Optimizing our real property portfolio

Find information about the long-term plans Public Services and Procurement Canada (PSPC) has for its office portfolio.

On this page

• Real property statistics
• Portfolio optimization at a glance
  • Disposal
  • Affordable housing
  • Leasing
  • Recapitalization
  • Modernization
• Related links
• More information

Real property statistics

• We are custodians of approximately 25% (6.9 million square metres) of the Government of Canada’s real property assets based on floor area (for example, the Parliamentary Precinct, warehouses, marine structures, heating and cooling plants, and office space)
• About 6.2 million square metres is considered office buildings
• Over 50% of our office portfolio is within the National Capital Region
• We have the second largest portfolio (by floor area in square metres) in the federal government

Portfolio optimization at a glance

PSPC frequently reviews how efficiently it uses public funds when providing work environments for federal public servants to deliver programs and services to Canadians.

We are developing a long-term real estate portfolio plan to optimize the space under our responsibility, lower operating costs and reduce greenhouse gas emissions.

We have identified several ways to optimize our space, both leased and owned, including:

• renovating existing PSPC buildings
• reviewing our leased inventory needs
• working with our landlords to ensure that our portfolio meets future requirements
• identifying properties for immediate and potential disposal

We aim to reduce the PSPC-administered office portfolio by 50% over the next 10 years.

As the plan evolves, our goal is to improve and transform our office portfolio so that we can provide federal employees with efficient, modern, accessible and green workplaces where they can continue to deliver services to Canadians.

Our office space services more than 270,000 federal public servants from over 100 departments and agencies across Canada. The shift to a hybrid work environment permits more effective utilization and sharing of space that was simply not possible before the pandemic when desks were assigned to public servants on a one-for-one basis.

We are working with federal departments and agencies to ensure we continue to provide sufficient office space to help support our client organizations deliver on their mandate and programs.

Disposal

Disposal encompasses the last phase of the physical life cycle of real property within our portfolio and refers to the sale or transfer of an asset. Considering an asset for disposal is a process that can take several years. It’s a normal part of the life cycle of government-owned properties. As part of this process, we consider:

• building condition
• environmental impact
• functionality
• use
• financial performance

In accordance with the Directive on the Management of Real Property, expressions of public purpose interest are required to be sought from federal departments, agent Crown corporations, provinces, municipalities and Indigenous groups to determine if there is interest in surplus federal real property.

As a first step toward improving our disposal process, we are:

• engaging Indigenous Peoples and key stakeholders earlier
• circulating a list of assets that are identified for disposal

Disposal of these properties to federal, provincial, municipal and community stakeholders and Indigenous Peoples, provides opportunities to generate socio-economic benefits such as:

• affordable housing
• redesigned community or commercial space
• meaningful opportunities for Indigenous participation and reconciliation

Affordable housing

We are an active contributor to the Federal Lands Initiative (FLI). The FLI is a program led by the Canada Mortgage and Housing Corporation that turns surplus federal lands and buildings available for development into affordable housing units and communities.

As an example, former federal staff housing is being converted into new permanent affordable homes in Yellowknife, Northwest Territories. Previously owned by PSPC, the building was transferred to the community through the FLI.

Another example is a former PSPC property in Belleville, Ontario, that is being converted into new homes for Indigenous Peoples, particularly women and children fleeing violence.

Leasing

Over the next 5 years, more than 50% of our office space leases will expire. We continue to work with client departments and agencies to establish their long-term office space requirements. We will use this information to assess where and how many leases need to be renewed.

Recapitalization

We also aim to rejuvenate PSPC—owned buildings. Certain assets in our owned portfolio are considered core assets, or buildings that will remain in our real property portfolio for the long-term.

Recapitalization projects ultimately reduce our long-term costs by helping us:

• preserve existing buildings
• stop or reduce deterioration
• increase building operations performance and efficiency
• meet current government priorities (for example greening, accessibility and office modernization) with existing assets

Some of our recapitalization projects include:

• Portage III in Gatineau, Quebec
• 25 St. Clair in Toronto, Ontario
• the West Memorial Building in Ottawa, Ontario

Modernization

We are continuing with workplace modernization in order to promote collaboration, mobility and flexibility.

Related links

• Directive on the Management of Real Property
• Federal properties for sale
• Federal Lands Initiative
• A modern workplace for the new public service
• Portfolio optimization: disposal list

Contact us

For more information, please contact National Portfolio Management by email at spac.siportefeuilleimmobilier-rpsbuildingportfolio.pspc@tpsgc-pwgsc.gc.ca.