The department of Public Works suggested that up to half of all federal office buildings are unnecessary and could be sold, helping taxpayers to save money. . Home Office .According to Blacklock’s Reporter, selling off these buildings is expected to take about 25 years as Public Works is the largest landowner in Canada..“The department is working to modernize and green the federal office portfolio over a 10- to 25-year planning horizon which includes the disposal of assets that are no longer required,” staff wrote in a June 1 briefing note. .“The department’s approach is evolving in line with the new hybrid workplace. Planning assumptions and investment timelines are being updated to reflect current realities.”.According to official estimates, the department oversees 67 million square feet of office space across Canada..“The post-pandemic environment represents an opportunity to incorporate new workplace arrangements,” according to the note Optimizing Public Services and Procurement Canada’s Real Property Portfolio..In the report 2022 Evaluation of the Office Portfolio, the department stated it could save $1.3 billion annually by reducing its current office space by 40%..“Infrastructure is the second largest expense to the Government of Canada after salary expenses,” said Evaluation..“Studies undertaken prior to the COVID-19 pandemic showed existing office space was underutilized by at least 40% and considered inefficient with annual operating and maintenance costs of approximately $2.4 billion."."By enabling a hybrid model of work, the department has an opportunity to optimize and modernize the portfolio (and) transform the public service.”.The most recent note stated that even more buildings are no longer needed and can be considered surplus..“Pre-pandemic, the department had identified underutilization of 40% of our office space,” said the note. .“Given the current reality of evolving patterns of work, we are confident in our ability to further reduce our portfolio by up to 50%.”.Cabinet has estimated office vacancy rates run as high as 70% or more a a result of Treasury Board rules permitting federal employees to work from home half the time. .An Inquiry of Ministry tabled in the Commons showed vacancy rates ranged from 40% of Department of Agriculture offices in Ottawa to 80% vacancy at a National Film Board office in Winnipeg..On Dec. 15, the Treasury Board issued a directive that government workers can work from home for “40% to 60%” of their regular schedule..“We are not going back to the way things used to be,” then-Board President Mona Fortier told reporters at the time. .“We are reimagining our workplace.”.“Does that mean those savings are not going to happen now?” asked a reporter. .“What’s important is how do we best serve Canadians,” replied Fortier.
