Paloma Capital LLP and Graftongate Properties are in charge of the £20M renovation with the units available for occupation from June this year.
The 13.7 acre site, directly behind Waitrose, is currently being marketed by Avison Young and White Commercial as a distribution centre.
The plans and a change of use planning application were approved last year and the site features 16 HGV loading bays.
Jamie Hockaday, director at Graftongate said: “We are delighted to have begun construction works on what is a significant investment to modernise the distribution premises, previously occupied by DHL and Aston Martin.
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"We are seeing a good deal of growth and interest from the logistics operators wishing to locate in the centre of England on the London to Birmingham M40.”
Chris White, managing director of White Commercial Surveyors added: “The refurbishment will provide modern facilities with easy access to the M40.
"Banbury has become more established as a distribution location over recent years and has attracted occupiers such as Amazon, Hello Fresh and the Entertainer, all of whom recognise the importance of the M40 as a trunking corridor, particularly well placed for those companies importing through the South Coast ports.”
To view the plans for the site visit the Cherwell District Council's planning page and search for 18/01246/F.