Update: 2:10pm

SPD confirmed earlier this morning that what was reported to be a drug operation in the building was not actually a lab and the white powder found at the scene was not a narcotic.

"After an extensive investigation, no narcotics or public safety risk found during yesterday's investigation," wrote SPD.

Update 3:45pm
The initial security sweep of the area around 907 NW Ballard Way has been completed by Seattle Fire hazmat teams and wrap up operations are taking place. A one block area around the site has been cordoned off for safety reasons.

Original Post
A large scale haz-mat response took place near 11th Ave NW and NW 46th one block off the Burke Gilman Trail around 9:30am with both Seattle Police and Fire units coming to the scene.

Initial reports indicated that it was a potential drug lab of some kind but officials were waiting for further information before releasing a statement.

Seattle Fire Public Information Officer Lt. Harold Webb said, "They found some stuff in there that gives us a little pause. Initially white powder was found. We believe this property is vacant as you can see by the fencing and members of security found a bag of white powder. Our team made entry and discovered there was more to it. They found some evidence of maybe a possible lab. At that point we bring in SPD and Arson Bomb that helps us with any clandestine labs. That's our protocol. Once they found the beaker and some pans is an indication there was a lab going on there. We're in a mode where we are waiting and are shutting down traffic for now."

Webb could not confirm what kind of drug was found, but he said that there was evidence of squatters inside the building.

Witnesses at the scene reported high crime activity in the area and security personnel doing patrols near the building. It is also slated for demolition and will become a new 25,000-square-foot grocery store. It has been vacant for roughly six months. One neighbor reported that the building used to be the site of a dog insurance business.

A witness at the scene said, "I’m so glad they got this nailed. We find syringes all the time... We're always on the lookout now. In broad daylight this guy who was a friend of our studio just popped my sister's brand new car window out and took a bag that was laying there.”

Another witness who works across the street from the site reported seeing people hanging out and coming and going from the site.

“I would expect this in Granite Falls but not here. There are a lot people that drive through here. It could go off. It could blow," said a bystander.

Seattle Fire and Police will be investigating for the next few hours.