Question Period Note: Evolution of the Office Portfolio

Public Services and Procurement Canada (PSPC) is the federal government’s administrator of real property and is responsible for approximately 6 million square metres (m²) of rentable office space across Canada. Studies undertaken prior to the COVID-19 pandemic showed that existing office space was underutilized by 40%, and considered inefficient with annual operating and maintenance costs of approximately $2.4B.

• Public Services and Procurement Canada is committed to ensuring sound stewardship of its real property office portfolio
  • The post-pandemic environment represents an opportunity to redefine the future of work and drive an enterprise-wide rationalization of the portfolio
  • Public Services and Procurement Canada is working with client departments and agencies to meet their future office needs and we expect that for many this will mean the extensive use of unassigned office space standards, which will allow for significant savings through strategic and focused investments and reduced greenhouse gas emissions from more efficient use of space

If pressed on specific actions

• Public Services and Procurement Canada tabled its Office Long‑Term Plan in early 2021. It is an aspirational plan to modernize and green the Government of Canada’s office portfolio over a 25‑year planning horizon
• An approximate 40% reduction in our portfolio would generate an estimated $1.3B in annual savings, and reduce greenhouse gas emissions
• As working arrangements continue to evolve, Public Services and Procurement Canada will continue to work closely with departments and agencies to determine the Government’s real property needs with human, environmental and operational concerns in mind

PSPC’s ultimate goal is to have a modern office portfolio with optimal usage that delivers on the Government of Canada’s (GC) net-zero carbon and other greening targets and meets or exceeds current accessibility standards. PSPC’s 2021 Office Long-Term Plan (OLTP) takes into account the dramatic change in working patterns resulting from the ongoing COVID-19 pandemic and strives to achieve a right-sized portfolio that could generate annual savings for the GC. This is especially notable given that infrastructure is the second-largest expense to the GC after salary expenses.

As part of its mandate, PSPC is providing GC-wide leadership for the fit-up and modernization of general-purpose office space, including the state and pace of workplace modernization and quality of the workplace environment. To this end, PSPC is working to provide workplace environments that are modern, efficient, productive, green, sustainable and that are digitally connected to support a mobile workforce.

The OLTP highlights the fact that PSPC has developed a number of new tools and pilot projects designed to assist in the investment decision-making with respect to which assets (both owned and leased) should be recapitalized, modernized or disposed of. GCcoworking is one such pilot, designed to explore the potential benefits of providing multi-user GC workspace where departmental business needs permit, as opposed to departmentally segregated accommodation.

It should be emphasized that the OLTP was drafted during COVID-19, which is still considered an active pandemic. Subsequent iterations of the plan will be adjusted once there is greater certainty regarding the future of work and the federal workplace ecosystem, and according to how key assumptions contained in the OLTP may evolve. The Plan will therefore be monitored and updated annually.

Additionally, the OLTP aligns with Treasury Board’s Horizontal Fixed Asset Review fall 2020 report’s recommendations to ensure the optimal use of office space. The plan is based on key principles including prudent real property investment management, sustainability, responsiveness and other government-wide priorities.

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