The Second Life of Buildings

By: J. David Chapman, PhD, / August 14, 2026

One of my favorite things about real estate is that buildings often outlive the reasons they were built. Across America, schools are becoming apartments. Hotels are becoming workforce housing. Shopping malls are evolving into mixed-use neighborhoods. Warehouses have become lofts, and factories now house breweries, restaurants, and offices.

Some see these conversions as evidence that something has gone wrong. I see them as evidence that cities are doing exactly what they are supposed to do. Buildings, like cities themselves, should evolve.

Developers talk about "highest and best use," but the highest and best use of a building is rarely permanent. What made sense in 1950 may no longer make sense in 2026. Successful communities allow buildings to adapt rather than become obsolete.

That is one reason historic downtowns remain so resilient. Walk through Edmond, Guthrie, Stillwater, or countless Oklahoma towns and you will find buildings that have lived several lives. A hardware store becomes a law office, then a boutique, coffee shop, or restaurant. The building survives because it exists in an environment where change is possible.

Urbanist Jane Jacobs famously wrote, "Old ideas can sometimes use new buildings. New ideas must use old buildings." I love that observation. Older buildings often provide the affordability, character, and flexibility that allow entrepreneurs and small businesses to take risks. Innovation frequently begins in yesterday's buildings.

I have experienced this firsthand with The Barlor, a 1918 Sears home now enjoying a new chapter as a neighborhood gathering place. The structure did not become less valuable because the world changed. It simply needed a different purpose.

There is a lesson here for landlords and investors. Instead of asking, "How do I lease this vacant building?" perhaps we should ask, "What problem could this building solve next?"

It is also an argument for mixed-use neighborhoods, walkable streets, and flexible zoning. Buildings in adaptable places are easier to reinvent, and adaptability becomes an economic advantage.

The most sustainable building may not be the newest one. It may be the one already standing and given an opportunity to serve another generation.

Great cities are not museums, nor are they demolition projects. They continually reinvent themselves. The future of real estate may not be defined by the buildings we construct, but by the imagination we bring to the buildings we already have.

Dr. J. David Chapman is Chair of Finance & Professor of Real Estate at The University of Central Oklahoma (jchapman7@uco.edu)