Calgary’s downtown office conversion program reopens to new opportunities

The City of Calgary is reopening its Downtown Office Conversion Program with updates that offer greater flexibility, respond to market demand and support new opportunities to transform underused office buildings into vibrant, purposeful spaces for Calgarians and visitors.

The program will accept funding applications from June 15 to July 27, 2026, with $25 million in City incentive funding available to eligible conversion projects.

Updates to the program 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. These changes are intended to foster a more diverse and sustainable downtown, while encouraging innovation from building owners and developers.

Calgary’s office conversion efforts are already delivering measurable results. Twenty-one incentivized conversion projects have removed 2.7 million square feet of office space from the market and generated over $14 million in estimated tax uplift. Of those 21, eight completed projects have converted 925,000 square feet of space into nearly 800 homes and 226 hotel rooms.

“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.”

The updated program reflects findings from a comprehensive review undertaken in collaboration with Calgary Economic Development’s Real Estate Sector Advisory Committee. The review determined that 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, The City invites building owners and developers to explore new opportunities to contribute to Calgary’s evolving downtown. Find program details and learn more about how The City and its partners are shaping a greater downtown at Calgary.ca/DTS

About The City of Calgary’s Downtown Strategy: Downtown is the economic and cultural heart of Calgary. It’s our central hub for business, innovation, and creativity. Calgary needs a strong core to grow our economy, create jobs and fund the City services we rely on every day. We are working to address the challenges downtown is facing and transform vacancy to vibrancy. 

Courtesy: The City of Calgary Newsroom