Tesco has put the former Serpentine Mills site in Cleckheaton up for sale for £2.5m.
Derelict industrial buildings that stood there were flattened earlier this year, after years of wrangles which ended with Tesco shelving plans to build a new supermarket.
But, after pressure from residents and traders, Tesco has handed the land over to property agents Walker Singleton to sell.
Cleckheaton councillor Kath Pinnock believes any sale and subsequent development could have a domino effect for the rest of the derelict area around it.
She said: “It is great for Cleckheaton that the site has gone up for sale.
“Hopefully the owners of other pieces of lad in the area could see how much money Tesco is getting for the site and think ‘why can’t we make some money back on the land that we own round there?’ – it could be very good for the town.
“But I was a little surprised at the value that Tesco put on the site.
“I suspect this may be Tesco trying to recoup what they paid for it.”
Despite the asking price, Walker Singleton director David Heap said there has already been plenty of interest in the site.
He said: “It is a prime location in a town centre, and we have had a few enquiries so far.
“Any deal would take at least a couple of months to complete, but we are confident we will find a buyer.
“I am not sure what would be built on the site, but I imagine it will be sold for the use that will make the highest profit.”
The site currently appears on house-trading website Rightmove.co.uk, and includes 3.3 acres of empty land, and an empty house at 50 George Street.