Calgary's office conversions show no signs of slowing down

Calgary is a North American leader in converting vacant office towers into residential units, and these conversion projects show no signs of slowing. A softer rental market plus elevated inflation and interest rates raise financing and demand risks for developers, making some projects potentially risky. Nonetheless, the city and several builders are continuing to move ahead with conversions despite those headwinds.

Analysis

Calgary is a North American leader in converting vacant office towers into residential units, and these conversion projects show no signs of slowing. A softer rental market plus elevated inflation and interest rates raise financing and demand risks for developers, making some projects potentially risky. Nonetheless, the city and several builders are continuing to move ahead with conversions despite those headwinds.