Federal property manager hasn't added new office space despite four-days-a-week return-to-office mandate
PSPC entered into leases for over 100,000 square metres since announcing RTO-4 in February, but says none represent net new space as executives face compressed workspace.
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The federal government's property manager has not added any net new office space despite mandating most public servants return to offices four days per week—a gap that could affect roughly 10 per cent of federal workers by March 31, 2027.
Public Services and Procurement Canada (PSPC) announced the latest return-to-office policy, called RTO-4, in February 2026. Executives must be in-office five days per week starting in May; most other public servants four days per week as of July. But as of September 16, PSPC confirmed it has added no "net new" office space despite entering into leases for more than 100,000 square metres since the February 5 announcement.
The existing portfolio cannot accommodate approximately 10 per cent of public servants under RTO-4. PSPC spokesperson Michèle LaRose said the department is "considering" acquiring additional office space over the coming months and expects to accommodate 95 per cent of public servants by March 31, 2027. The property manager is also working with organizations to "optimize existing office space" by shifting from unassigned to assigned seating where possible—a change that actually requires more total space per person.
PSPC was previously tasked with cutting its office portfolio in half over a decade. The return-to-office push has forced the department to adjust those plans. LaRose cautioned that recent leases can "meet different operational needs" including renewal, relocation, or optimization, and do "not necessarily mean a net increase in occupied space." She declined to provide the internal PSPC analysis that showed in April which locations would face space shortages.
In response to the space crunch, PSPC is reassigning five co-working sites across the National Capital Region to government departments. These sites, part of the GCcoworking pilot project that opened in 2019 to support hybrid work, will no longer be available to the public service at large. As of September 30, three locations had been reassigned to the Department of National Defence, Employment and Social Development Canada, and Environment and Climate Change Canada, with two more pending reassignment.
How many federal workers will ultimately be unable to find desk space if the March 2027 target of 95 per cent is not met?
Will assigned seating requirements force the government to lease substantially more space than the current portfolio?
We'll update this story as answers emerge.
The facts
When did PSPC announce the RTO-4 policy?
Public Services and Procurement Canada announced RTO-4 on February 5, 2026.
How much office space has PSPC leased since announcing RTO-4?
PSPC entered into leases for over 100,000 square metres since the February 5, 2026 announcement, though none represent net new space.
What percentage of federal workers may lack adequate office space under RTO-4?
Approximately 10 per cent of federal workers cannot be accommodated under RTO-4 by the existing office portfolio, though PSPC expects to accommodate 95 per cent of public servants by March 31, 2027.
How many co-working sites has PSPC reassigned to government departments?
As of September 30, 2026, three of five co-working sites across the National Capital Region had been reassigned to the Department of National Defence, Employment and Social Development Canada, and Environment and Climate Change Canada.
