The building - the first of two - is under construction above the Church St council car park and is scheduled for completion "early next year".
Mr Barwood said when both buildings were completed they would add thousands of square metres of retail and office space to the compact CBD in Queenstown.
Designed by +MAP Architects, the Church St development would comprise 7600sq m of retail and office space over four levels, being developed by a consortium of Queenstown developers and investors headed by John Martin and John Guthrie and the GW Property Group from Sydney.
Mr Barwood said Queenstown "desperately" needed more retail space and and with retail rents showing meteoric growth in recent years through high demand and muted supply, the complex would help.
"A flourishing tourism industry in Queenstown means that well located retail premises are among the most sought-after in the country.
"Vacancy rates in the town's prime retail sector are negligible, with few vacant premises noticeable, even in the outer secondary area.
"Rental rates in the prime retail precinct, bordered by Shotover, Camp and Rees Sts and The Mall, range from $1000 to $1500 per square metre and these rates have been trending upward, year after year," Mr Barwood said.
Strong interest was expected in the Church St building because of the shortage of space, because it would be aesthetically pleasing and because its location would deliver an ample supply of foot traffic.
The emphasis on the latter - foot traffic - in the design was reflected in a 4m-wide "street" or access way which had been cut through the centre of the site, connecting Searle Lane to Church St.
Kerry Mason of +MAP Architects said because the building fell within the town's heritage zone, there were extra considerations in its design and particular emphasis had also been placed on views, natural light and mechanical services.
The building will be finished in a combination of schist, steel, glass, painted weatherboards, cedar and slate, with copper roofing.
Design features include stone gables and chimneys, concealing all the building plant, Mr Mason said.
The retail ground floor street and lane faces will have shop fronts framed by stone surrounds, all of them varied to create an "eclectic mix"of finishes and scale.
Mr Mason said a "generous" ground floor lobby would serve the upper three levels and there would be a 12m high "hardwood bridge" spanning the central laneway.
Mr Barwood said there was already interest in the property from a range of national, international and local retailers.
However, before any decisions were made on leasing, he wanted to hear from as many retailers as possible regarding their space requirements.
"There is certainly enough space in the building to accommodate a range of businesses, from bulk retailers through to smaller sized shops.
"The building will also contain high-quality office space on the upper levels which will cater for the growing number of service companies and professional practices resulting from Queenstown's rapidly expanding business economy."
Mr Barwood said the building will be large enough to accommodate a "major tenant" wanting naming rights.
