The oldest building on Palace Street is the Vorontsov Palace, erected to the design of architect Giovanni Scalone (c. 1800–c. 1860).
At the time of its construction, there was still no clear urban layout on the site of the future street: the area consisted of irregular blocks, private estates, and service buildings belonging to the palace.
The formation of the street line began only in the 1860s. It was then that the route of the future Palace Street was leveled and the first stone houses appeared, owned by merchant and official families.
About a decade later, more intensive development began: larger three- and four-story buildings with plastered facades were erected along the street, and shops began to open on their ground floors.
In the late 1880s, Palace Street became part of the city’s transport network when a line of horse-drawn railway was laid along it.
In the early XX century, electric lighting was introduced, and the horsecar line was soon replaced by a tram, firmly establishing the street as one of the city’s busy thoroughfares.