B.C. Housing Minister Ravi Kahlon says the province is willing to help investors convert Vancouver office buildings into rental apartments.

“We are certainly open to looking at that for both Victoria and Vancouver,” he told Global News.

But Kahlon is taking a wait-and-see approach as office market dynamics play out.

“I know in Calgary and Edmonton, they are in the 20% [vacancy] range, so it really makes sense there. … But I am not sure how much of a demand there is [in B.C.] at this stage,” he said.

The B.C. government has introduced new legislation designed to create more multi-family rental-housing developments near public transit. Many downtown Vancouver office buildings are located near rapid-transit stations.

But given the high costs associated with office conversions, investors would likely want financial help from the province or city before proceeding.

In the third quarter of 2023, downtown Vancouver office vacancy reached its highest point (11.9%) in almost two decades, according to Colliers. But rents remain elevated.