Houston Needs More Know-How to Convert Older Buildings and Avoid Losses

Panelists at Bisnow's Downtown Houston's Next Chapter event argued that the city is losing older buildings that could be reused, and that Houston needs more institutional knowledge to change that. The discussion followed the partial demolition of the Kirby Mansion, a 1890s Tudor revival structure with no historic landmark protections, which was torn down on Oct. 30 despite protests and a permitting issue.

State filings tie the site to a roughly $2 million project for a 13,000-square-foot one-story convenience store at 530 Pierce St., with owners linked to the Brake Time gas station chain. Ori Batagower of The Deal Co. said the loss shows the need for preservation tools before buildings reach the wrecking ball.

City Chief Economic Development Officer Gwendolyn Tillotson-Bell said the city engaged too late and is now working with private developers on layered incentives and new equity sources. Ryan LeVasseur of LeVass Ventures said Texas offers a 25% historic tax credit with no cap, which can be stacked with federal credits, and proposed a city role to guide developers through permitting and historic designation.

The panel also cited a 2023 Downtown Houston+ study finding office stock hard to convert. Projects underway include One City Centre, a $26.5 million conversion of a 780,000-square-foot office tower into apartments and a hotel-style corporate suite hybrid, and a former Folgers coffee plant in the East End being converted into a charter school. Lone Star PACE's Glenn Silva said conversion emits about 70% less carbon dioxide than demolition and new construction.

For developers and lenders, the practical takeaway is that reuse feasibility in Houston hinges on incentive stacking and early engagement with city permitting and historic designation.