UPDATE: Police have confirmed a fire in East Albury is being treated as suspicious.
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An alarm sounded at the home next to Albury Electroplaters on Borella Road early Thursday morning before the fire.
A police spokeswoman said police had been called to the property after reports of a break-and-enter, followed by a fire.
"The fire was extinguished, however, the building sustained extensive damage," the spokeswoman said.
"Officers from Murray River Police District established a crime scene and have commenced inquiries into the circumstances surrounding the incident which is being treated as suspicious.
"Police have been told a security alarm was activated prior to the fire starting and are appealing to anyone who may have seen anything suspicious in the area to contact Albury Police Station or Crime Stoppers on 1800 333 000."
Crime scene officers have attended the destroyed home.
Enquiries were made with nearby businesses.
NSW Fire and Rescue Superintendent Stewart Alexander said firefighters prevented the blaze spreading to nearby properties.
"The structure is still standing however there's been a lot of damage inside," he said.
"It will take a lot of work to repair it or it may have to be demolished, which will have to be determined."
He said a large number of Triple-0 calls had been made, which he said was important when such incidents occurred.
EARLIER: An older building at an East Albury business was destroyed by fire early Thursday morning.
Police are investigating the blaze at Albury Electroplaters on Borella Road, with officers guarding the scene of the overnight incident.
Fire and Rescue Superintendent Stewart Alexander said the incident occurred at a home which was used to store goods for the business.
He said the incident was being investigated by police and there were no injuries.
Leading firefighter Stephen Hayes, of Fire and Rescue NSW Albury Central, said the call-out to the building fire came at 2.24am, with the fire towards the back of the property.
Firefighters laid lines to the rear and side to stop it spreading to other buildings.
"The house was totally involved, it was a fairly old derelict asbestos building, it was pretty much gutted," he said.
Crews from Albury Central and Albury Civic were on site until 4.37am, with police and ambulance also attending, although the latter was not needed.
Leading Firefighter Hayes said firefighters enacted their asbestos protocols.
"We left our contaminated hoses on site and also bagged and tagged our gear for special cleaning," he said.
The Border Mail was told bystanders during the fire were warned to keep away because of toxic smoke.
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