The fire spread into the walls of the building, according to Deputy Fire Chief John Gelinas, but firefighters were able to prevent the blaze from spreading to the top level.
The building contains retail on the first floor, and apartments on the second and third floors.
All occupants were evacuated.
said a total of 12 residents have been displaced temporarily for the next two days while the building is inspected.
No injuries were reported.
Cause of the fire has been deemed accidental.
Damages have been estimated at $125,000.
said dryer fires are not an uncommon occurrence