HOUSTON – (Realty News Report) – Downtown Houston has been transformed dramatically over the last several decades. What once felt like a central business district that emptied out at 6 p.m. and housed only a few thousand residents is now alive with new multifamily developments, expanded retail and public amenities such as Discovery Green. Is the downtown boom sustainable? Has the multifamily market reached oversupply? Do parks and dog runs truly draw residents into the urban core? We spoke with downtown residential development pioneer Marvy A. Finger to get his perspective. A native Houstonian, Finger built his first multifamily project in the city more than 50 years ago and still owns it. Under his leadership, The Finger Companies has developed more than 28,000 multifamily units, currently holds 37 properties and manages over $2 billion in assets.
Realty News Report: You were among the first major multifamily developers to see the potential of Discovery Green. Tell us about your One Park Place high-rise and how you knew it would succeed.
Marvy A. Finger: We began work on One Park Place in 2005, which marked the moment I turned more of my focus to downtown Houston. Five years earlier I built Museum Tower, a high-rise residential project in Montrose that was extremely successful — it was the first of its kind in 17 years. At the time I was developing apartments in many major U.S. cities — Atlanta, Boston, Chicago, Dallas, Denver, Houston, Los Angeles, Miami and Minneapolis — and I could see how a thriving downtown residential market supports both ownership and rental product. Houston hadn’t seen much new residential construction downtown for a long time; most people lived in the suburbs. But with the Museum Tower’s success and a Greater Houston population over 5 million, I felt there would be steady demand. I estimated that out of 5 million people I could find enough residents who wanted to live downtown and convinced lenders to back rental development there despite limited local comparables.
We identified a site two blocks from City Hall that belonged to the Cornish Group of Baltimore. The location hugged I-45, and I knew it was right. When the city began planning a downtown park near the George R. Brown Convention Center — with the Kinder family playing a major role — I became convinced the timing and amenities would create strong demand. I focused on securing land in that area because I anticipated pent-up demand for downtown housing — and that demand did materialize.
Realty News Report: You completed 500 Crawford, a 400-unit downtown project, in early 2016, at a time when oil prices fell below $30 a barrel and Houston’s economy slowed. With oil and jobs rebounding, what is the status of 500 Crawford today?
Marvy A. Finger: 500 Crawford was challenging from the start and has continued to face hurdles, but today it sits at about 90% occupancy. We were early to the market and one of the first new mid-rise projects to open, but the construction phase encountered unexpected obstacles tied to utilities and the site’s history as a hotel. Those issues delayed delivery and reduced leasing momentum. By the time we opened, a wave of new projects had arrived, increasing competition. Even so, 500 Crawford reached and has maintained roughly 90% occupancy without resorting to deep concessions. While offering three- or four-month free rent might have boosted occupancy faster, we chose to preserve pricing because we believe in the property’s location and long-term value, and we haven’t experienced significant turnover.
Realty News Report: Several older downtown office buildings, like the former Texaco building, have been converted to residential or hotel uses. Many office towers now feel obsolete unless they undergo significant upgrades. How far can this conversion trend go?
Marvy A. Finger: Converting office buildings to residential can be expensive and isn’t always economically viable. Until we see sustained employment growth — particularly in higher-paying white-collar sectors — many conversions won’t make sense. Current job growth in Houston has been concentrated in areas like the Port of Houston, the Texas Medical Center, and petrochemical refineries. Many jobs in those industries don’t support the Class A rents necessary to justify conversion costs. Moreover, the oil and gas sector has learned to operate with a leaner workforce, reducing migration-driven housing demand. In our leasing intake, we see few renters relocating from other cities; most are changing jobs locally. Without a meaningful upswing in demand, repurposing older buildings is unlikely to accelerate. Some developers are driven by easy access to capital and the prospect of quick returns — borrowing to build and aiming to sell at a profit — but fundamentals must align for conversions to be sensible.
Realty News Report: TxDOT is rerouting the Gulf Freeway through downtown, which will allow removal of the Pierce Elevated — a major barrier between downtown and Midtown. What should be done with the land currently occupied by the elevated structure?
Marvy A. Finger: More park space downtown would be a tremendous asset. I’m convinced the city’s expanding green space is one of Houston’s strongest recent improvements. Organizations like the Kinder Foundation and Parks Department have done exemplary work building parks that attract residents to the urban core. Transforming the land beneath the Pierce Elevated into parkland would help reunite Midtown and downtown and further improve walkability and livability in the city center.
Realty News Report: What draws tenants to downtown residential towers?
Marvy A. Finger: Walkability is the single biggest factor. It was surprising to discover at One Park Place that roughly 25% of about 650 residents own no car — they’ve sold their vehicles because they don’t need them. Easy access to daily needs and entertainment matters. The biggest gap downtown is grocery and retail options. At One Park Place, having Phoenicia Deli & Grocery — a gourmet food market — proves how vital local food retail is, and I expect more grocers to locate downtown over time. Pets are also a major consideration: about 55% of residents in our multifamily properties own pets, so parks and dog runs like those at Discovery Green are essential.
At 500 Crawford we’ve widened brick paver areas to create an extended dog run, which we expect will boost appeal even further. Walkability alone isn’t enough; you need destinations to walk to. Being on a true Main and Main location makes a huge difference — properties just one block off a primary corridor are often secondary in desirability. To attract more residents downtown, we need additional restaurants, retail, and job growth, not just events. When residents can easily reach shops, dining and entertainment within a few blocks, downtown living becomes significantly more appealing.