Federal housing officials privately complained that sky-high commercial rents in Canada’s biggest cities are complicating plans to launch a new national housing agency, according to internal documents obtained through Access To Information.In a July 10 briefing memo to Housing Minister Gregor Robertson, senior staff warned that Toronto and Vancouver office space is too expensive and too scarce to quickly house Build Canada Homes, a new federal agency announced by the Prime Minister this fall.“The Prime Minister will make the final decision regarding Build Canada Homes’ structure and location,” wrote Robertson’s deputy minister, while outlining the difficulties officials faced trying to secure headquarters space.Managers said the agency’s main office should be located in one of five cities — Ottawa, Toronto, Vancouver, Calgary or Montréal — based on labour availability and proximity to stakeholders. But they made clear that not all markets were equal.“Ottawa offers a lower priced rental market for office space with a higher likelihood of space availability in the short term,” the memo stated. .“Toronto and Vancouver have a higher priced rental market for office space and an anticipated longer wait time to secure the space, 3 to 4 years.”Calgary and Montréal were described as closer to Ottawa on cost, with rents comparable to the capital and wait times of one to two years to secure suitable space.Officials estimated Ottawa commercial rents at an average of $40 per square foot, translating to roughly $600,000 annually, with space available in the short term. Montréal rents were also pegged at $40 per square foot, though with a longer wait time depending on availability.Toronto, by contrast, averaged $60 per square foot — about $900,000 a year — with managers warning of a three- to four-year delay to lock in office space. .Calgary rents averaged $55 per square foot, while Vancouver came in at $58, according to the memo.The department anticipated Build Canada Homes would employ about 150 staff. Under federal office standards, each employee is allocated roughly 100 square feet of space.Complicating matters further, officials said Ottawa continues to push a 50% reduction in government office space, prioritizing consolidation over new leases — a policy staff warned could further delay securing offices for the new agency.The Department of Housing declined public comment on the memo.The Prime Minister formally announced Build Canada Homes on September 14, describing it as “a new federal agency that will build affordable housing at scale.” Former Toronto deputy mayor Ana Bailao was named chief executive officer, with a reported annual salary of $469,000.
