BPC Insights

Planning an Office-to-Residential Conversion in Houston

Published · BPC Development LLC

Older office buildings with high vacancy have owners and investors across the country asking whether those buildings could become apartments. Houston has its share of aging office stock, from downtown towers to suburban mid-rise buildings and small office parks. Some of these buildings are good conversion candidates. Many are not. The difference usually comes down to the building's shape, its systems and the cost of bringing it up to residential code.

This guide walks owners and investors through the questions that shape a conversion study. It is general information, not legal, financial or engineering advice. A feasibility study by an architect and engineers, along with advice from your attorney and lender, is essential before committing to a conversion.

Why conversions are harder than they look

Office buildings and apartment buildings are designed for different things. Offices often have deep floor plates, few operable windows, central restrooms and HVAC systems sized for daytime use. Apartments need light and air in every bedroom, a kitchen and bathroom in every unit, plumbing stacks throughout the floor and systems that run around the clock. Converting means changing almost every system in the building.

The Whole Building Design Guide's adaptive reuse resources explain the general principles of reusing existing buildings for new purposes.

Screening a building

Before paying for a full study, screen the building on a few key traits:

Some owners consider partial conversions, keeping some office floors or adding amenity space in the deepest part of the floor plate.

Building code and occupancy

Changing from office to residential is a change of occupancy. The building must meet code requirements for residential use, including exits, fire separations between units, fire alarms, sprinklers and sound separation. The International Building Code sets these requirements, and the City of Houston adopts and amends it. The Houston Permitting Center's plan review page explains how projects move through review. Early meetings with the city can help identify issues before design is far along.

Fire and life safety

Life safety changes often drive conversion costs. Expect to review:

The Houston Fire Marshal's Office reviews fire protection plans in the city. Our guide to commercial fire sprinkler retrofit planning covers sprinkler work in existing buildings.

Plumbing and mechanical systems

Every apartment needs a kitchen, a bathroom and laundry connections in many cases. That means:

Coordinate early with CenterPoint Energy through its business services and with Houston Public Works on water and sewer capacity.

Windows, light and air

Bedrooms typically need natural light, ventilation and emergency escape or rescue provisions under the code, depending on the building's height and sprinkler status. Fixed office windows may need to be replaced or modified. Energy code requirements also apply when the building envelope changes; the International Energy Conservation Code sets that framework.

Accessibility and fair housing

Residential conversions must meet accessibility requirements for common areas and a share of units under federal and state rules. The 2010 ADA Standards apply to public and common use areas, and federal fair housing design rules apply to many new and converted multifamily buildings, as HUD explains on its fair housing page. Our guide to fair housing accessibility retrofits for multifamily covers common items. Talk with your attorney about which requirements apply.

Hazardous materials

Older office buildings may contain asbestos in fireproofing, floor tile, ceilings and pipe insulation, along with PCBs in some older materials. The Texas Department of State Health Services explains asbestos rules in Texas, and the EPA explains PCBs in building materials. Our guide to commercial asbestos surveys before renovation explains survey requirements.

Historic buildings

Some older office buildings are historic. Historic status can add design review and, for some income-producing buildings, open the door to rehabilitation tax incentive programs. Our guide to renovating historic properties covers the basics.

Parking, floodplain and site issues

Residential uses have different parking needs than offices. The City of Houston's off-street parking rules set requirements by use. Check whether the site sits in a mapped floodplain, since major renovations can trigger floodplain compliance; our guide to renovating in a Houston floodplain explains the substantial improvement rule. Deed restrictions may also apply, so have your attorney review title.

Feasibility study steps

A typical study includes:

Questions to ask before committing

Common mistakes to avoid

Quick checklist

Studying an office-to-residential conversion in Houston? BPC Development LLC provides free on-site estimates in Houston, TX. Call (281) 301-4737.

Call (281) 301-4737Get a free estimate