The federal immigration department gave up 12 floors of office space across two downtown Ottawa buildings just months before delaying the four-day return-to-office mandate due to insufficient space. The revelation comes from internal documents obtained by the Ottawa Citizen through the Access to Information Act.
Space Reduction Prior to RTO-4
According to an August 2025 slideshow, Immigration, Refugees and Citizenship Canada (IRCC) was required to return the floors to the government's central property manager to meet obligations under a federal plan to cut office space. Specifically, IRCC released 10.5 floors at 300 Slater Street and 1.5 floors at 180 Kent Street back to Public Services and Procurement Canada (PSPC). The department confirmed the full release was completed by the end of January.
However, a few months later, IRCC had to delay the start of the government-wide four-day return-to-office mandate for most public servants because it did not have enough space to accommodate them. The documents provide a glimpse into the internal challenges federal departments face as they attempt to bring workers back into the office more often after years of trying to reduce their real estate footprint.
Shifting Federal Real Estate Strategy
In recent months, PSPC has slowly reversed its messaging around the government plan to shed office space. In 2024, PSPC committed to reducing the federal office portfolio by half over a decade, with Budget 2024 setting aside $1.1 billion for this purpose. The following year, a report from Canada's auditor general highlighted that the government was only on pace to cut its real estate profile by about a third, as departments and agencies had been hesitant to sign off on reductions.
But in March 2026, about a month after Treasury Board officials announced a four-day return-to-office for most public servants (up from three days), PSPC said its plan to offload space was being "adjusted." Then, in April, an internal PSPC analysis found that more space may be added in cases where workstations are scarce. The department declined to provide that analysis.
Impacts on Major Departments
Multiple large federal departments have since said they will not be able to meet the latest remote work directive due to a lack of space, including Global Affairs Canada and IRCC. In a May 7 memo obtained by the Ottawa Citizen, IRCC stated that all rank-and-file employees will be required in-office three days per week as of July 6, rather than the Treasury Board's four-day mandate. Executives are already in five days a week, while managers in the department will follow the four-day requirement.
That memo was circulated about three months after IRCC gave up substantial downtown real estate at the request of PSPC. In an email, PSPC spokesperson Michèle LaRose said 180 Kent is currently assigned to Housing, Infrastructure and Communities Canada, while 300 Slater is assigned to the Department of National Defence, another organization facing space issues.
