The City of Calgary has unveiled details about nine new initiatives under its downtown office conversion plan, resulting in almost 1,000 residential units and expanding the total project count to 21. Earlier this year, Calgary introduced these conversions as part of 10 newly endorsed projects, including the renovation of the former Barclay Centre on Sixth Avenue, without disclosing their specific locations.
Of the nine new projects, eight will be transformed into residential spaces across the Downtown Core, West End, and Beltline areas, while the remaining project will be developed as a hostel. One of the ongoing projects involves converting the former TransAlta headquarters on 12th Avenue into 153 residential units, with plans for an additional tower across from it to provide a total of 488 homes.
These initiatives are facilitated through the Downtown Calgary Development Incentive Program, which offers financial support to property owners to convert vacant office spaces into housing and hospitality units. Mayor Jeromy Farkas emphasized the city’s capability to evolve traditional office districts into mixed-use communities, encouraging connectivity.
Crestpoint Real Estate Investments is managing the TransAlta conversion, with the director of development, Ian Pinchin, highlighting the program’s role in reducing uncertainties and enabling simultaneous tower development. The company aims to complete the tower conversion by summer 2027, while timelines for the other eight projects are pending.
The incentive program targets repurposing six million square feet of vacant office space by 2031, with the current 21 projects set to eliminate nearly three million square feet and generate approximately 3,000 homes. Despite high office vacancy rates in Calgary following an oil market downturn in 2014, the city is optimistic about reducing the vacancy rate to around 20% by 2031.
City officials and stakeholders underscore the importance of these conversions in addressing public safety, business sustainability, and transit accessibility, aiming to enhance downtown livability. Continued investment in office conversions is seen as crucial for attracting residents and businesses, drawing inspiration from cities like Kitchener and Waterloo in Ontario.
The success of the program has spurred further financial commitments, with over $200 million already invested and a potential additional $40 million allocation in the upcoming budget. Farkas highlighted the strong developer interest and emphasized the program’s oversubscription, indicating a promising future for downtown revitalization efforts.