Department of National Defence eyes selling buildings, land

Report identifies $99.7 million in savings through sale of 1,468 acres of Crown land and 28 buildings

Published Jun 11, 2026  •  2 minute read

Department of National Defence (DND) building photographed in Ottawa on Wednesday, May 20, 2026. Photo by HYUNGCHEOL PARK /Postmedia Network

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The Department of National Defence is recommending the sale of dozens of buildings and over 1,000 acres of Crown land to meet its quota of savings under a federal budget review, according to a report obtained by Blacklock’s Reporter.

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“For the Department of National Defence, the comprehensive expenditure review is focused on generating sustainable savings from day-to-day operations while protecting operational readiness,” managers reportedly wrote in a report to the House of Commons’ operations committee.

According to Blacklock’s, the department said $99.7 million in savings for the next three years could be found by selling 1,468 acres of Crown land and 28 buildings.

Twenty-three of those buildings are part of the Royal Roads property, which is already being divested.

Before it was decommissioned in 1995, the former Royal Roads Military College in Victoria was used to train cadets in the army, air force and navy.

The remaining five DND properties slated for sale were not identified, according to Blacklock’s Reporter.

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Properties deemed ‘underutilized, obsolete or surplus assets’

“The department will reduce its real property footprint through divestment of underutilized, obsolete or surplus assets,” the report said. “This will lower costs associated with operations and maintenance, utilities, services and payments in lieu of taxes while streamlining the overall portfolio.”

An official government estimate indicates that federal departments, agencies and Crown corporations have 63.5 million square-feet of office space.

According to Blacklock’s, a Department of Public Works document in 2023 said about half of all federal buildings could be sold or closed — a process estimated to take approximately 25 years.

“Studies undertaken prior to the COVID-19 pandemic showed existing office space was underutilized by at least 40% and considered inefficient with annual operating and maintenance costs of approximately $2.4 billion,” the Department of Public Works briefing note reportedly said.

Back when Finance Minister Francois-Philippe Champagne presented the 2025 federal budget, he claimed the government had found $60 billion in savings in the next five years.

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