Federal Government Acquires Downtown Ottawa Office Tower for $148.2 Million
In a significant real estate transaction, the federal government has finalized the purchase of a prominent downtown Ottawa office building for $148.2 million. Public Services and Procurement Canada (PSPC) officially confirmed to CTV News Ottawa that it is acquiring 131 Queen Street from Morguard Corporation, a major Canadian real estate investment and management firm.
Details of the Acquisition
The deal, announced on February 25, 2026, represents a strategic move by the federal government to secure office space in the heart of the nation's capital. The building at 131 Queen Street is a well-known commercial property, and its acquisition underscores the government's ongoing commitment to maintaining a strong presence in Ottawa's central business district. This purchase is part of broader efforts to manage federal real estate portfolios efficiently and support public service operations.
Implications for Ottawa's Real Estate Market
This transaction is expected to have notable impacts on Ottawa's commercial real estate landscape. By investing $148.2 million in this prime location, the federal government is reinforcing the stability and value of downtown office properties. The move may influence market dynamics, potentially encouraging further development and investment in the area. It also highlights the government's role as a key player in the local economy, contributing to urban growth and infrastructure.
Broader Context and Future Plans
The acquisition aligns with federal initiatives to optimize office space usage, especially in light of evolving work patterns and the need for modernized facilities. PSPC has emphasized that this purchase will help meet the operational requirements of various government departments, ensuring they have adequate and functional workspaces. As Ottawa continues to develop, such investments are crucial for supporting public services and fostering economic activity in the region.
Overall, this $148.2 million deal marks a pivotal moment in federal real estate strategy, demonstrating a proactive approach to securing valuable assets in Canada's capital city.
