Feds open up another downtown London office for possible housing conversion

The federal government has opened up the opportunity for interested developers or non-profits to turn another government-owned office property into housing in downtown London.

On Tuesday, the Richard Pierpoint building at 451 Talbot St. joined another federally-owned property at 120 Queens Ave. on a list of government properties that are being offered up to developers as available for housing development.

That update brought the number of government buildings available for conversion in London to two.

"Think of a mixed-use project where you have market and non-market [affordable] rents provided," said London North Centre Liberal MP Peter Fragiskatos of his hopes for the property. "Something like this would do so much for the community — situated downtown near key amenities, and making sure we deal with the very low vacancy rates that we have in London." 

In its last rental market report, the Canada Mortgage and Housing Corporation pegged London's rental vacancy rate at 1.7 per cent. Fragiskatos said he hopes to see that number increase to between three and five per cent in the coming years with the goal of increasing availability and decreasing rent costs.

Opening the buildings up to conversion opportunities is part of Ottawa's Public Lands for Homes Plan, which, as its name implies, offers up public properties for construction of housing. Currently, the government's map of available properties lists 83 opportunities across the country.

Built in 1976, the Richard Pierpoint building is occupied by four federal agencies.

Of its almost 20,000 square metres of office space, the Canada Revenue Agency (CRA) calls the lion's share — more than 10,000 square metres — home. More than 26 per cent of the building's space is considered vacant, according to government documents, with the rest being split between the Canada Border Services Agency (CBSA), Royal Canadian Mounted Police (RCMP) and Innovation, Science and Economic Development Canada (ISED).

Although most of the building is technically occupied, Fragiskatos said, much of it is barren on a day-to-day basis, with many employees working from home and a limited number of people working on-site.

A database of government owned properties lists the Pierpoint Building's condition as "poor" and the condition of the vacant building at 120 Queens Ave. as "critical".

It's unclear as of now what might become of the building, as the government is simply seeking feedback ahead of an eventual request for proposals, but the crown corporation that manages federal properties said the property could accommodate roughly 1,300 units, Fragiskatos said.

"That probably would require for the building to be knocked down and reconstructed ... but even if it's half of that, that would go a long way."

Fragiskatos said regardless of what happens to the building, employees working there will be accommodated.

In terms of who might be interested in pouring money into a housing project they wouldn't technically own, as the feds only plan on leasing the property out, Fragiskatos said there's still allure for both private sector developers and not-for-profit organizations. 

"We'd love to see whatever builders or not-for-profit organizations, or a combination of them, working in partnership would envision for these particular properties," Fragiskatos said.

"We're keeping a very open mind and allowing for flexibility. But again, the emphasis is on leasing these properties to ensure affordability."

In the eyes of Barb Maly, the trend of higher levels of government passing up downtown London is disappointing, but the prospect of more housing coming to the core is exciting.

Maly is the executive director of Downtown London, the core's business improvement area, and said a conversion of the building's office space into residential space is also a move toward London's goal of paring down office vacancies and replacing them with housing units.

"[It's about] not only having this be a place where people work 9 to 5, but actually turning it into a neighbourhood, turning it into a community unto itself," she said.

In terms of what she'd rather see downtown — an occupied office building, or a residential building — she said there's no simple answer. 

"When you have people filling up office space, you have more people per square foot, but it creates a completely different dynamic for a downtown when you have residents who are there all the time."

More residences, even if they come at the expense of office space that is being used, create the benefit of different types of businesses being able to thrive compared to what one might find in a more commercialized core, she said.

More people living in an area also creates a greater sense of ownership and care over it, Maly added.