Love, Logistics and the Long and Winding Road of Commercial Real Estate

By Kathryn Hamilton, CAE for Market Share Blog | November 3, 2025

At I.CON Central this week in Columbus, Ohio, Global Client Strategist and Senior Economic Advisor for CBRE Spencer Levy framed his keynote with a theme few would expect in a discussion about commercial real estate: the Beatles.

Levy opened by telling the audience that much like the iconic band, CRE thrives on emotional resonance, innovation and the ability to adapt to changing landscapes. As he put it, “persuasion is not an intellectual process; it’s an emotional one,” noting that the Beatles mastered this principle in their music and that the real estate sector should emulate them.

Levy reflected on the past decade of commercial real estate gains. Between 2012 and 2022, 75% of returns came from cap rate compression. But as Levy emphasized, the next decade of growth will come not from compressing rates further, but from operational excellence.

Levy emphasized that just as the Beatles evolved, real estate investors must embrace diversification and creativity. Alternative asset types such as senior housing, student housing, industrial outdoor storage (IOS) and data centers are emerging as critical components of a modern portfolio. Investors who recognize these shifts – and manage operations actively – are positioned to outperform. “Everything is operational real estate now,” Levy observed, noting that institutional investors are increasingly buying pieces of businesses, not just the buildings themselves.

Levy is particularly fond of IOS, which he noted is often overlooked, highly supply-constrained and increasingly attractive to investors. He underscored that the market is not static: while cap rates are unlikely to compress significantly further, net operating income can be expanded through strategic top-line growth and expense management.

Macro Trends: Life Goes On

Levy then took a step back to consider macroeconomic factors, echoing the Beatles’ philosophical lyric that “life goes on.” Despite global uncertainties such as trade tensions, regulatory shifts and interest rate fluctuations, the fundamentals of commercial real estate remain intact. Interest rates, while higher than recent historic lows, are beginning to ease, which may stimulate deal flow and investment activity. Artificial intelligence and productivity gains are poised to reshape the economy, potentially boosting GDP in ways that echo past technological transformations. Yet Levy reminded investors to stay grounded: population trends, infrastructure and labor markets are the enduring drivers of opportunity.

For Levy, risk management is as much about local insight as global awareness. He cited the example of foreign investment, noting that when President Donald Trump introduced his tariffs plan in April 2025, immediate hesitation came from international buyers; however, structural factors such as a weaker dollar, favorable regulations and safe-haven perceptions suggest that capital will return. “Math wins in the end,” he said.

Come Together: Columbus, Ohio, as a Hub of Opportunity

Throughout his remarks, Levy frequently referenced the conference host city of Columbus, Ohio, portraying it as a microcosm of the broader industrial and logistics opportunity in the Midwest. Columbus exemplifies resilience and strategic advantages: low energy costs, improving infrastructure and a growing manufacturing base are all attractive to investors. Levy highlighted the city’s ability to attract high-quality labor, noting that tech companies and industrial operators alike evaluate workforce quality before committing to expansion.