Thank you for the question. That is the fundamental question we ask ourselves every time we are called upon to meet the accommodation needs of other departments.
We already have a portfolio of about 350 buildings across the entire country, buildings owned by PWGSC. Any time the government approves a department's need for new accommodations, our first recourse is always to try to find space in our existing portfolio.
We proceed by doing an investment analysis. We take the accommodation requirements given to us and do an investment analysis to determine what the best solution would be over a 25-year period. We may end up using a building we have and renovating it. We may also end up simply taking out a lease. The rates can be much higher in some regions than in others, a factor our investment analysis takes into account. We also consider possible market fluctuations, as I've just mentioned.
We may also decide to undertake a construction project, which can take various forms. In Surrey, British Columbia, for instance, we entered into a P3. In that case, the developer is responsible for the building's construction and maintenance, and after a certain number of years, we take back the building. That solution allows us to spread out our capital and operating expenditures over a longer period.
We use the investment analysis to find the best possible solution, given the location and environment. That gives us an average. About 55% of our buildings are leased and 45% are owned. We always base the decision on an investment analysis that takes into account the accommodation requirements and, especially, the local markets. That is how we identify a solution.