Creating Community, From Crisis to Transformation: Calgary Turns 30% Office Vacancy Surge into a Bold Residential Revival Amid Oil and Gas Collapse

During my recent trip to Canada, I witnessed first hand how Calgary tackled a startling increase in office vacancy to solve a residential crisis. As downtown office vacancies surged from 1% to over 30% due to the oil and gas crisis, Calgary turned the challenge into an opportunity by transforming those spaces into residential units.

Incentive Program: Launched in 2021, Calgary introduced a program offering developers $75 per square foot to convert office spaces into residential units. This initiative stems from insights shared by the development community regarding the economics of their projects, demonstrating to government leaders that the increase in property tax revenue will significantly surpass Calgary’s initial investment. As a result, Calgary is now contemplating a second phase of this incentive.

Project Approvals: The program has resulted in 13 approved conversion projects, with four more under review.

First Project: The initial conversion of a 10-story office building into 112 apartments is nearly complete and expected to open soon.

National Housing Crisis: Canada faces a significant housing shortage, with an estimated need for 3.5 million new units by the end of the decade.

Wider Impact: The program has attracted interest from developers across Canada and the United states, indicating that with government incentives, office-to-residential conversions can revitalize downtowns and help address housing shortages.

Conclusion: While not a complete solution, these conversions can significantly contribute to solving the housing crisis and improving urban vitality. This program exemplifies the benefits of collaboration between government and the private sector.

Source: TCN Conference October 2024 and
http://ctvnews.ca/calgary-transforms-old-offices-to-apartments-experts-say-other-cities-should-follow-1.6714948