Overview

• Since 2019 the government has reduced only 2% of its office footprint, with actual downsizing efforts only beginning in 2024.
• Public Services and Procurement Canada now forecasts freeing up 33% of its office space by 2034, missing its decade-long target of a 50% reduction.
• The Auditor General cites funding shortfalls, resistance from federal tenants and higher in-office attendance requirements as key barriers to both space reduction and workspace modernization.
• Nearly half of federal tenants have yet to finalize office space reduction agreements, leaving renegotiations ongoing and hampering disposals.
• The Canada Mortgage and Housing Corporation’s Federal Lands Initiative is securing commitments for thousands of new housing units, though many may not serve regions with the greatest need.