Calgary Announces Urgent Conversion of 9 Office Buildings to Homes

UPDATE: The City of Calgary has just announced an urgent plan to convert **nine vacant office buildings** into housing, creating nearly **1,000 new homes** in the downtown area. This initiative is part of a broader strategy to revitalize the city and combat its high office vacancy rates, which currently sit at **30 percent**.

The announcement was made public earlier today, marking a significant expansion of Calgary’s downtown office conversion program. To date, the city has initiated **21 projects**, aiming to repurpose a total of **3,000 homes** from underused office spaces. Mayor **Jeromy Farkas** emphasized the need for this transformation, stating, “We are proving every single day that downtowns can evolve from traditional office districts into resilient mixed-use neighborhoods where people can live, work, learn, and, most importantly, connect.”

Among the notable conversions, the former **TransAlta headquarters** on **12th Avenue** is set to be transformed into **153 residential units**, with plans for an additional tower, bringing the total to **488 homes**. The urgency of this project underscores Calgary’s ongoing struggle with high office vacancies following the **2014 oil market crash**, which significantly reduced downtown occupancy.

The city’s **Downtown Calgary Development Incentive Program** plays a crucial role in these conversions, providing funding to property owners to facilitate the transformation of vacant office spaces into residential and hospitality units. The program has seen over **$200 million** invested since its inception, with returns exceeding **$800 million** from the private sector. As part of the proposed **2026 municipal budget**, an additional **$40 million** is allocated to continue supporting these vital conversions.

The city aims to repurpose **six million square feet** of vacant office space by **2031**, with the current projects set to eliminate just under **three million square feet** from the market. **Alecia Peters**, the manager of downtown business strategy, remains optimistic about reducing the office vacancy rate to **20 percent** by the target date.

Notably, **Ian Pinchin**, director of development at **Crestpoint Real Estate Investments**, which is overseeing the TransAlta project, remarked, “Knowing our costs and the incentive expectations up front has allowed us to reduce uncertainty.” The hope is to complete the conversions by **summer 2027**.

The urgency of these projects is not just about addressing vacant office space; it’s also about enhancing livability in downtown Calgary. **Ward 8 Coun. Nathaniel Schmidt** pointed out the positive implications for public safety and business vitality, saying, “This has positive effects for some of the big issues that we’re facing here, including public safety and business closures.”

As these developments unfold, they are set to reshape Calgary’s urban landscape, providing much-needed housing while stimulating local businesses. The city is actively encouraging developers to continue this momentum, drawing inspiration from successful revitalization efforts in cities like **Kitchener** and **Waterloo** in Ontario.

Calgary’s commitment to transforming its downtown is evident, and as **Mark Garner**, executive director of the Calgary Downtown Association, noted, “To stop this now would be a travesty.”

Stay tuned for further updates as these conversions progress and impact Calgary’s skyline and community dynamics.