DND buys two Ottawa properties for $59 million amid space shortage and staffing growth
The Defence Department shifted from leasing to owning industrial facilities on Star Top Road to accommodate growing headcount and meet NATO spending commitments.
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The Department of National Defence has purchased two Ottawa properties—an office building and industrial facility—for $59 million, shifting from a leasing arrangement after nearly three decades.
The facilities at 1600 and 1630 Star Top Road in Ottawa's east-end industrial park will support "evolving long-term requirements" at DND, according to spokesperson Andrée-Anne Poulin. The purchase closed April 1 and comes as the department's headcount grew by nearly 3,000 employees over the past fiscal year, partly due to the Canadian Coast Guard moving under DND's umbrella.
The move reflects broader federal reality: while much of the public service shrinks, DND is one of few areas experiencing expansion as Canada works to meet a NATO pledge to spend five per cent of annual GDP on defence by 2035.
The purchase also signals deeper real estate strain. DND has struggled to meet Treasury Board's four-day return-to-office mandate by the July 6 deadline, citing space constraints. In May, department leadership cited anticipated growth when asking to "stagger" return-to-office plans. The Carling Campus parking shortage has grown so acute that military police towed 13 cars this spring; DND has since examined converting nearby sports fields into temporary parking.
