THE LATEST ECONOMIC TRENDS IN CRE | April 2025

Written by: Collin Fitzgerald

Inflation Trends and Their Impact on Columbus Commercial Real Estate

The March Consumer Price Index (CPI) report showed some relief from inflation, with headline CPI falling 0.1%—the first decline since May 2020—and year-over-year inflation easing to 2.4%. However, core CPI, which excludes volatile food and energy prices, rose 2.8% annually, indicating persistent underlying inflation. While energy costs are currently helping lower overall inflation, new tariffs are expected to reintroduce upward price pressures in the coming months. For the Columbus commercial real estate industry, this mixed inflation picture suggests a complex environment. Initially, easing inflation supports consumer spending and business confidence, which could boost retail leasing and investment activity. However, if tariffs cause renewed price increases and erode disposable income, tenant demand, particularly in the retail and office sectors, could soften later in the year. Industrial demand, especially for logistics facilities, may remain resilient as businesses prioritize supply chain efficiency to manage rising costs.

Source: Oxford Economics, Bureau of Economic Analysis

Our Take

Columbus' commercial real estate market is positioned to weather these economic shifts, but caution is necessary. In the near term, lower inflation provides a window of opportunity for growth in leasing activity and investment transactions, especially in sectors tied to consumer spending. However, the looming effects of tariffs and potential inflation resurgence could cool momentum by late 2025. Investors and landlords should focus on high-credit tenants and essential service sectors—such as healthcare, logistics, and grocery-anchored retail—which are more insulated from consumer spending volatility. Columbus' affordability, diverse economy, and strategic location should continue to support relatively stable real estate fundamentals, even if national economic conditions become more challenging.