HOUSTON—It's challenging and rewarding transitioning old buildings into new office concepts.

That was the subject of the second panel at GlobeSt.com Thought Leader NAIOP's inaugural O.CON: The Office Conference at Houston's JW Marriott Galleria.

Moderator Michael Wyatt, managing director of CORE Real Estate LLC, led the panel, consisting of Mark Hansen, SVP, Prologis; and William Katter, EVP for United Properties.

Katter gave two case studies, one on the Ford Center—a historic renovation which his firm transitioned a “failing class-C building” to a modern, spec office development—and one on the Loose Wiles Biscuit Factory.

In the former, because the site was near a future transit station and next to a new Major League ballpark, the project was able to capitalize on millennial interest as well as tax credits. The firm spent $67 million to renovate the building, adding a new roof deck, new elevators and entries, and most significantly, restored all of the windows—some 90%—at a significant cost to maintain its previous façade.

In the second project, a $20-million project located in Minneapolis's north loop, required less restorative work and a smaller tenant leasing plan meant the project was faster to lease. Currently, it is 100% leased.

Hansen gave a case study presentation on a Prologis warehouse conversion of an old, 202,000-square-foot building, considered “surplus real estate” by its owner.

A bevy of challenges faced the project, which transitioned into a modern distribution and corporate office space, including the inability to go vertical, due to an adjacent airport.

A high-end $18.6-million office building resulted, with a “work café” and numerous places for people to collaborate in a comfortable, less formal manner, and including outdoor work spaces.

As Hansen summed up: “Super cool does not have to be super expensive!”