Looking to lease to the federal government?

Criteria include standards around sustainability, accessibility, reconciliation

By Brian Dryden

For building managers looking to secure a federal government tenant, there are a host of criteria to consider, not the least of which involve the government’s growing desire to address issues of sustainability, accessibility and Indigenous participation.

The government’s leasing requirements have evolved and become more stringent in recent years to fall in line with government priorities, says Public Services and Procurement Canada (PSPC) senior communications officer Michele Larose.

Starting in 2021, leasing requirements changed to support the Greening Government Strategy, which specifies that all new office leases and lease renewals over 500 square metres must report building energy and water usage, greenhouse gas emissions and waste. By 2030, 75 per cent of domestic office new lease and lease renewal floor space must be in net-zero carbon, climate-resilient buildings.

According to PSPC, building managers wishing to host government offices should first consult the CanadaBuys website, the official site for doing business with the federal government and a single-stop place to view tender opportunities for leasing space to government clients.

A building cannot be approved as eligible to host government offices before a tender has been posted, explains PSPC, the federal government’s central purchasing agent and property manager. Instead, building managers must wait for a contract to become available.

This applies even when a building has previously hosted government offices. PSPC says it does not maintain a list of buildings that are eligible to house government offices because each office space needed may have different requirements, depending on the contract.

“For each lease space acquisition, specific requirements are determined by the type of occupancy, as well as the operational requirements of the federal tenant that will occupy the space,” said Larose in an email. “Criteria are based on client needs and generally include usage of space area, geographical boundaries, floor loading capacity, start date and lease duration.”

PSPC explains that, when a competitive process for the acquisition of space is undertaken, an expression of interest is published, often in local newspapers and on CanadaBuys, in both official languages. Then, proponents deemed to be compliant are invited to present an irrevocable offer to lease to PSPC.

PSPC uses a grading system to evaluate buildings as potential hosts for government offices.

The majority of competitive processes use a pass/fail evaluation based on qualitative requirements, PSPC explains. After that, a quantitative evaluation is performed. Complex leasing transactions may include point-rated criteria for the qualitative requirements, followed by a quantitative evaluation.

More recently, PSPC has committed to ensuring the stewardship of federal offices is in accordance with the federal government’s greening, accessibility and reconciliation objectives.

As related to Indigenous participation, the minister responsible for PSPC must work with the minister of Indigenous services and the president of the Treasury Board to create more opportunities for Indigenous businesses to succeed and grow by having at least five per cent of federal contracts be awarded to businesses managed and led by Indigenous peoples.

In addition, PSPC also looks at the building’s accessibility, sustainability and carbon emissions.

PSPC points to the Accessible Design for the Built Environment contained in the Accessible Canada Act.

PSPC also adheres to sustainable building certification requirements, including LEED, BOMA BEST and FITWEL.

LEED (Leadership in Energy and Environmental Design) is an international symbol of sustainability excellence and green building leadership. LEED’s approach helps buildings lower their carbon emissions, conserve resources and reduce operating costs by prioritizing sustainable practices.

BOMA BEST is Canada’s largest environmental assessment and certification program for commercial buildings and recognizes excellence in energy and environmental management.

FITWEL is a green building certification system that focuses on improving, enhancing and safeguarding the health and well-being of tenants in buildings.

PSPC explains that it strives to reduce the carbon footprint of its leased office space to achieve net-zero, climate-resilient leasing operations. According to PSPC, this is done by reviewing building sustainability data, legionella disease management and reporting obligations, and asbestos management.