More Detail: Capital Improvements

Capital Improvements & Modernization for Existing Mid-Rise Office Buildings in North Texas

Capital improvements and modernization projects are essential for keeping existing mid-rise office buildings competitive in the rapidly evolving North Texas commercial real estate market. Whether located in Dallas, Ft. Worth, Plano, Richardson, Addison, Frisco, Las Colinas, or Arlington, mid-rise buildings built from the 1980s to the early 2000s are now aging relative to new Class A construction. Owners increasingly invest in modernization projects to increase occupancy rates, achieve higher lease values, meet tenant expectations, reduce operational costs, and improve long-term asset value.

This page provides an in-depth breakdown of capital improvement types, modernization strategies, and system-level upgrades specific to mid-rise office buildings in North Texas.

1. MAJOR CAPITAL IMPROVEMENT CATEGORIES

Capital improvements generally fall into two categories:

1. Asset Preservation: Protecting building integrity and performance.
2. Asset Enhancement: Improving building appearance, features, and tenant experience.

Both must be tailored to the building’s existing systems, structural capacity, and operational environment.

2. LOBBY & COMMON AREA MODERNIZATION

Lobbies and common areas are the heart of a building’s brand identity. Modern tenants expect a high-quality experience when entering their workspace.

A. Lobby Modernization Components

Flooring Upgrades

• Stone tile (granite, marble, porcelain)
• Polished concrete
• Large-format ceramic tile

North Texas buildings often replace aging ceramic tile or carpet with durable, modern finishes.

Wall Treatments

• Wood veneer panels
• Tile or stone cladding
• Architectural wallcoverings
• Metal accent systems

Lighting Enhancements

• LED downlights
• Linear recessed fixtures
• Cove lighting
• High-CRI lighting for premium finish presentation

Reception / Security Desk Upgrades

• Integrated millwork
• Electronic guest verification systems
• Metal and glass accents

Furniture & Amenities

• Collaborative seating areas
• Shared coffee bars
• Digital directories

B. Elevator Lobbies & Corridors

These areas often require:

• Consistent finish upgrades
• New ceiling systems
• Updated lighting
• Modernized signage
• Carpet or LVT replacement

High-traffic corridors must use durable, easy-to-maintain materials compatible with North Texas humidity and temperature variations.

3. ELEVATOR MODERNIZATION

Elevators are a major capital improvement cost for mid-rise buildings and significantly affect tenant satisfaction.

A. Cab Modernization

Includes:

• New wall panels
• LED lighting
• Updated flooring
• Stainless steel or custom finishes

Texas-Specific Needs:

Elevator cabs must meet TDLR requirements for safety and accessibility.

B. Mechanical & Electrical Upgrades

Components:

• New controllers
• Regenerative drives
• Updated door operators
• Modern signal fixtures

Modernized systems improve speed, reliability, and energy usage—critical in hot climates where equipment must handle thermal loads.

C. Destination Dispatch

Some mid-rise buildings adopt destination dispatch systems to improve traffic flow during peak times.

4. RESTROOM MODERNIZATION

Restroom upgrades increase building value and reduce water usage.

A. Typical Improvements

• Porcelain or ceramic tile
• Quartz or solid-surface vanities
• Automatic faucets
• LED lighting
• New partitions (phenolic or solid plastic)

B. Plumbing & Fixture Upgrades

North Texas municipalities encourage or require:

• Low-flow urinals
• EPA WaterSense toilets
• Touchless flush valves

5. BUILDING SYSTEM UPGRADES (HVAC, ELECTRICAL, PLUMBING)

These upgrades often improve tenant comfort and reduce operational costs.

A. Mechanical System Improvements

Examples:

• Replacing aging RTUs
• Upgrading chillers or boilers
• Installing VFDs (Variable Frequency Drives)
• Rebalancing or redesigning duct systems

High heat in North Texas accelerates wear on HVAC equipment, making upgrades essential.

B. Controls & Efficiency Enhancements

Upgrading to a modern Building Automation System (BAS) offers:

• Remote monitoring
• Energy tracking
• Predictive maintenance alerts

C. Electrical Infrastructure

Upgrades may include:

• LED lighting retrofits
• Panel replacements
• New transformers
• Generator modernizations

Many buildings require new power distribution to support tenant servers, EV charging, and amenity spaces.

D. Plumbing & Domestic Water System Upgrades

Common improvements:

• New water heaters (often tankless or high-efficiency systems)
• Replacement of aging galvanized piping
• Booster pump systems
• Water filtration upgrades

6. ROOFING & ENVELOPE CAPITAL IMPROVEMENTS

Envelope improvements extend the life of a building and reduce energy costs.

A. Roof Replacement Projects

Most mid-rise buildings undergo roof replacement every 20–25 years. Upgrades usually include:

• Transitioning to TPO or PVC
• Adding insulation for improved energy performance
• Upgrading flashings and curbs
• Installing hail-resistant cover boards

B. Façade Refresh

Typical façade modernization strategies:

• New paint schemes
• Accent metal panels
• Updated canopies
• Enhanced storefront entries
• Replacing aging sealants

C. Window & Glazing Upgrades

North Texas sun exposure often drives owners to:

• Replace older glazing with low-E insulated glass
• Install solar shading fins or films
• Correct deteriorated gaskets and mullions

7. SITE & LANDSCAPE MODERNIZATION

Modern tenants value attractive and functional outdoor environments.

A. Landscaping Overhauls

Includes:

• Drought-tolerant plants
• Updated irrigation systems
• Hardscape refurbishment
• Outdoor seating

B. Parking Lot Enhancements

Includes:

• Lighting upgrades
• Seal coating
• Restriping
• Addition of EV charging stations
• Removing or replacing failing pavement sections

C. Signage & Branding

Upgraded signage helps reposition aging buildings. Owners frequently add:

• Illuminated monument signs
• New building ID signage
• Wayfinding packages
• Digital directory systems

8. AMENITY SPACE ADDITIONS

Modernization often includes adding new amenities to compete with newer buildings.

A. Fitness Centers

Requires:

• Reinforced flooring
• HVAC upgrades
• Shower and locker facilities
• Sound attenuation

B. Tenant Lounges & Collaboration Spaces

Often include:

• Café-style seating
• Pantry areas
• Soft seating zones
• Wi-Fi and charging stations

C. Conference Centers

Shared conference facilities may include:

• Advanced AV systems
• Movable partitions
• Acoustics management
• Enhanced lighting

D. Outdoor Amenities

Examples:

• Shaded seating
• Fire pits
• Walking trails
• Outdoor Wi-Fi

9. ENERGY EFFICIENCY UPGRADES

Owners often pursue energy improvements for cost savings and potential incentives.

A. LED Lighting Retrofits

B. High-Efficiency RTUs and Chillers

C. Low-E Window Replacements

D. Roof Insulation Increases

E. Smart Metering & Load Management

10. PHASING, SCHEDULING & TENANT IMPACT MINIMIZATION

Capital improvements must be coordinated carefully in occupied buildings.

A. Phasing Plans

Work must be sequenced around:

• Tenant hours
• Egress requirements
• HVAC shutdown windows

B. Communication

Owners benefit from:

• Regular tenant notifications
• Construction schedules
• Signage and temporary routing

C. Safety & Access Control

Includes:

• Barricades and protection barriers
• Floor-by-floor access control
• Dust and noise mitigation