Finance Minister Chrystia Freeland resigned Monday, marking a major shake-up in Prime Minister Justin Trudeau’s cabinet.

Freeland also stepped down from her deputy prime minister post. She will remain in the Liberal caucus as the MP for Toronto’s University—Rosedale riding.

In another surprising development, Housing Minister Sean Fraser also announced his resignation from cabinet and impending departure from politics.

Freeland’s and Fraser’s moves could have near-term commercial real estate implications. Both have developed policies that led to large-scale public and private investment in development projects.

In one of her latest moves, Freeland spearheaded a federal $2-billion data-centre development program.

Freeland informed Trudeau of her resignation in a letter that she also posted on X (formerly Twitter.)

“To be effective, a minister must speak on behalf of the prime minister and with his full confidence,” she wrote.

She said in the letter that Trudeau had informed her he no longer wanted her to serve as his top economic advisor. Freeland also said that, for the past number of weeks, she and Trudeau had been “at odds over the best path forward for Canada,” essentially confirming Globe reports that she and Trudeau have not seen eye-to-eye on several fiscal matters, including a controversial GST holiday.

Freeland also cited concerns over Canada’s ability to respond to looming economic challenges, particularly from the U.S. under President-elect Donald Trump. She called for fiscal restraint, criticizing “costly political gimmicks” that could undermine Canada’s economic stability during a potential trade conflict with its largest trading partner.

Freeland’s resignation could have commercial real estate industry and investment implications. Mark Carney, a former Bank of Canada governor, is being strongly considered as her replacement, according to the Globe and Mail.

Carney currently chairs Brookfield Asset Management, which ranks among Canada’s largest institutional investors. He also heads its global-transition investment program.

If he were to accept the finance minister post, Carney would have to leave his BAM posts, either permanently or temporarily.

Freeland’s resignation came the same day that she was scheduled to deliver a fall economic statement that could offer details on a potential $15-billion federal data-centre investment incentive program. Ottawa has considered offering up to $15-billion in incentives to encourage Canada’s largest pension funds to invest in green-powered artificial intelligence data centres, the Globe reported last week.

The update, which serves as a preview of sorts for the 2025 budget, was expected to show a missed deficit target of $40.1 billion, according to the Globe.

Meanwhile, Fraser is preparing to leave olitics after introducing multi-family real estate investment incentives that have drawn praise from the industry. His measures include lifting the GST and the harmonized sales (HST) in all provinces that do not have one. That move spurred provinces, other than Quebec, without a harmonized sales tax to lift their sales taxes on such ventures. (The HST is a tax that combines the GST with a provincial sales taxes in certain provinces that participate in the federal government’s HST collection program.

He said his decision was motivated by a desire to spend more time with his family, denying that it was linked to the Liberal Party’s recent struggles in the polls.

“I made this decision earlier this fall, and it’s about my family,” Fraser said during a news conference in Ottawa.

“My kids aren’t getting any younger and they’re going to need their dad around. “Our path to creating a family was a challenging one. We’ve experienced the highest of highs and the lowest of lows. We have had micro-preemies, lengthy hospitalizations, medical interventions and know the pain of losing our one-day old daughter Ruth, who I miss every day and who I love very much.”

The departures come as the Liberal government faces mounting criticism over economic management and housing affordability, adding further pressure on Trudeau to restore confidence ahead of the next election.

The Liberals are trailing the Conservatives in the polls, and Trudeau has face some pressure to resign. Freeland has been viewed as a potential replacement as the party leader.

Treasury Board President Anita Anand appeared visibly shaken by Freeland’s resignation while entering a cabinet meeting, the Globe reported.

“This news has hit me really hard, and I’ll reserve further comment until I have time to process it,” Anand told reporters.

Photo: photocosmos1 / Shutterstock.com