Report has it that, fire has destroyed a $2 million mental health care centre in North Hobart and a 53-year-old man has been charged with attempted murder and arson.

The blaze broke out just after 10.30am today at the historic Peacock Centre wedged between Swan and Elphinstone streets, which has been used as a day centre for mental health clients and a base for staff visiting clients in the community over recent years.

The building was quickly evacuated by staff as Tasmanian Fire Service battled to bring the blaze under control before it spread to other historic homes in the built-up area or threatened the popular North Hobart restaurant strip.

Two THS staff were taken by Ambulance Tasmania to the Royal Hobart Hospital for treatment and others were reportedly treated at the scene after suffering the effects of smoke inhalation.

No burns were reported and no patients were inside at the time of the fire.

Tasmania Police Inspector Adrian Bodnar said no nearby residents were evacuated.

However, police quickly shut off streets surrounding the area with traffic rerouted away from Elphinstone Rd, Elizabeth St, Mortimer and Mt Stuart roads for much of the day.

Just before noon, police reported that one person remained unaccounted but was later found.