The Canadian government’s mismanagement of federal buildings has reached such a low point that it now ranks below New Zealand in efficiency — despite managing a vastly larger portfolio, according to a Treasury Board report.
Blacklock's Reporter says federal departments spend roughly $10 billion each year on real property without adequate oversight or a centralized strategy, the report warns.
“There is a need for centralized management of federal real property given the deterioration of assets essential to the delivery of federal programs and services to Canadians,” stated the Evaluation Of The Centre For Expertise On Real Property.
The study compared Canada’s approach to real estate with that of the United States, United Kingdom, Australia and New Zealand.
Canada was the only country among those reviewed that lacked a government-wide real estate strategy, a central authority, or a unified vision to manage its vast portfolio.
“The evaluation found a need for a government-wide vision and strategic plan similar to those of other jurisdictions that were reviewed,” wrote the Board.
The federal government is responsible for 32,000 buildings, 248 million square feet of floorspace, 96 million acres of Crown land and 20,000 engineering assets, including bridges and highways.
Yet despite the scale of the portfolio, the infrastructure is decaying at an accelerating rate.
“This deterioration compromises the portfolio’s ability to support federal programs and services,” the report said.
This marks the second time in recent years that such concerns have been flagged. A 2021 audit — Horizontal Fixed Asset Review — painted a similarly bleak picture, describing the government as the country’s largest, yet poorest, landlord.
At the time, managers had deferred $20 billion in basic upkeep, with the maintenance backlog growing by an estimated $2 billion annually.
“The status quo is no longer an option as it is no longer sustainable,” wrote auditors. They urged the government to overhaul its management approach and real estate delivery.
The audit, conducted over three years, found building management across departments to be “inefficient” and “unreliable,” marked by a “lack of profile, leadership and oversight.” It typically took nine years to sell surplus properties.
Sixteen precent of federal buildings were rated in poor condition, while 2% were considered critical. The average age of a Crown-owned building was 49 years. Auditors noted that many of these aging buildings are reaching a tipping point, where base systems, structural elements and interior spaces begin to require major upgrades.
“The highest liability for health and safety risks arising from issues such as system failures, building closures or interruption to the delivery of programs and services are commonly associated with buildings that are 50 years of age and older,” the report stated.
