"Isn't looking" might be used in certain contexts, but there is no indication in the isolated example sentence that shows that the progressive is called for.
On Google, there are 757 examples of "building doesn't look," like these:
"¢ ...said, that building doesn't look straight. So I'm standing there. I'm looking at the building. It didn't look right, but, well, we'll go in, we'll see. " ... groups.google.com/group/sci.math/msg/587bb32317ffe03f
"Building isn't looking" has only nine examples, like these, but these are correct, too.
"¢ The parking lot belongs to this property owner, and this building isn't looking well kept either. What's the deal? Posted by J.P. at 9/02/2006 ... leucadia.blogspot.com/2006/09/keeping-leucadia-beautiful.html -
The examples above of "building isn't looking" could also be correctly stated as "building doesn't look." However, using "look," a linking verb, in the progressive is an example of perceiving the verb "look" as a new or temporary state.
The Grammar Exchange has recently had some discussions on this topic at
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