City council has approved the first step in a new commercial real estate development in east Regina.

The first reading for Tower Crossing passed at city council on Monday night. The development would see close to 1.8 million square feet of commercial development.

The land was annexed by the city in the last year as part of their growth plan. However there are still concerns over services in the area.

The developer told city council they don't build based on speculation and they know there is a demand from retailers in the area.