Scottish Borders Council has granted approval for an application from Simone Falcone, of Langlands Bank, Hawick, for the conversion of the property at 2 Teviot Crescent.
Although not a listed building, the property is in a conservation area and has enjoyed a varied past.
It was last used as home to Border Cycles and was before that Diesels nightclub.
A council heritage spokesman said: “The building was originally built as a Labour Exchange in the 1930s, and is a good example of its type, although unlisted.
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“It has been in more recent years a nightclub with internal alterations and blocking-up of windows, and then more recently home to Hawick Cycle Club.
“The physical alterations proposed are modest in terms of building works with the currently blocked-up windows being reopened and extract fans added.
“I welcome the bringing back into use of this building which lies in a prominent position near the Little Haugh and river, and consider that the proposals will enhance the conservation area.”
In her report, Julie Hayward, the council’s lead planning officer, says: “The building is currently vacant and does not contribute to the vitality and viability of the town centre. The proposal will bring the building back into use. The proposed use would encourage the use of the town centre in the evening.”