New Prime Minister Mark Carney’s election victory will help end months of confusion in Canada’s commercial real estate industry, says the head of Avison Young’s Canadian business.

Uncertainty, from both a U.S. tariff and leadership standpoint, has prompted Canadian CRE investors to push the pause button on investments, said Mark Fieder in an interview published on the company’s website. But with a new PM, the Canadian CRE industry will see “renewed certainty and forward momentum.”

“Occupiers and investors have been trying to understand the impacts of tariffs and a new government in Canada,” said Fieder. “Now, the new government is in place and will be in a solid position to address the challenges of tariffs and our relationship with the American administration and other trading partners around the world.”

A Liberal minority government may still pose challenges for investment. But Fieder sees “great potential” for Carney and Conservative Leader Pierre Poilievre to set aside their political differences and work together on reaching common ground.

Fieder noted that Carney and Poilievre “share mutual ideas,” such as eliminating the GST on home purchases under $1 million, lowering taxes for the middle class, and creating a one-stop regulatory shop to expedite major energy-project approvals. Carney and Poilievre have also pledged to make government management more efficient and reduce red tape and bureaucracy, Fieder added.

“These measures are all good for our economy and for commercial real estate – key campaign promises made by both parties that will be beneficial for commercial real estate, and should technically be facing little or no opposition now,” said Fieder.

The U.S. election result has caused a lot of turmoil after the CRE industry was feeling confident in the fourth quarter of 2024 about 2025. But larger and upper mid-cap companies on both the occupier and investor sides are still making decisions based on the long-term.

Trade policy isn’t affecting those firms’ decision-making, but it is hampering smaller mid-cap companies that tend to be more cautious with their investments, according to Fieder.

However, both the CRE industry’s recovery and Canada’s hopes of an overall economic comeback remain in great shape due to continuing low unemployment, lower inflation and interest-rate reductions, said Fieder. The strong underlying conditions bode well for the CRE industry as Carney begins his fight against U.S. tariffs and seeks to clarify American trade policies, in Avison Young’s view.

“With a new government in place, we believe that [businesses] will start to build confidence about the future and get back to making strategic decisions regarding their business in Canada and globally,” said Fieder.

Pictured: New Canadian Prime Minister Mark Carney.

Photo: Shutterstock

Be there on May 28 | Toronto: Canadian CRE leaders will be at Connect Canada on May 28 to discuss where the CRE market is headed for the second half of 2025 and beyond. Get the experts’ insights into the challenges and opportunities facing the industry and learn from the leaders who are driving Canadian CRE forward. www.ConnectCanada2025.com | May 28, 2025 | Malaparte, Toronto.