Demolition has begun on a former office building in Temple Way which has stood empty for five years.

The 1970s building, previously occupied by AXA Insurance and computer giant IBM, is set to be transformed into a development of offices and homes called Glassfields.

Work to demolish the building, between the junctions of Avon Street and Broad Plain on a site originally occupied by Bristol glassworks, is expected to take more than four months.

Gareth Dickinson, of site owner Royal London Asset Management, said: "We felt it was important to undertake the demolition of the existing buildings and to clear the site ready for the next phase of development.

"We closely monitor the Bristol office market and are encouraged by the recent spate of occupational activity.

"Glassfields offers a fantastic city centre opportunity for occupiers and we felt it was the right time to show further commitment to bringing this site forward."

The development is being marketed jointly by agents King Sturge and Knight Frank and they say a "keen interest" in the site has been shown by several businesses.

Planning permission for the development, dubbed the gateway to the Temple Quarter, was granted in May 2007.

The glass-fronted building will provide 186,000sq ft (17,279sq m) of office space.

It will feature a curved glass facade and a new grassed square will provide a secluded public space. Under the plans, an illuminated glass column artwork will be created next to the main entrance.

The new seven-storey building features six floors of office space of 30,000sq ft each.

It is the first building in a three-phase scheme which will create 360,000sq ft (36,500sq m) of headquarters office space for up to 3,000 staff with underground car parking. There will also be a ground-floor cafe and flats.