The One City Centre, a 27-story building strategically located at 1021 Main Street in downtown Houston, is set for a major transformation as part of the city’s increasing trend of office-to-residential conversions. This project, spearheaded by 3L Real Estate, entails a $26.5 million investment to redevelop the 780,530-square-foot tower into a mixed-use facility, accommodating both residential and corporate needs. Recently filed plans with the Texas Department of Licensing and Regulation reveal that construction is slated to commence in February 2026, with a completion goal set for December 2027.
The redevelopment will yield 553 units, including 93 short-term “hotel apartments” intended as corporate suites for business visitors on the lower floors, and 460 traditional residential apartments occupying the upper levels. 3L Real Estate CEO Joseph Slezak noted that the building’s conversion is tailored to areas like downtown Houston, which have experienced high office vacancies and evolving work habits, thus driving demand for residential options. The company plans to leverage tax incentives, such as historic preservation credits, to financially support the endeavor.
This initiative is part of a broader movement of adaptive reuse in Houston, which has seen an uptick in conversions owing to incentives from state and local governments. According to CBRE, the pace of office-to-residential conversions is set to more than double the average of the past seven years. In Houston alone, 2.3% of the office inventory, or about 5 million square feet across seven projects, is either planned or undergoing conversion, a significant rise from the 1.2 million square feet repurposed from 2016 to 2022.
With downtown Houston’s office vacancy rate at an elevated 25.9%, well above the national average, developers view adaptive reuse as a viable solution to align with urban housing demands. However, practicality dictates that only a fraction of these office spaces can be feasibly converted, presenting both a challenge and an opportunity for innovative real estate development in the city.
