A council housing service will move into Lancaster Town Hall later this year.
The office at 38 Cable Street will be relocated after a decade because the lease is due to expire.
A Lancaster City Council spokesman said the landlord of the Cable Stret property has been in talks about redeveloping the building.
“It will bring further service improvements for council housing tenants who will be able to make enquiries and service requests through the single point customer services desk at Lancaster Town Hall,” said the spokesman.
As a result of the lease terminating early, overall the council will save around £82,000 annually.
The move could happen before the end of the year.