Calgary's office spaces are being converted to housing to meet rising demand
Calgary's population is expected to surge in the coming years, and the conversion of downtown office spaces into residential rentals may help address the increasing housing demand. According to the Re/Max 2024 Commercial Real Estate Report, Calgary leads the country in conversion projects in the downtown area, with 17 former office spaces already transformed into residential rentals.
By 2026, over 11,000 people are projected to reside in downtown Calgary, necessitating more such conversion projects. Additionally, unused office spaces may be repurposed into hotels and colleges with residential facilities.
These conversion projects have positively impacted the local economy, increasing foot traffic and boosting interest in downtown retail spaces. Calgary is one of the few markets in Canada experiencing a decline in office space availability, down to 23.2% in the first quarter of 2024, due to hybrid work trends and conversion efforts.
The report highlights that multi-family purpose-built rentals are the top-performing asset in Calgary, with a vacancy rate of just 1.4% as of October 2023. Retail space demand is also strong, particularly for medical centers and health and wellness businesses. Strip plazas are attracting interest for both retail and multi-family uses.
Overall, the report indicates positive economic prospects for Calgary, driven by population growth, business expansion, and economic prosperity.