The City of Toronto has launched an office space needs study to assess the pros and cons of conversions to residential use.

The city is looking at ways to offset a large amount of vacant space that help find ways to offset a large amount of vacant space. According to Cushman & Wakefield, Toronto office availability stood at 17.3% in the first quarter of 2024 and is forecasted to trend higher throughout the year.

The study’s first phase is complete and an online public-consultation meeting will be held May 15, starting at 6:30 p.m. local time, says a city webpage

“The city is undertaking a study to analyze current office market conditions, understand the benefits and risks of converting office space to alternative uses, and explore policy options that would balance office needs in the short-term and long-term, while ensuring the city’s economic role remains competitive and resilient,” states the city on the webpage.

The study’s second phase also includes includes further stakeholder and public consultation, projections, financial feasibility analysis and policy options.

The study comes after a potential city office-conversion program moved forward in November 2023. The city’s planning and housing committee endorsed a motion from Coun. Brad Bradford to develop a downtown incentive program similar to one used in Calgary.

Several North American jurisdictions are looking to emulate the highly popular Calgary program, which the city has paused after exhausting the $150-million budget for it.