Office-to-residential conversions have gained momentum in Canada since the COVID-19 pandemic, as the shift to hybrid working models continues to leave many commercial spaces underused. This ongoing trend has prompted many property owners and investors to explore alternative asset uses. While conversions aren’t feasible for every office building, cities like Toronto, Montreal, Calgary, and Ottawa report increasing office vacancy rates, leading more property owners to look for creative ways to breathe new life into their real estate investments.

One company embracing the conversion trend is CLV Group in Ottawa. CEO Mike McGahan shared, “In the midst of the evolving housing crisis, innovative solutions are imperative now more than ever. We need to think outside the box, and we need to do it fast. The pandemic has impacted our downtown core, with a decline in foot traffic and an increase in office vacancies. Converting these buildings into apartments aligns with our vision to breathe new life into the heart of Ottawa. We’re heavily invested in contributing to a better future for our city and to doing it in a highly sustainable way.”

The Slayte at 473 Albert Street

The Slayte is one of Ottawa’s first office-to-residential conversions, and according to McGahan was a major success. Construction on the project began in 2021 when CLV Group took a vacant 1970s office building and transformed it into the modern residential community its residents now enjoy today. By reusing the existing structure instead of starting from scratch, the project saved around 4,575 metric tons of carbon, representing a 55 percent reduction compared to demolishing and beginning anew.

“The Slayte is a great example of how creative design and sustainability can work hand in hand to meet both housing needs and environmental goals,” McGahan said.

Located 250 metres from Lyon Station, The Slayte residents have convenient access to Ottawa’s LRT network. Though the station is already in service, an expansion is scheduled for completion this year, bringing several new stops, including the Ottawa International Airport, to commuters using the line. On-site amenities at The Slayte include a business centre, parcel storage, gym facility, outdoor seating areas, a large rooftop terrace with a hot tub, BBQs and fire pits, and a spacious rooftop lounge.

Ongoing: 360 Laurier Avenue West

CLV’s latest conversion project on Laurier Avenue West is now underway, and the firm anticipates construction work will begin in summer 2025. Similar to The Slayte, what was formerly a vacant office building is being transformed into residential suites focusing on modern, high-quality design and optimizing existing features. The project is set to save over 550 truckloads of concrete; it will benefit from a significant reduction in greenhouse gas emissions compared to a similar-sized development built from the ground up.

Converting the building instead of tearing it down also allows CLV Group to recycle existing materials rather than send them to the landfill. Any items that can be repurposed or re-used will be donated to various local charities and trade schools.

“This project reflects an ongoing shift towards sustainable urban development,” said Roch Chevrier, Regional VP of Construction at CLV Group Developments. “By repurposing existing structures, we’re able to reduce the environmental impact and bring rental apartments to market faster, while also playing a small part in reactivating our downtown core.”

The 11-storey building will ultimately offer 139 rental suites, including studios, 1-bedroom and 2-bedroom units, and an exciting lineup of amenity spaces. CLV Group is reserving the ground floor commercial space for rent by small or local businesses to cultivate a modern, active, mixed-use community.

“The benefits of an office conversion extend far beyond construction,” concluded Oz Drewniak, President of CLV Group Developments. “We’re doing this because Ottawa needs vibrant, pedestrian-friendly spaces that foster community engagement, support local businesses, and encourage people to use the City of Ottawa’s public transit system. It creates a massive domino effect.”

What’s driving the conversion trend?

In the last few years since the pandemic, governments at various levels have introduced incentives to promote these conversions. For instance, the federal government announced a full GST rebate for new residential rental property construction and converting commercial buildings to residential in September 2023.

Meanwhile, municipal authorities are keen on promoting urban densification and addressing the issue of vacant office buildings. Housing experts note that converting these properties into residential units helps preserve asset value and taps into the growing residential real estate market.

While the idea remains popular, it isn’t always straightforward. Developers must navigate zoning laws, building codes, and the suitability of the existing structures for residential use. Factors influencing feasibility include building size, plumbing, layout, fire escapes, stairwell placement and more.

For more information on CLV Group’s office-to-residential conversions, please visit: www.clvdevelopments.com

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