Feds looking for additional office space in Ottawa-Gatineau to accommodate public servants

All employees in the core public service are now required to work a minimum of four days in the office, but unions and workers continue to push back.

The federal government is looking for office space available for a possible lease or sale in Ottawa and Gatineau to accommodate public servants spending more time in the office.

As of July 6, all federal public servants are required to spend a minimum of four days a week in the office as part of the Treasury Board of Canada Secretariat’s return-to-office mandate. However, several federal departments have delayed the return-to-office mandate due to a lack of office space.

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Public Services and Procurement Canada (PSPC) has issued an expression of interest (EOI) to identify available office space for potential leases in the national capital region.

“As part of ongoing and future accommodation planning, PSPC is undertaking proactive real estate market interest research to better identify space that could meet a range of federal accommodation needs, including different sizes, locations, and terms,” a spokesperson for PSPC said in a statement to CTV News Ottawa.

“The EOI is not a solicitation or call for proposals, and responding to it does not guarantee a lease. The information received will ensure the Government of Canada is well positioned to respond to upcoming office accommodation needs.”

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According to the expression of interest, Public Works and Government Services Canada (PWGSC) is looking for office space for lease with a minimum of 10,700 sq. ft. of space. It says the proposed space should have vacant space, including ground-floor space and/or fully fitted up and furnished with commercial Wi-Fi.

The government is also looking for office space to purchase with a minimum of 53,800 sq. ft. of space

The expression of interest looks for office space within the following boundaries:

• Gatineau Node: Aylmer Hull and Gatineau sectors only
• Downtown Ottawa: Ottawa River in the north, Rideau Canal in the east, Highway 417 in the south and Bronson Avenue/Albert Street and Booth Street in the west.
• Ottawa East Node: Ottawa River in the north, Trim Road in the east, Brian Coburn Boulevard/Hwy. 417 in the south and the Rideau River in the west.
• Ottawa South Node: Highway 417 in the north, Highway 417/Boundary Road in the east, Mitch Owens Road in the south and Rideau Canal in the west.
• Ottawa West Node: Ottawa River in the north, Booth Street/Albert Street/Bronson Avenue and Prince of Wales in the east, Barnsdale Road in the south and Eagleson Road/Terry Fox Drive/Marc Road/Dunrobin Road and Cameron Harvey Drive in the west.

Two weeks ago, Public Services and Procurement Canada said it was closing co-working sites in Ottawa and Gatineau to reallocate office space to federal departments to meet their “operational needs.”

The GCcoworking sites will be closing at the end of September and the office space provided to departments to “meet their operational needs and support the implementation of the Direction on Prescribed Presence in the Workplace,” the department said.

According to the Treasury Board of Canada Secretariat, there are 146,149 public servants working for the federal government in the national capital region.

15 per cent office vacancy rate

The CBRE said earlier this month that the overall vacancy rate was 16.1 per cent in downtown Ottawa and 14 per cent in the suburbs. The second quarter report showed Ottawa’s office market vacancy rate rose by 70 bps, rising from 14.3 per cent to 15 per cent, “equating to 120,000 sq. ft. of negative net absorption.”

“As the federal government’s four-day return-to-office mandate nears, their anticipated demand has supported improving leasing sentiment,” the CBRE said.

Three federal departments have told CTV News Ottawa they will be delaying the four days a week return-to-office mandate due to a lack of office space — Global Affairs Canada, Statistics Canada and Immigration, Refugee and Citizenship Canada.

Global Affairs is conducting a “multi-year renovation project” at the Lester B. Pearson Building on Sussex Drive in Ottawa and other buildings in the national capital region.

The Department of National Defence has said workspace “may be limited” at certain buildings, and implementation of the four-day office mandate will be “managed by managers.”

Environment and Climate Change Canada said there are a “few locations” where a phased approach to the return-to-office mandate will be needed to accommodate staff, and employees have been notified.

Health Canada said in June that “some areas” may have localized space challenges to accommodate public servants, while Employment and Social Development Canada said a number of offices require additional space to accommodate workers four days a week.

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