Four fire engines, two ambulances and several police cars rushed to the scene on Station Road in the early afternoon.
At 12:52 p.m. emergency services arrived at Tamar House, 7-11 Station Road after reporting fires in the building.
Members of the public and local shop owners stood aside as firefighters entered the building through the main entrance.
Chief firefighter at the scene, Greg Pearson, said: ‘The call was a false alarm. We think someone was burning incense and someone overreacted.
“Unfortunately, due to the type and location of the building, everyone had to be called out just in case it turned into an emergency.”
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Andy Critchfield of London Camera Exchange, located next to Tamar House on Station Road, said: ‘We were in the store and suddenly there were four fire engines, ambulances and police cars outside , but nobody told us to evacuate, so we didn’t. know what was going on.
A Royal Berkshire Fire and Rescue Service spokesperson said: “At 12.52pm on Thursday 9th June we received reports of a fire in a building on Station Road in Reading.
“Royal Berkshire Fire and Rescue Service crews from Ascot, Bracknell and Whitley Wood fire stations were dispatched to the scene alongside an aerial ladder platform and an officer.
“Upon arrival, teams checked the building and found no signs of fire.
“They stayed at the scene for about 20 minutes.”