Calgary is reopening its downtown office conversion program, this year with added flexibility to respond to different market demand, though with less cash to do it.
Calgary’s downtown office conversion program reopened, and is now accepting applications until July 27, 2026, with $25 million available to help fund eligible projects.
This year, there’s an increased incentive rate for hotel conversions, jumping from $60 to $75 per square foot, plus a new competitive bid process for student and senior housing, co-living models and educational institutions, according to the City of Calgary.
“The Downtown Office Conversion Program is delivering real results for Calgary,” said Thom Mahler, 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.”
Councillors had tried to kill $40 million in downtown office conversion program funding in the 2026 budget adjustment.
“I’d rather knock that old building down and build a park. If you want people coming downtown, we need parks and grocery stores and dog walks and all sorts of nice things,” Ward 13 Coun. Dan McLean told LWC back in late November 2025.
“That’s when the private sector is supposed to come in and say, ‘Here’s an opportunity. I can buy this building for cheap and turn it into condos and make money.’”
Council ultimately rejected that motion. Instead, the value was dropped to $35 million, with $10 million set aside for a non-market conversion program.
That leaves the remaining $25 million on the table in this round of funding.
According to the City of Calgary, the changes to this year’s program are a reflection of ongoing conversations with Calgary Economic Development’s Real Estate Sector Advisory Committee.
“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.”
More program details are available at Calgary.ca/dts.
