Newly elected Prime Minister Mark Carney faces several commercial real estate-related issues as he begins his first full term in office.

Carney, a rookie politician, posted an upset election victory in Monday’s federal election as the Liberals returned to power, obtaining a rare fourth term. Just a few months ago, the Conservatives were expected to achieve a majority government with little difficulty.

But voters decided that Carney, not Conservative Leader Pierre Poilievre, was Canada’s best fighter against increasing U.S. tariff threats. Carney rode a growing wave of Canadian antipathy against the country’s largest trading partner.

U.S. President Donald Trump might have aided Carney’s cause earlier Monday as he again mused that Canadian should become the 51st American state. When it comes to dealing with the effects of tariffs, Carney will seek to ward off temporary or permanent closures of conventional Southern Ontario automobile and parts plants and shutdowns of other manufacturing facilities those faced by other industries in Quebec and the rest of the country.

Carney will also be challenged to help boost investment in electric-vehicle and battery manufacturing facilities and ensure that projects already underway do not pause or end. He must also help ensure that more industrial real estate investments occur as Canada strives to beef up overall domestic production and become less reliant economically on the U.S.

The new PM must also live up to his promise to double Canada’s housing supply, including through the development of numerous multi-family project.

Carney has pledged to launch new federal housing development corporation similar to one that operated during the post-World War II era. CRE investors also expect him to live up to his promise that another capital-gains tax increase will not be introduced.

A proposed increase was paused because former PM Justin Trudeau prorogued Parliament before legislation tied to it could be passed. The proposed increase led to a spike in CRE sales across Canada prior to June 30, 2024 as investors sought to avoid its effect.

The situation caused a great deal of sellers’ remorse and forced the Canada Revenue Agency to provide rebates after already having implemented it.

However, Carney will need help to achieve his aims as the Liberals former another minority government. Time will tell whether the Liberals can again rely on support from the NDP, which suffered a crushing election setback.

The NDP lost its official party status, meaning that it will no longer receive parliamentary funding, after falling under the required 12 seats. Jagmeet Singh resigned as NDP leader as he was handily defeated in his Vancouver-area riding of Burnaby Central.

But arguably, the Liberals need the NDP more than ever. It remains to be seen whether the Liberals will look to the Bloc Quebecois, a traditional nemesis, to align with them on key issues.

The separatist Bloc may have other ideas as it focuses on issues tied to Quebec, the only province in which it runs candidates. But the Bloc suffered a loss Monday as the Liberals posted gains in Quebec, contrary to earlier expectations, and may need to prove further that the party opposes Trump.

Polievre might also become slightly more conciliatory after the Conservatives were disappointed Monday. The Tory leader had campaigned largely on tougher crime policies and more fiscal restraint, two of the party’s traditional planks, before focusing more on the battle against Trump.

Polievre’s strategy came under criticism from within his party. Voters in his riding also opposed it.

The populist, an MP since 2004, lost his Ottawa-area seat to a Liberal newcomer and must now find a willing Tory MP to resign in a party stronghold and allow for a by-election.

“What [Carney’s win] shows is that when Pierre Poilievre was high in the polls, it wasn’t about him ,” pollster Nik Nanos, chief data scientist at Nanos Research told The Globe and Mail.

“It was about a repudiation of the Liberals and dislike of Justin Trudeau.”

Carney had previously been a rare unelected PM due to the prorogation of Parliament before he claimed the Liberal leadership.

Now, he must be a rare politician who succeeds against Trump as Canada repudiates his policies.

Pictured: Newly elected Prime Minister Mark Carney

Photo: Harrison Ha / Shutterstock

Be there on May 28 | Toronto: Canadian CRE leaders will be at Connect Canada on May 28th 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.