Question Period Note: Optimizing Public Services and Procurement Canada’s real property portfolio

The post-pandemic environment represents an opportunity to incorporate new workplace arrangements and ensure more efficient use of the office portfolio while also increasing accessibility and reducing greenhouse gas emissions. Studies conducted prior to the pandemic indicated that 40% of Public Services and Procurement Canada’s space was underutilized.

• Public Services and Procurement Canada is committed to ensuring sound stewardship of the Government of Canada’s real property portfolio
  • Public Services and Procurement Canada is working with client departments and agencies to help them identify their future office needs as the Government of Canada continues its transition to a hybrid work model with greater use of unassigned office space and interdepartmental shared space
  • Plans include the disposal of surplus properties. As such, Public Services and Procurement Canada is actively seeking opportunities to accelerate and streamline the disposal of assets and has publicly released a list of ten surplus National Capital Region properties in May 2023.
  • Public Services and Procurement Canada is working closely with the Canada Lands Company, Infrastructure Canada and the Canada Mortgage and Housing Corporation to assess PSPC’s surplus and potentially surplus assets and to determine the extent to which they can be leveraged (through conversion, development or redevelopment) to support housing outcomes.

If pressed on current measures:

• Public Services and Procurement Canada is developing a long-term real estate portfolio plan to optimize the office space under our responsibility, lower operating costs and reduce greenhouse gas emissions., The plan also includes the disposal of assets that are no longer required
• Public Services and Procurement Canada's approach is evolving in line with the new hybrid workplace. Planning assumptions and investment timelines are being updated to reflect current realities, ensure office space is optimized and improve the overall condition and performance of federal buildings
• Pre-pandemic, Public Services and Procurement Canada had identified underutilization of 40% of the office space. Refocusing on current reality of evolving patterns of work, we are confident in our ability to further reduce our portfolio by up to 50% and improve the use of the retained assets

Public Services and Procurement is the federal government’s administrator of real property and is responsible for approximately 6.9 million square metres (m²) of space across Canada. This includes the office portfolio, special purpose buildings, and assets for the Science and Parliamentary Infrastructure Branch. About 6.2 million square metres is considered office space, which is approximately split evenly between leased and Crown owned space

The ten surplus properties referenced above include:

• Jackson Building
• Rideau Falls Lab
• Sir Charles Tupper Building
• Graham Spry Building
• L'Esplanade Laurier – East Tower
• L'Esplanade Laurier – West Tower
• L'Esplanade Laurier – Commercial
• Brooke Claxton Building and Annex
• Asticou Centre
• 1500 Bronson Building and Annex

Public Services and Procurement Canada are custodians of approximately 25% (6.9 million m2) of the Government of Canada (GC)’s real property assets, with over 50% of our office portfolio being within the National Capital Region (NCR).