The nursery has occupied the site for 80 years, where the administration, distribution and retail areas of the business are based. It is looking for a new site closer to its main growing fields to the north and east of Leicester.
Coles has just completed a public consultation on the housing proposal and hopes to submit the application to Harborough District Council in the next three weeks.
"Nothing will happen if we don't find another site. We are not selling up or anything," explained managing director James Coles.
"The site we are on is at capacity and we are looking for somewhere better, closer to our main growing areas. This would mean greater efficiencies, lower transport costs and easier movement of staff.
"Land is required for housing so this is a good time to look at this. We should get a decision on planning permission by Easter next year and will probably move in three to five years."