June 2025 Inflation Report: Service Sectors Continue to Guide CRE Demand

The June 2025 Inflation Report shows continued pricing stability, with headline inflation holding steady and services sectors sustaining commercial real estate activity. Core CPI rose 2.8% year over year, led by categories such as medical care, personal services, and day care. These trends are supporting demand in medical office, senior housing, and service-based retail centers as consumer spending shifts toward essentials.

🔹 2.8% increase in Core CPI year over year 🔹 Medical office records highest quarterly absorption since 2022 🔹 Service-based retail shows resilience

Consumer shifts are reshaping CRE demand.

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