Public owners sell when deferred capex outgrows the budget, and the buyer inherits the bill.
Houston's City Council passed an ordinance letting the city work with Cushman & Wakefield to sell two city-owned towers (Connect CRE, Oct. 16).
The properties are 611 Walker St., home to Public Works, and 1200 Travis St., home to the Houston Police Department. Both were built in 1966.
The city cites weak generators and outdated electrical systems, and says it cannot afford the improvements needed to keep the buildings open.
A city official said in July 2025 that the two buildings had 18% and 15% of remaining service life if left unimproved.
Both agencies will move to 1600 Smith St., which the city recently acquired. Square footage, floors, value and timeline were not reported.
Implications: A buyer is pricing land and a 60-year-old shell with failing systems, so basis depends on demolition or gut-rehab cost. The agencies must move before delivery, which controls timing. The source names office, hotel and residential as candidates; entitlement and the 1600 Smith St. relocation cost are the open items.
Key Takeaways
- A building with 15% of its service life left is a land sale with a demolition bill attached.
- The buildings are about 60 years old (derived)
- The city says it cannot afford the improvements needed to keep them open
- Redevelopment uses named: offices, hotels, residential
Connect CRE, Cushman & Wakefield Scores Marketing Deal for Two Houston City-Owned Towers, Oct. 16, 2026
Never miss a Signal
Get the daily brief that busy CRE professionals rely on.