Calgary office space conversions spike ahead of population boom

The Calgary population is expected to explode over the next few years, and downtown office space conversions might help ease housing demands. 

According to the Re/Max 2024 Commercial Real Estate Report, Calgary is leading the country in conversion projects in the downtown core. All in all, 17 former office spaces have been converted into residential rentals.

Over 11,000 people are expected to live in downtown Calgary by 2026, which will lead to an increased need for similar projects in the future. Other possibilities for unused office space in the area include hotels and colleges with built-in residence options.

The conversion projects have also had positive impacts on the local economy with increased foot traffic leading to more interest in retail space in the downtown core.

The city is one of the only markets in the country to see a decline in office space, sitting at 23.2% in the first quarter of 2024. The decline is partially the result of increased hybrid work in addition to conversion efforts.

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Other local findings from the report include naming multi-family purpose-built rentals as the top-performing asset in the city, with only a 1.4% vacancy rate as of October 2023.

Demand for retail space is also doing well, in a commercial real estate market currently favoured by a positive economic outlook. In particular, spaces for medical centres and health and wellness businesses are in high demand. 

Strip plazas are also seeing a lot of interest with potential for both retail and multi-family purposes.

The report is good news for Calgary thanks to population growth, business expansion and overall economic prosperity.