A fire alarm could be heard blasting as light smoke filled the footpath.
Hato Hone St John said they were notified of a fire on Customs St East at 11.41am but their service has not yet been required.
At least four police cars are in attendance and about seven fire appliances.
Fire crews who have come out of the strip club can be seen scrubbing down equipment as further assistance arrives at the scene.
A number of bystanders can be seen stopping and watching or filming the response.
Schofield Cheen at neighbouring store Mr Katsu said he noticed the fire about 11.50am and that the smell was “not good”.
Cheen said the fire alarm in his store began blaring. He said Fire and Emergency crews asked him to vacate the store. It has since reopened to customers.
Owner of nearby eatery Bõnás Thai Cuisine, David Stannars, told the Herald it was the third fire at the strip club in about as many years, but this one seemed more serious.
He said quite often the workers would stay inside the strip club overnight after finishing their shifts in the early hours of the morning.
“Someone may have just left a heater on overnight or had a problem making their tea. That’s what’s happened in the past.”
He said the women exited the club in an orderly fashion and it was quite an “undramatic” scene and the club’s fire alarms coincided with nearby stores’ alarms.