Greater Manchester Property Venture Fund has started work on a 35,000 sq ft speculative office, Kings Point, in Oldham town centre.
The five-storey office building was partly funded by the European Regional Development Fund and will be completed in January 2009.
Nick Whipp, director at GVA Grimley and principal advisor to the GMPVF, said: "Oldham has seen rapid regeneration in recent years including a series of residential developments, which have proved successful.
"Those planning to work in or relocate to Oldham will see that the emphasis is now very much on improved education evidenced by the significantly improved results of the local schools. This is encouraging as it means that Oldham is providing a broad and diverse labour pool, hence the need for high quality office space in the town".
GMPVF is administered by Tameside council on behalf of the pension fund of the ten Greater Manchester authorities.
GVA Grimley is sole letting agent for the scheme.