How Calgary’s Office-to-Residential Conversions Are Revitalizing Downtown

Calgary is undergoing a major downtown transformation, thanks to an ambitious office-to-residential conversion initiative. At the heart of this effort is the Downtown Calgary Development Incentive Program, introduced in 2021. Designed to tackle soaring office vacancy rates—once over 30%—and a growing need for housing, the program offers financial support to developers converting empty office towers into residential, hotel, post-secondary, or cultural spaces. It’s a bold plan to breathe new life into Calgary’s core while addressing some of the city’s most pressing urban challenges.

Key Projects & Impact

The Cornerstone (909 5 Ave SW)

The first project completed under the incentive program, The Cornerstone introduced 112 two- and three-bedroom rental apartments to the downtown. Approximately 40% of the units are affordable and rented at 20% below market value. This project has already brought over 300 new residents downtown, with a mixed-use design that includes commercial and coworking spaces. It sets a strong precedent for family-friendly, community-oriented downtown living.

The Taylor Building

Located in the Beltline, this former office space is being converted into 85 residential units, supported by a $4.8 million city grant. The project will help increase density in a walkable, amenity-rich neighbourhood.

The Loft

Another Beltline conversion, this development will transform over 52,000 square feet of office space into 55 homes with support from a $3.9 million grant.

Dominion Centre

This large-scale project will convert 100,000 square feet of office space into 132 residential units, with at least 25% offered at below-market rents. It also includes modern climate resiliency measures, positioning it as a model for sustainable adaptive reuse.

Palliser One

One of the largest approved conversions to date, Palliser One will bring 395 new homes to the core by repurposing 415,000 square feet of vacant office space. A quarter of these units will be offered at affordable rental rates.

Why This Matters for Calgary

Downtown Revitalization

Turning unused office buildings into homes creates vibrant, livable downtown communities. More residents mean more foot traffic, more support for small businesses, and increased demand for local services. This is key to transforming Calgary’s core from a business-only district into a 24/7 neighbourhood.

Increased Housing Supply & Affordability

The conversion program will add over 1,500 housing units to the downtown core, helping ease Calgary’s housing supply pressures. With a significant portion of units designated as affordable, the program supports both market and non-market housing needs.

Environmental Sustainability

Reusing office buildings reduces demolition waste and the environmental impact of new construction. Projects like Dominion Centre are incorporating energy-efficient upgrades, positioning downtown Calgary as a leader in sustainable urban redevelopment.

Economic Benefits

More residents downtown generate more economic activity—from shopping and dining to public transit use. The increased population also expands the property tax base, helping fund city services and infrastructure.

Challenges & Considerations

Rising Construction Costs

High inflation and supply chain issues have increased the cost of materials and labour, making some conversions difficult even with the $75 per square foot incentive.

Technical Complexity

Office buildings were never designed to be homes. Developers must navigate complex retrofits to install plumbing, ventilation, balconies, and accessibility features. These updates can add significant time and cost to projects.

Affordability Oversight

While many projects include affordable housing, affordability targets are not always mandatory. Some critics argue the program could do more to ensure that public investment delivers long-term housing benefits to Calgarians most in need.

The Road Ahead

So far, the City of Calgary has approved over $147 million in incentives, unlocking more than $429 million in private investment—a return of nearly 3:1. Additional funding from the federal Housing Accelerator Fund, including a $52.5 million grant, has helped clear the backlog of project applications and expand the program's scope.

Recent changes to the incentive program have opened the door for hotel, academic, and cultural conversions as well, offering more flexibility to meet the evolving needs of the downtown core.

Final Thoughts

Calgary’s office-to-residential conversion program is proving to be a smart, forward-thinking solution to urban decline, housing demand, and climate impact. By turning empty towers into vibrant homes, Calgary is reshaping its downtown into a more inclusive, dynamic, and livable neighbourhood.

As the city continues to adapt the program to meet economic realities and community needs, the key will be balance: supporting innovation while ensuring that affordability, sustainability, and equity remain at the forefront of Calgary’s downtown revival.

Whether you’re looking to buy a home in one of Calgary’s most walkable neighbourhoods or sell your property for top dollar, I’m here to guide you through every step.

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