This paper argues for a paradigm shift in heritage conservation—one that integrates affective connections, digital technologies, and circular economy principles to respond to the complex realities of urban transformation. Using the case of the Dennys Lascelles Wool Store in Geelong, this position paper contends that current preservation models, rooted in the Authoritative Heritage Discourse (AHD), are inadequate for addressing the nuanced value of industrial heritage, particularly when physical structures are altered or lost. The demolition of the Wool Store’s iconic bow truss structure exemplifies the tension between rapid urban development and heritage conservation. While the physical element has been removed, the site’s cultural and emotional resonance persists, underscoring the role of affect in shaping collective memory and place identity. This paper positions affect as a critical component of heritage discourse—one that expands beyond materiality to include sensory and emotional dimensions often overlooked by institutional frameworks. Digital heritage technologies offer powerful tools to document, represent, and interpret both tangible and intangible aspects of cultural heritage. In the case of the Wool Store, these tools not only preserve what has been lost but also invite public engagement and reinterpretation. However, preservation should not end with digital replication. A circular economy approach calls for the adaptive reuse of remaining structures, allowing historic sites to evolve functionally while retaining their significance.