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Writer's pictureColliers | Columbus

THE LATEST ECONOMIC TRENDS IN CRE | AUGUST 2024

Written by: Collin Fitzgerald

  • Supply chain disruptions have become a major economic concern in recent months.


  • Factors such as geopolitical tensions, natural disasters, and labor shortages have strained global supply chains, impacting everything from raw materials to finished goods.


  • As companies reevaluate their supply chain strategies to mitigate risks, there is a growing trend toward onshoring and local sourcing.

The chart shows a downward trend in global trade volume and an upward trend in shipping costs over the past year, highlighting the impact of supply chain disruptions on international trade.


How This Impacts Commercial Real Estate and the Columbus Market

The economic outlook presented highlights the persistent supply chain disruptions and their broad impact on global trade and economic conditions. This situation is closely connected to the industrial commercial real estate market, particularly in areas like Columbus, Ohio. As companies reevaluate their supply chain strategies to mitigate risks, there is a growing trend toward onshoring and local sourcing. This shift increases the demand for industrial spaces such as warehouses, distribution centers, and manufacturing facilities, driving growth in the industrial commercial real estate sector.

 

In the context of Columbus, this demand aligns with the city's growing reputation as a logistics hub. The city's strategic location, with access to major highways and proximity to a large portion of the U.S. population, makes it an attractive spot for companies looking to establish or expand their operations. As global trade faces disruptions, companies increasingly seek to minimize risks by establishing more resilient supply chains. This shift will likely further boost the demand for industrial real estate in Columbus, where businesses can find the infrastructure and logistical advantages necessary to support their operations.


Our Take

While the current supply chain challenges create headwinds for global trade, they also present opportunities for the industrial commercial real estate market, especially in regions like Columbus. The emphasis on local sourcing and the need for more reliable supply chains could lead to sustained demand for industrial properties, particularly in logistics and manufacturing hubs. However, the situation remains fluid, and the ongoing economic conditions must be monitored closely to assess the long-term impacts on global trade and local real estate markets.

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