The City of Calgary is taking bold steps to revitalize its downtown core by converting vacant office space into a mix of residential, educational, and commercial uses. This Downtown Office Conversion initiative is a critical part of Calgary’s strategy to address the city’s high office vacancy rates while breathing new life into underutilized properties. These changes are expected to lead to immediate and long-term redevelopment; they could also result in real estate opportunities and market changes. Real estate professionals should be aware of these changes and watch closely for impacts.
One of the key features of Calgary’s revitalization efforts is the conversion of vacant office buildings into residential units. By increasing the number of homes in the downtown core, Calgary aims to boost its population density, creating a more vibrant, 24/7 community. This influx of residents offers a promising market for property managers, developers, and real estate agents alike. Eleven office-to-residential conversion projects are underway, with over 1,400 new housing units.
Educational Facilities
In addition to residential conversions, the city is encouraging the establishment of post-secondary institutions in the heart of downtown. By transforming empty office spaces into academic and research facilities, Calgary is not only attracting students and faculty to the area but also increasing the demand for supporting infrastructure.
Demolition and Redevelopment
The city is also focused on the demolition of outdated office buildings that no longer serve a functional purpose, paving the way for new developments. With grants covering up to 50% of demolition costs and additional funds for hazardous material removal, developers can help prepare prime downtown real estate for future projects, including mixed-use developments, hotels, or cultural venues.
Public-Private Partnerships
Calgary’s goal to remove 6 million square feet of vacant office space by 2031 hinges on substantial investment from both the public and private sectors. For every $1 the city invests in these programs, $3 in private investment is leveraged, creating significant opportunities for real estate investors and developers to participate in Calgary’s urban renewal. The City indicates that over $567 million in partner investments have already been secured.
Incentive Programs
Calgary has launched four financial incentive programs, as part of this initiative.
Downtown Post-Secondary Institution Incentive Program
This program offers grants of $50 per square foot, up to $15 million per property, for converting office spaces into educational facilities.
Downtown Office Demolition Incentive Program
For older, functionally obsolete office buildings, this program covers up to 50% of demolition costs, with additional incentives for asbestos abatement.
Downtown Calgary Development Incentive Program
Targeting the conversion of office space into residential units, hotels, and cultural spaces, this program offers financial backing for diverse redevelopment projects.
Plus 15 Fund Offset Program
Aimed at encouraging residential development within Calgary’s extensive Plus 15 pedestrian network, this program reimburses developers up to $1 million per project to offset contributions to the Plus 15 Fund.
