The former Pandamonium soft play centre in Framfield Road, Uckfield, is being demolished.
The site, next to DJ Osborne butchers, is boarded from the road while work takes place.
Planning permission has been granted for flats and offices.
The development is being carried out by Uckfield-based Mid Sussex Homes. Best Demolition of Heathfield is knocking down the old premises.
Previous stories about the site can be found here:
August 15, 2013: Former Pandamonium building in Framfield Road, Uckfield, up for sale
August 4, 2012: Plans for offices and flats at former Pandamonium play centre