New York City officials said no one was injured in the collapse of the six-story building. The site is near where crowds traditionally gather on December 31st to see the traditional ball drop marking the new year, a celebration watched by millions on television.
"The real challenge now will be to take down the building and remove the debris," Mayor Rudolph Giuliani told reporters. "It's the hope we can get most of the debris moved today so that the avenue will be open for tomorrow night."
A combination of a winter storm and construction of a hotel and entertainment centre next door apparently caused the collapse yesterday morning, the New York City Buildings Commissioner, Mr Gaston Silva, said.
The structure, formerly a residential building, was built in 1926-27. The ground floor was being used as a visitors' centre by the Times Square Business Improvement District (BID), organisers of tonight's festivities.
Some 30,000 balloons, 3,000 pounds (1,361 kgs) of confetti and 20,000 pom-poms to be used at the party were being stored in another building next door and were not damaged. A BID spokesman, Mr Peter Kohlmann said. He said brochures were destroyed and some computer equipment damaged.