THE LATEST ECONOMIC TRENDS IN CRE | March 2025

Written by: Collin Fitzgerald

Trade Uncertainty and its Impact on Columbus Commercial Real Estate

The initial optimism among retailers and businesses at the start of the year has been tempered by ongoing trade wars, which have weakened consumer sentiment and contributed to stock market volatility. While overall retail sales struggled, the strong performance of online retailers (+2.4%) signals continued growth in e-commerce, a key driver for Columbus’ industrial real estate sector. The slowdown in auto sales and restaurant spending may indicate a shift in consumer behavior, which could impact retail space demand in certain areas. However, the "control group" measure’s 1% rise suggests that overall economic growth may not be as negatively affected as feared, providing some stability for commercial real estate markets.

Source: MarketWatch, Trading Economics

Our Take

For Columbus commercial real estate, the evolving retail landscape presents both challenges and opportunities. The strength of e-commerce supports continued demand for warehouse and distribution space, reinforcing the region’s position as a logistics hub. However, weaker brick-and-mortar sales, particularly in auto and restaurant sectors, could soften demand for traditional retail spaces. Investors and developers should focus on adaptive reuse strategies and mixed-use developments to accommodate shifting consumer preferences. While economic uncertainty remains, Columbus’ industrial market is well-positioned to capitalize on the ongoing growth of online retail and last-mile distribution.