Ontario Construction News staff writer
The City of Calgary is reopening its Downtown Office Conversion Program with updates that officials say offer greater flexibility, respond to market demand and support new opportunities to transform underused office buildings.
The program will accept funding applications until July 27, with $25 million in incentive funding available to eligible conversion projects.
Changes include an increased incentive rate for hotel conversions, from $60 to $75 per square foot of office space converted and the introduction of a competitive bid process to support a wider range of uses including student and senior housing, co-living models, life sciences, educational institutions, and cultural spaces.
The goal is to create a diverse and sustainable downtown, while encouraging innovation from building owners and developers.
“The Downtown Office Conversion Program is delivering real results for Calgary,” said Thom Mahler, The City’s Director of Downtown Strategy. “Five years into a ten-year plan, we’re nearly halfway to our goal of removing 6 million square feet of downtown office space. These updates build on that success and create new opportunities to transform underused office space into vibrant places for people to live, work and visit.”
Twenty-one incentivized projects have removed 2.7 million square feet of office space, with eight completed projects converting 925,000 square feet of space into about 800 homes and 226 hotel rooms.
A review in collaboration with Calgary Economic Development’s Real Estate Sector Advisory Committee showed the program’s core model remains effective and identified refinements to improve flexibility, transparency, and alignment with market conditions and Council priorities.
“These conversions are bringing more people and activity downtown, supporting vibrancy, safety, and a stronger tax base,” said Hannes Kovac, Co-Chair of the Real Estate Sector Advisory Committee. “This is a proven program, and these updates, shaped by industry insight and experience, will help maintain momentum and maximize long-term impact
As the program reopens, building owners and developers can find more information at Calgary.ca/DTS.
