In this episode of the Texas Land Guys Podcast, brothers Tom Dosch and Tim Dosch explore the concept of ”highest and best use” and explain why perfectly good buildings, including churches, office towers, malls, golf courses, and car dealerships, often get torn down because the land beneath them is worth more than the structures themselves. They share real-world examples from their brokerage careers, including a Tanglewood church redevelopment, the EDS/AT&T corporate campus demolition in Plano, and the industrial takeover of struggling malls across Texas.

The conversation dives into how changing demographics, technology, and consumer behavior are reshaping what uses make economic sense. They discuss why office conversions to multifamily rarely pencil out, how COVID accelerated trends already underway, and why some cities' zoning policies are trapping landowners in declining assets. Tim and Tom also explore the future impact of AI, self-driving cars, and Cybercabs on parking garages and car dealerships, and why land brokers must always think about what's changing rather than what's always been.

They wrap by discussing the ”recycling” of sites in Houston's unzoned environment, the transition of industrial areas like the Heights into townhomes and retail, and why understanding what developers want helps landowners capture maximum value. The episode closes with reflections on how quickly technology, from kerosene to electricity, can transform entire industries and land use patterns.

Key Takeaways

• Highest and best use is about recognizing when land is worth more than the improvements on it, making demolition the most economic decision.

• Churches are increasingly selling to developers as membership declines, buildings deteriorate, and urban land values soar.

• Old office buildings face a reckoning: newer buildings set leasing records while older ones trade at pennies on the dollar or get demolished.

• Converting office towers to multifamily is extremely expensive due to floor plates, plumbing, elevators, and window configurations.

• Retail is bifurcated: enclosed malls struggle while new big-box and lifestyle centers thrive in underserved suburban growth areas.

• Golf courses and car dealerships are prime redevelopment opportunities when deed restrictions don't prevent it.

• Technology (AI, autonomous vehicles, delivery apps) will continue to reshape what uses are viable and where.

• Land brokers must constantly ask: What is changing? What's moving the market? Where does that create opportunity?

In This Episode:

• [00:00] Intro and Father-Daughter Work Day

• [02:21] What ”Land” Really Means: Beyond Raw Dirt

• [06:24] The Tanglewood Church Redevelopment Story

• [09:49] Churches in Transition: COVID, Demographics, and Denominational Decline

• [13:31] The Secularization Trend and Germany's 10,000 Church Closures

• [17:27] DFW Office Distress: 30-70% Occupancy and Pennies on the Dollar

• [21:30] EDS/AT&T Campus in Plano: Demolish and Start Over

• [23:31] Zoning Challenges in Dallas, Irving, and Arlington

• [26:10] The Slumlord Scenario: Cities Forcing Obsolete Office

• [34:53] Golf Courses as Redevelopment Plays

• [38:14] The Future of Car Buying and Self-Driving Cars

• [42:35] Always Looking at the Future: What's Changing?

• [43:28] Kerosene to Electricity: Lessons in Rapid Transformation

• [45:08] How to Think About Value: Current Use vs. Dirt Value vs. Rezoned Potential

• [48:55] The Heights: Industrial-to-Residential Transition

• [50:27] Houston's No-Zoning Advantage

Resources and Links

Podcast

• https://podcasts.apple.com/us/podcast/welcome-to-the-texas-land-guys-podcast-the-art/id1788566687?i=1000682586353

• https://dmre.com/

Tim Dosch

• https://www.linkedin.com/in/tim-dosch-67a07899

• https://dmre.com/

• https://ascentinv.com/

• https://100xharvest.org/

Tom Dosch

• https://www.linkedin.com/in/tom-dosch-37263b3b/

• https://dmre.com/

• https://ascentinv.com/

• https://100xharvest.org/