The City of Calgary has unveiled details about nine fresh projects under its downtown office conversion initiative, set to generate nearly 1,000 residences, elevating the total project count to 21. These conversions were initially introduced earlier this year as part of a batch of 10 newly sanctioned projects, including the renovation plans for the former Barclay Centre on Sixth Avenue.
Eight of the upcoming projects are slated for transformation into residential spaces across the Downtown Core, West End, and Beltline areas, with the remaining project designated for a hostel. Among the new endeavors already in progress is the conversion of the former TransAlta headquarters on 12th Avenue, where a tower is being revamped into 153 residential units, alongside plans for constructing an additional tower opposite, totaling 488 homes.
All projects stem from the city’s Downtown Calgary Development Incentive Program, which offers financial support to property owners for repurposing vacant office spaces into residential and hospitality units. Mayor Jeromy Farkas emphasized the program’s role in the evolution of downtown areas into diverse mixed-use neighborhoods during a recent press briefing.
Crestpoint Real Estate Investments is overseeing the TransAlta conversion project. Ian Pinchin, the company’s director of development, noted the risks associated with repurposing existing spaces but praised the streamlined process facilitated by the incentive program. Pinchin expressed confidence in completing the tower’s transformation by the summer of 2027 and highlighted the company’s intent to develop two towers concurrently due to the program’s support.
In addressing high vacancy rates, the city aims to repurpose six million square feet of empty office space by 2031, with the current 21 projects accounting for nearly three million square feet reclaimed and the creation of close to 3,000 homes. Despite Calgary’s high office vacancy rates following the 2014 oil market downturn, the city remains optimistic about reducing the vacancy rate to around 20% by 2031, as outlined by Alecia Peters, the city’s manager of downtown business strategy and analytics.
Continued investment in office conversions is seen as vital for enhancing housing accessibility and fostering a vibrant downtown environment, according to Ward 8 Coun. Nathaniel Schmidt. Mark Garner, executive director of the Calgary Downtown Association, emphasized the importance of sustaining the program to attract residents and businesses, drawing parallels with successful revitalization efforts in other cities like Kitchener and Waterloo.
Mayor Farkas highlighted the city’s significant investments in the conversion program over the past four years, exceeding $200 million, which has consequently spurred over $800 million in private sector returns. Given the program’s success, Farkas revealed that city council would contemplate allocating an additional $40 million in the upcoming budget deliberations to meet the strong developer interest and future prospects.
The program’s popularity and positive outcomes underscore the city’s commitment to revitalizing downtown areas and fostering a thriving urban landscape.