IQALUIT - The new Canadian Northern Economic Development Agency is still looking for office space in Iqaluit.

CanNor's role used to be filled by the Department of Indian and Northern Affairs and the agency has been operating out of the INAC office at Inuksugait Plaza since its creation last August. The agency will function as both a regional office and headquarters.

"When we got carved out of INAC we just stayed in the same place," said Hagar Idlout-Sudlovenick, CanNor's regional director for Nunavut.

Sudlovenick said a request for information has been put out by the Department of Public Works and Government Services to try and secure office space.

The request specifies a 10-year lease term to begin on or around April 1. The deadline for responses was Feb. 5.

"One of the impediments right now is office space," Sudlovenick said. "Once that is done then we can proceed to start the next phase of the transition."

Prime Minister Stephen Harper was criticized for choosing Iqaluit for CanNor's headquarters, as the city is known for its lack of office space and housing.

There were 1,311 rental units in Iqaluit in 2008, according to a report from the Canadian Mortgage and Housing Corporation. Of those units, only 11 were vacant during the survey.

CanNor is expecting to employ 60 people in Iqaluit, 17 of which have already been filled by INAC employees whose positions transferred to CanNor, Sudlovenick said.

Those employees already had staff housing.

"Because we haven't done additional hiring yet, they're already in current staff houses so right now we have enough," she said.

CanNor also submitted a request to Public Works last year to find housing for the employees of the remaining 43 positions, Sudlovenick said. A second round of requests will be put forward in the next few months.

Sudlovenick said the remaining jobs will be offered to all Canadians.

"Most positions that are being advertised are usually open to the public, to any Canadian citizen, so these will be on the public service website," she said.