Police were called to the Tattoo Culture shop in Scollay Street, Greenway at about 1.20am on Friday after reports the store was alight, and ACT Fire and Rescue attended the scene and extinguished the fire.

The tattoo parlour was completely gutted after what was the second fire lit at the shop this year.

Australian Federal Police Forensic Services are examining the scene and ACT Policing's Taskforce Nemesis has launched an investigation into the fire, as it is believed to be outlaw motorcycle gang-related.

Multiple shop owners in the building on Reed Street North, opposite the the Tuggeranong Hyperdome, were called to the scene at 3am and asked to open up their shops so police could assess the damage to Tattoo Culture.

The tattoo parlour appeared completely burned, with glass and debris littering the footpath and the front wall entirely destroyed.

Labrini McDonald, owner of Arnold's Ribs and Pizza which is next door to the tattoo parlour, said she was unsure whether her own store had been affected because police had not let her into the store since waking her in the middle of the night to open it up.

"It's so frustrating because have been standing here [at the scene] for seven hours and I have no idea what is going on or when we'll be allowed in," she said.

"When the same thing happened in May, we were interviewed by police in our shops at 8am. This time we haven't been able to step foot in our stores all day."

Reed Street north was blocked off in both directions as of 1pm between Athllon Drive and Scollay Street and traffic was being diverted.

It's the second time the tattoo shop has been damaged by fire this year, but owners of other shops in the building say this fire appears to be much larger than the last one, which happened in May.

The owner of the Medium Rare Meats Butcher, two doors down from the tattoo parlour, was also called to open her store at 3am and said the damage to the tattoo parlour appeared much more extensive than in the last fire.

Most people had not been able to get within 10 metres of the two-storey building.

A police spokeswoman said officers were determining whether the fire was suspicious but would not provide any further details of how the fire started.

While the shop appears to have been completely gutted, the fire doesn't appear to have damaged any other shops, but neighbouring business owners haven't been told whether their shops and offices have been impacted.

One shop owner was told by police that they could likely be allowed back in later on Friday.