The Department of National Defence (DND) is recommending the sale of dozens of buildings and over 1,000 acres of Crown land to meet its savings quota under a federal budget review, according to a report obtained by Blacklock's Reporter.
Savings Through Property Sales
In a report to the House of Commons' operations committee, DND managers stated that the comprehensive expenditure review focuses on generating sustainable savings from day-to-day operations while protecting operational readiness. The department identified $99.7 million in savings over the next three years by selling 1,468 acres of Crown land and 28 buildings.
Twenty-three of those buildings are part of the Royal Roads property, which is already being divested. Before its decommissioning in 1995, the former Royal Roads Military College in Victoria trained cadets in the army, air force, and navy. The remaining five DND properties slated for sale were not identified, according to Blacklock's Reporter.
Underutilized Assets
The report described the properties as "underutilized, obsolete or surplus assets." The department plans to reduce its real property footprint through divestment, lowering costs associated with operations and maintenance, utilities, services, and payments in lieu of taxes while streamlining the overall portfolio.
An official government estimate indicates that federal departments, agencies, and Crown corporations have 63.5 million square feet of office space. According to Blacklock's, a Department of Public Works document from 2023 stated that about half of all federal buildings could be sold or closed, a process estimated to take approximately 25 years.
Studies conducted before 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, the Department of Public Works briefing note reportedly said.
Finance Minister Francois-Philippe Champagne, when presenting the 2025 federal budget, claimed the government had found $60 billion in savings over the next five years.
