Property Alliance Group has picked Russells Construction to build a 19,500 sq ft office and science building at The Green in Bury.
The company has started building the facility on Carlyle Street for LGC Standards, which signed to the development in February.
The laboratory services firm, currently located at Europa Business Park in Bury, is moving as part of its future expansion plans.
The contract is worth £1.9m to Russells Construction which is aiming to have the building complete by November.
Andrew Russell, managing director of Russells Construction, said: "As their preferred construction partner, we have been able to commence work on this project. This is part of a major programme of investment in Bury town centre and is a welcome sign that the commercial property market is starting to move again."
The Green is a development of 92,000 sq ft of Grade A office accommodation overlooking the River Irwell, which incorporates four separate buildings that can be subdivided into smaller suites. Plans include 265 car parking spaces.
Trafford-based Russells Construction is a sister company of Property Alliance Group founded by Andrew and Gareth Russell in 1997.
Edwards & Co and Nolan Redshaw are joint agents on the scheme.