Accommodation decisions for organizations like the GSU are not just real estate transactions. They involve operational fit, long-term cost trajectories, market timing, and organizational growth assumptions, all of which have to be considered together.
The main challenges Bronson tackled:
- Multiple decision pathways. GSU was weighing at least three distinct options: renewing the existing lease, leasing a new space, or purchasing a property. Each carried different financial, operational, and strategic implications.
- Cross-market comparison. The analysis had to compare Ottawa and Gatineau as candidate markets, accounting for the different cost structures, availability, and operational considerations on each side of the river.
- 10-year time horizon. Budgetary estimates had to be projected over a 10-year horizon, accounting for renovation costs, lease escalations, ownership overhead, and other forward-looking cost drivers.
- Operational fit. The accommodation had to support GSU’s current team and provide scalability for future growth, requiring a clear view of space requirements alongside cost analysis.
- Lease renewal timing. With the existing lease up for renewal, the study had to be delivered on a timeline that supported a real decision, not an academic comparison.
- Trustworthy market data. Recommendations had to be grounded in defensible market data and real-world sample costs, not assumptions about how the market might be moving.
GSU needed a structured, evidence-based comparison of its accommodation options, delivered in time to inform a real lease-renewal decision.
Our Solution and Impact
Bronson designed a focused three-step accommodation study that combined strategic context, market analysis, and structured financial comparison. The work was organized into the following streams:
1. Strategic Alignment Review
Bronson began by aligning the analysis with GSU’s accommodation objectives. The strategic alignment review covered square footage requirements, location preferences, scalability of space for future expansion, and operational usage expectations. This step anchored every subsequent analytical decision in GSU’s actual needs.
2. Real Estate Market Analysis
Bronson conducted a structured analysis of current market dynamics in both Ottawa and Gatineau. The analysis examined trends and projections in office space leasing and ownership costs, including costs per square foot for renovations using published space allocation ratios. Bronson also gathered a sample of “real-life” costs for currently available spaces, grounding the analysis in observable market data.
3. Cost Comparison Modelling
Bronson built a structured financial comparison of the accommodation options. The comparison encompassed the budgetary costs associated with each pathway, including lease payments, renovation expenses, acquisition costs, and the ongoing overhead costs of a new property. The result was a defensible 10-year cost view across each scenario.
4. Research and Stakeholder Engagement
Bronson developed outreach questions and conducted research with identified market sources, alongside structured input from GSU stakeholders. Weekly touchpoints with GSU representatives kept the work continuously aligned with the union’s evolving requirements and decision context.
5. Draft Report and Findings Presentation
Bronson prepared a draft report including the cost-benefit analysis, market insights, and strategic recommendations, and presented the findings to GSU to elicit feedback before finalization. The presentation step ensured leadership had the opportunity to test the analysis before the final report was issued.
6. Final Report Delivery
Following feedback from GSU, Bronson incorporated revisions and delivered the final report supporting the union’s accommodation decision.
Key Deliverables
Strategic Alignment Summary – A documented summary of GSU’s accommodation objectives, including square footage requirements, location preferences, scalability needs, and operational usage expectations, anchoring the analysis in the union’s actual requirements.
Real Estate Market Analysis – A structured analysis of current office leasing and ownership market dynamics in Ottawa and Gatineau, including cost-per-square-foot benchmarks, renovation cost assumptions, and a sample of real-life costs for currently available spaces.
10-Year Cost Comparison Model – A structured financial comparison of the candidate accommodation pathways, including lease payments, renovation expenses, acquisition costs, and ongoing ownership overhead, modelled across a 10-year horizon.
Ottawa Lease vs Buy Comparison – A direct comparison of the 10-year budgetary estimates for leasing versus buying office space in Ottawa.
Ottawa vs Gatineau Ownership Comparison – A direct comparison of the 10-year budgetary estimates for buying office space in Ottawa versus Gatineau.
Market Insights and Considerations – A documented set of additional pertinent market information and insights GSU should consider in its accommodation decision, including market timing, scalability, and operational factors beyond direct cost.
Draft Findings Presentation – A structured presentation of the draft analysis, market insights, and strategic recommendations, delivered to GSU for review and feedback prior to final report issuance.
Final Accommodation Study Report – The final accommodation study report incorporating GSU feedback, delivering the cost-benefit analysis, market insights, and strategic recommendations supporting the union’s accommodation decision.
The Impact
Bronson’s work gave the Government Services Union a defensible, evidence-based foundation for its accommodation decision. Specifically, the engagement delivered:
- A clear strategic alignment between GSU’s accommodation objectives and the options under consideration.
- A structured 10-year comparison of leasing versus buying in Ottawa, allowing GSU to weigh the long-term cost implications of each pathway.
- A direct comparison of ownership economics in Ottawa and Gatineau, surfacing the cost and operational trade-offs between the two markets.
- Documented market insights and considerations beyond direct cost, including scalability and operational factors that should inform the final decision.
- A finalized accommodation study report providing GSU leadership with the analytical foundation to make its accommodation choice with confidence.
The result is an accommodation decision supported by evidence rather than assumption, with the 10-year financial implications of each pathway made explicit and the market context made clear from the outset.