THE LATEST ECONOMIC TRENDS IN CRE | February 2025

Written by: Collin Fitzgerald

Economic Resilience and Its Impact on Columbus Commercial Real Estate

The slowdown in GDP growth and the modest decline in private domestic sales suggest that while the broader economy faces headwinds, underlying demand remains solid. For the Columbus commercial real estate industry, this resilience is crucial. Strong consumer spending, which accelerated to 4.1% in the fourth quarter, indicates continued retail and logistics demand, benefiting industrial properties that support e-commerce and supply chain operations. Although equipment investment fell, the weakness was concentrated in aerospace, meaning Columbus' diversified industrial sector may remain largely insulated. A post-strike rebound in aerospace investment could also bring indirect benefits through supply chain and manufacturing activity.

Source: MarketWatch, Trading Economics

Our Take

Despite the slight slowdown in GDP growth, the Columbus commercial real estate market remains well-positioned for stability. The strong consumer spending trends will continue to drive demand for industrial and logistics properties, supporting new development and leasing activity. While economic disruptions in Q4 were notable, they were largely sector-specific, and the expectation of a rebound in early 2025 suggests minimal long-term impact. Columbus' industrial market, bolstered by a diverse tenant base and strong regional demand, is expected to maintain steady momentum throughout the first half of the year.