Five fire engines from Morecambe, Lancaster, Carnforth, and Kendal attended the scene in Warton Road at around 3.50pm on Wednesday (April 6).
The incident involved a quantity of waste that had gone up in flames inside the former Railway Club.
Firefighters used four breathing apparatus, two hose reel jets, two positive pressure ventilation units and forced entry tools to extinguish the flames.
“The incident is being treated as deliberate and an investigation has now been launched,” a spokesman for Lancashire Police said.
Police closed the road between Market Street and Shore Road while the area was made safe.
Fire crews were in attendance for approximately 50 minutes.
Anybody with information can contact the police by calling 101, quoting log number 0977 of April 6.
Crimestoppers can also be contacted anonymously on 0800 555 111 or online at crimestoppers-uk.org.