The old Peugeot garage, next to the Waitrose supermarket, will be converted into seven units under the scheme, called Ecclesall Junction.
The former car showroom, which has been empty for years, is set to be extended to the rear over two floors, creating more than 3,480 sq m of floor space in total.
A range of uses are planned for the new units – two large units and five smaller ones – from shops, restaurants and cafés to a gym, a bar and room for businesses.
Approving the proposals, council planning officers said bringing the property back into use was a ‘very sustainable use of land’.
“The proposed extensions are fairly modest in size and they relate to the scale and built form of the original building,” officers said in a report.
“It is acknowledged that the design has been constrained heavily by the fact that the proposal is for a change of use of an existing building that is, architecturally, of its time.
“However, the proposal is sustainable in terms of the re-use of a significant proportion of the existing building and, the regeneration of the site with new retail uses is given significant weight.”
There were no objections to the scheme, put forward by the site’s owner, Nikal.
Landscaping features and protective measures for the Porter Brook river have been promised, along with more than 80 car parking spaces.
The gym would be open for 24 hours, the cafés from 7am to midnight and the shops would have the flexibility to open between 9am and 9pm. At least 20 to 30 jobs could be created.
The main entrance to the site for cars will be off Ecclesall Road – the existing shared access road with Waitrose – with exits on to Harrow Street.
Built in 1996, the Peugeot showroom was used for 15 years until the company moved to a new garage near Attercliffe.
The building’s steel frame would be re-used to create smaller individual units which can be leased more easily than one large commercial space.
The development will target Waitrose customers, but it is hoped the showroom’s redevelopment will be beneficial to both the supermarket and the new retailers.