Damage is estimated at $1 million in a fire that destroyed two co-habitating businesses in downtown New Hamburg.

The call came into firefighters from New Hamburg Cleaners on Peel Street shortly before 7:30 p.m. Wednesday.

“By the time we got here, one end of the building was fully involved. It was a very quick progression” district fire chief Russell Strickler tells CTV News.

The fire quickly spread to encompass both the dry cleaning and coin laundry sections of the business.

The building and a nearby shed were destroyed, but firefighters were able to stop the flames from spreading to nearby buildings.

No injuries were reported and no cause has been determined, but officials believe the fire may be suspicious.

At Phidellia’s, a nearby restaurant, owner Karen Koerber-Tughan says she’s glad the flames didn’t spread to her business, but she’s feeling sympathy for her neighbours.

“It’s heartbreaking. When you leave your business at the end of the day, you hope it’s safe. You worry about fires,” she says.

Wednesday’s fire was the third to hit the New Hamburg area so far in 2014.

Tuesday morning, flames destroyed a home undergoing renovations south of New Hamburg.

Earlier this month, a home in the town was gutted by fire while its owners were on vacation.

In all three cases, suspicious activity has not been ruled out.