Firefighters and police are working to determine the cause of the blaze which burnt on Old Pittwater Road in Brookvale about 9.30pm yesterday.
Sixty firefighters were called in to tackle the flames, which authorities said had engulfed the building.
“Multiple explosions could also be heard,” firefighters said.
“At one stage, there were signs the structure was going to collapse and firefighters were forced to pull back.”
An exclusion zone was set up and the road was closed as crews worked to contain the fire and protect neighbouring premises.
It took firefighters about two hours to fully extinguish the blaze.
No injuries were reported but the dry cleaners business was destroyed by the damage.
The road was reopened before midnight as crews remained on scene until this morning to ensure the fire had not re-ignited.