The Civic Centre in Middlesbrough is set to be demolished - with the council spending nearly £9million to move staff into another building next year.
The council will buy Fountain Court for their new base.
It's thought the move will save money due to costs needed to maintain the civic centre.
The Civic Centre currently has a £2m maintenance backlog, which the council would not be required to pay if it moved buildings.
Mayor Andy Preston said: "Before I was elected the council was committed to moving into a brand new, £20m, very fancy office - I cancelled that move and decided that instead we should rent out the new building and bring money in.
"This new move to an older building means we are bringing an older building back to life which is better for the environment and we're saving money too - perfect."