A VACANT OFFICE CONVERSION BOOM

Posted on Nov 21, 2025 in Development Spotlight

Downtown Calgary is in the middle of a major identity shift — and it’s not just about skyline views. What was once one of Canada’s emptiest office cores is steadily transforming into a mixed-use, residential-friendly community. Thanks to the City’s Downtown Development Incentive Program (DCDIP), 21 office buildings are now approved or completed for conversion, together creating over 4,200 new homes, a hotel, a hostel, and transforming 2.68 million square feet of unused office space.

It’s an ambitious move aimed at addressing two of Calgary’s most significant urban challenges: persistent office vacancies and the need for more housing in the core. The program has already catalyzed more than $805 million in private investment, backed by a comparatively modest public contribution — including federal support from the Housing Accelerator Fund.

WHY IT MATTERS

For decades, Calgary’s downtown functioned mostly as a 9-to-5 commercial district. After work hours, the streets would empty, local businesses would struggle, and neighbourhood vibrancy would lag behind other major cities.

Office-to-residential conversions directly address this by bringing more people downtown — not just workers, but residents, visitors, students, and long-term tenants. More people living in the core means:

A steadier customer base for cafés, restaurants, and small businesses
More activity and natural surveillance (“eyes on the street”)
Revitalization of older buildings that would otherwise remain vacant

Each conversion adds density, life, and economic resilience to Calgary’s core.

THE 21 PROJECTS

A Snapshot of Downtown’s Transformation

Below is the complete list of all 21 office conversion projects supported through the Downtown Calgary Development Incentive Program. These include completed residential conversions, hotel projects, and active developments.

Full Project List (as of November 2025):

STANDOUT PROJECTS

These few examples illustrate the scale and diversity of the transformation:

Palliser One: A landmark downtown tower is now home to 424 residential units, one of the largest conversions in Canada.

Element Hotel: Calgary’s first office-to-hotel conversion, adding 226 suites, demonstrating how office reuse can extend beyond housing.

The Loft: A 55,000 sq ft conversion delivering 56 rental units — fully leased almost immediately after opening.

510 5th (Bluevale Capital): A newly completed residential conversion adding 128 new homes to the west end of downtown.

Together, these projects demonstrate that conversions are not one-off experiments — they’re becoming a cornerstone of Calgary’s long-term downtown strategy.

CHALLENGES & OPPORTUNITIES

Office conversions aren’t plug-and-play. To date, developers have encountered:

Structural retrofits in older buildings
Cost pressures from construction inflation
Floorplate limitations in 1970s–1990s towers
Complex permitting and design work

But the payoff is significant: renewed momentum downtown, diversified property use, and an emerging 24/7 urban neighbourhood.

Calgary’s early leadership — pivoting toward conversions long before other cities considered them — has earned attention from planners across North America seeking solutions to office vacancies post-pandemic.

LOOKING AHEAD

With 21 projects underway or completed, Calgary is already nearly halfway to its 2031 goal of removing 6 million sq ft of vacant office space. Future waves may include:

More purpose-built rentals
Student housing
Additional hotel conversions
Cultural or community-oriented spaces
Affordable housing through federal partnerships

As cranes disappear and lights switch on in newly occupied buildings, downtown Calgary will continue evolving into a district where people live, work, visit, and stay.

OUR FINAL THOUGHTS

Calgary isn’t just filling empty offices — it’s reimagining the possibilities of its urban core. This is more than redevelopment. It’s renewal. It’s a shift in identity. It’s downtown Calgary’s comeback story, one building at a time.

Want to explore what living downtown could look like for you? Let's talk!

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