In the early 1900s, Wauwatosa's population grew dramatically. With this expansion, the community began to establish itself as more than just an industrial village and became a "sleeper suburb" of Milwaukee. In order to maintain the community's residential character, the city of Wauwatosa approved a comprehensive zoning ordinance in 1921. A stretch of North Avenue was designated to be developed as a commercial district. The Arcade Building was built as a part of this district in 1928 and housed several different businesses including a bakery, food store, pharmacy, physician's office, dentist's office, and eventually a tavern with bowling lanes.

The Arcade Building serves as an excellent example of a commercial building influenced by Spanish Colonial Revival/Mission Revival architectural styles. The building is constructed of brick and displays a red, Spanish barrel tile roof. It boasts Mission style parapets, decorative ceramic tile, and a bell tower, which are elements of the revival style.

Several different businesses have moved through the building and, after years of declining use, the building underwent a renovation in 1995 using the federal rehabilitation income tax credit program.