The head of the Ottawa Board of Trade is welcoming the federal government’s move to bring employees back to the office four days a week starting in July. However, business leaders are cautioning that appropriate infrastructure, including transit, will be needed.
Yesterday, the secretary of the Treasury Board said in an online message that the government “intends to increase the on-site presence of executives and employees who are eligible for hybrid work,” with executives expected to return to the office full-time starting May 4, and all other employees expected to be in the office four days a week starting July 6.
The letter stated that Public Service and Procurement Canada will work closely with employees to ensure there is adequate office space.
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Sueling Ching, president and CEO of the Ottawa Board of Trade, said in a statement Thursday that the move will positively affect downtown revitalization.
“This announcement responds directly to our calls for a transparent and predictable federal workforce strategy, one that allows businesses, investors, and economic partners to plan with confidence … In the nation’s capital, clarity around federal presence, people and places, is a critical economic signal that supports decision-making, investment, and growth,” the statement read.
Ching further called for clear timelines, consistent enforcement and coordination across governments, saying that workforce announcements have “real ripple effects” for downtown businesses, commercial real estate, transit and small and mid-sized firms that depend on daily foot traffic.
“Employers, employees, and local businesses need to prepare, from transit and childcare to building readiness and surrounding services,” she said in her statement.
The government’s decision enforces why Ottawa needs to diversify its economy, she said. “A more resilient and vibrant downtown core with a stronger mix of public and private employers, entrepreneurs, residents, and cultural activity, strengthens not only the city, but the entire regional economy of the nation’s capital.”
Shawn Hamilton, principal at Proveras Commercial Realty, told OBJ on Friday that he’s cautiously optimistic.
“I think our city was designed contemplating a certain daily migration of a workforce into the downtown core. Our transit system was built to support that. From an operational and economic viewpoint, it’s great news that we are reverting back to what I could call the ‘norms.’ But with that, you have to be cautious and not blind to things. We need to make sure that we’ve got infrastructure in place to support people,” he said.
Transit is one of many things that needs to be able to accommodate the volume of people coming into the downtown this summer, he added.
“We need to make sure that our transit is up to the task. If our LRT is a weak link as we continue to work out its kinks, do we have supplemental bus service in place to work in parallel so that there are no hiccups?” Hamilton said.
He added that PSPC needs to ensure that it has a comprehensive accommodation strategy in place for federal offices.
“It’s not just about ordering people back to work for the sake of being back to work, but are we accommodating people with a good standard? Are we housing them with their team members? Are we promoting communication and collaboration amongst the team? We need to make sure that all these pieces are together,” he said.
Downtown businesses will adapt to serve the increase in foot traffic, he said. “The good news about the private sector is that it’s programmed to react. As there will be people coming downtown, there will be business downtown to service the influx of people.”
Plus, it’s not as though Ottawa’s downtown is starting from square one, he added.
“We’ve seen sort of an erosion of downtown vibrancy over the course of the last five years that has gradually been restoring as more people come back. I think that will continue to create vibrancy, but I think it’s also important to note that we’re not going from zero to 100 here. We’re probably at about 70 to 75 per cent so we’re looking at increasing from 75 to 100 so it’s not going to be a wall of people coming out of nowhere. It’s going to be a gradual increase.”
Kevin McHale, executive director of the Downtown BIA, said that while he welcomes the feds’ RTO announcement, a more diverse economic base is needed for Ottawa’s downtown to thrive.
“While the return to office will contribute to downtown recovery, it is only one part of the solution. A truly resilient downtown requires more residents, more visitors, and activity seven days a week, from morning through evening. Downtown vitality depends on a mix of workers, residents, and tourists to sustain businesses beyond traditional office hours,” McHale said in a statement to OBJ Friday.
For the RTO strategy to succeed, downtown Ottawa should have “a fully functioning public transit system, affordable and accessible parking, and reliable, consistent commutes from other areas of the city,” the statement read.
