A commercial renovation changes a building that already exists, usually while some or all of it stays in use. Kay2 Commercial is a commercial renovation contractor in Calgary for building owners, landlords and businesses: lobby and common-area upgrades, washroom renovations, demising large units into smaller ones, building-system replacements and full repositioning of older properties. Renovations differ from new fit-outs in one important way: the building has a history, and some of it is hidden until the walls are opened.
Types of commercial renovation
The renovation work we take on falls into a few groups:
- Common areas and lobbies: new finishes, lighting, entrances and wayfinding to help a building lease up or keep its tenants.
- Washrooms: renovating or adding washrooms, often with barrier-free upgrades at the same time.
- Demising: splitting a large unit into smaller ones with new demising walls, separate services and new storefronts, or combining units into one.
- Building systems: replacing rooftop units, upgrading electrical services, adding or modifying sprinklers and fire alarm systems.
- Exterior: storefront and entrance replacements, new canopies and façade upgrades.
- Repositioning: changing what a building is used for, such as office to medical, retail to restaurant, or office to residential.
For interiors fitted out for a new tenant, see tenant improvements. For office floors specifically, see office fit-outs and renovations.
What makes renovation different from a new fit-out
In a new building or a clean shell, the conditions are known. In a renovation, they are partly hidden. Common surprises include undocumented plumbing and electrical, structure that does not match the original drawings, slabs that are harder to cut than expected, and materials that need to be tested before they can be disturbed.
The way to control this is to look before pricing. On a renovation we ask for any existing drawings, walk the building with the owner or property manager, and where it matters, open the ceiling or a wall in a few places before the design is finished. A contingency is still needed, but it can be sized to the real unknowns rather than guessed.
Code upgrades a renovation can trigger
Alberta's building code applies to the work being done, and a renovation can require upgrades beyond the parts you planned to touch. Which upgrades apply depends on the scope, the use and the age of the building. The ones that come up most often are:
- Barrier-free access to and within the renovated area, including entrances, washrooms and the path of travel.
- Exits and fire separations, particularly when units are demised, combined or change use.
- Sprinklers and fire alarm devices to match a new layout or ceiling.
- Energy requirements for new or replaced building envelope, lighting and mechanical systems.
A change of use, such as office to medical or retail to restaurant, also needs a Change of Use development permit before the building permit. We identify these requirements during preconstruction, so they are in the budget from the start rather than raised by the plans examiner.
Hazardous materials in older buildings
Buildings constructed before the 1990s may contain asbestos in drywall compound, floor tiles, pipe insulation, ceiling tiles or fireproofing, and lead in older paint. Alberta's occupational health and safety rules require these materials to be identified before work that could disturb them, and removed by qualified abatement contractors when they will be.
We arrange a hazardous materials assessment early on any older building, so abatement is priced, scheduled and completed before the main renovation starts, not discovered halfway through.
Renovating an occupied building
Most commercial renovations happen in buildings that stay open. Tenants keep trading, the lobby stays in use and the parking lot stays full. Planning for that is part of the job:
- Phasing the work so that each area is closed for as short a time as possible.
- Scheduling noisy, dusty or disruptive work outside business hours where needed.
- Keeping exits, fire protection and accessible routes working throughout.
- Hoarding, dust control and floor protection in shared areas.
- Coordinating shutdowns of power, water or fire systems with the property manager and tenants in advance.
On larger or longer phased renovations, construction management can give the owner more control over each phase and its trade packages.
Cost of commercial renovation in Calgary
Renovation costs vary more than new fit-out costs, because the starting condition varies. These planning ranges for Calgary, as of 2026, are for interior work:
| Type of renovation | Planning range (as of 2026, varies by scope) |
|---|---|
| Light (paint, flooring, minor partitions, lighting) | $120–180 per sq ft |
| Medium (new layout, washrooms, HVAC changes) | $180–260 per sq ft |
| Office floor average (Cushman & Wakefield, 2026) | $181.10 per sq ft |
| Medical or dental conversion | $200–400+ per sq ft |
What pushes a renovation up its range is usually what is hidden: abatement, code upgrades triggered by the work, and building services that cannot support the new use. Finishes matter less than those three.
Downtown office conversions
Office-to-residential conversion is reshaping downtown Calgary. The City's Downtown Development Incentive Program contributes $75 per square foot toward converting vacant office space, with a goal of removing 6 million square feet of empty office by 2031. These projects bring their own challenges: new plumbing stacks through every floor, new exits and fire separations, and the logistics of working downtown. Our commercial construction page has more on the program.
Commercial renovation questions
Does a commercial renovation need a building permit in Calgary?
Yes, in almost all cases. Any alteration to a commercial interior needs a building permit, and a change of use also needs a Change of Use development permit. Some simple scopes, such as demising walls and office interior renovations, qualify for the City's quick-release permits.
Can a building stay open during a renovation?
Usually, yes. The work is phased, disruptive tasks are scheduled around business hours, and exits and fire protection stay working throughout.
Do I need an asbestos survey before renovating?
If the building is older and the work will disturb walls, ceilings, floors or insulation, a hazardous materials assessment is needed first. It is required by Alberta occupational health and safety rules and protects everyone in the building.
How much contingency should a renovation carry?
More than a new fit-out, because of hidden conditions. The right figure depends on the building's age, how much is known about it and how much of it will be opened. Investigating before the design is finished lets the contingency be smaller and better aimed.
Will renovating force me to upgrade the whole building to current code?
Not usually the whole building. The code applies to the work being done, but the renovated area, the route to it and some building systems may need upgrades. We identify these during preconstruction so they are part of the budget.