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How the Inflation Rate Hits a Little Too Close for CRE


Health epidemic. Financial crisis. Civil unrest. War. It sounds like the line of a Billy Joel song, but it’s the harsh reality of 2022. The annual inflation rate has accelerated to nearly 9% for the first time in four decades. And you don’t have to be an economist to understand the potential impact of the inflation rate, along with embargoes and sanctions, will have on global and local economies.

What this means for retailers

The supply and logistics chain, already under pressure from COVID-19 repercussions, struggles to manage the fluctuations in demand from the manufacturing industry. In addition, the energy crisis was well underway before the current state of world affairs, and Russia’s continued threats against Ukraine bring to the surface the impact of potential gas shortages and how that will affect production manufacturing lines.

Consumer spending is on the rise, but the allocation of discretionary income is likely to shift downward for non-essential items like apparel and entertainment, with widespread price surges for essential things like energy, food and shelter. Despite reports that the unemployment rate edged down to 3.8% in February, the increased pricing for consumer goods and services is close to reaching double digits –currently at 8.4%. A pricing arc that outpaces wage increases adds to the financial stressors affecting most folks’ budgets and bank accounts. It’s unclear if pricing will mirror or exceed pandemic costs, but retailers speculate how this economic development will ultimately affect their bottom line.

What it could mean for consumers

A new generation of spendthrift Americans embraced slow living during the pandemic, cooking at home, buying items on resale and becoming financially savvy about purchasing big-ticket items. We learned to accept that production and staffing shortages and supply chain stalls would be a part of the new normal. Although, I don’t know that we expected to feel an increased burn in our wallets as prices for even the most mundane skyrocketed. And, as retailers continue to face cost increases from suppliers, with additional increases pending, there is the concern that the financial burden will soon reflect in consumer pricing.

We already see a surge in gasoline prices. The Pacific Northwest has consistently had the highest per-gallon prices, a price point that has now spread across the nation. According to AAA, the average cost of unleaded gasoline in the U.S. was a record $4.33 a gallon, up 50% from a year ago. The last time gasoline was this expensive: at the height of the 2008 financial crisis. The timing of this increase is a bit precarious considering the push for workers to return to the office and the unlikelihood of corporations to share the burden of cost.

What it could mean for commercial real estate

Analysts have an eye on how the rising inflation rates could impact real estate, retail, and office, particularly. Investment in commercial real estate has been steady, with rental rates and property value likely to increase. In the short term, this is a win for REITs and landlords. Tenants, however, may have a more extensive cross to bear.

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Anjee Solanki

National Director, Retail Services & Practice Groups

San Francisco


In Anjee’s current role, as National Retail Director for the USA, she has developed strong relationships and strategic leadership to over 500 + retail professional nationally across 140 markets within Colliers for Investment Sales, Agency, Retailer Rep, and Retail Asset & Property Management.

Anjee Solanki brings 30 years of focused retail real estate experience to Colliers International.  She provides strategic retail advisory services to enhance value for her clients with her expertise in lifestyle, community, power center, neighborhood, mixed-use retail/residential, and resort retail. 

She has developed and manages strong working relationships with institutional and private clients such as State of Florida, State of Michigan, Heitman, Invesco, Grosvenor Americas, American Realty Advisors, TH Realty, PNC, and Zurich to name a few.

Her strategy identifies current market and property inefficiencies to capture untapped value through asset repositioning, releasing, redevelopment, rehabilitation, proactive management, and enhanced marketing. 

Creative problem-solving is her specialty, and she becomes a key stakeholder with national and international retailers, such as JPMC, Opry City Stage/Ole Red and Tim Hortons, and many others. Her highly focused approach reduces the risk profile and provides clients with a thoughtful approach executing strategic multi-year planning initiatives. 


Previously, Anjee served as Executive Vice President, Retail Services for Madison Marquette. She successfully assisted with repositioning community centers to lifestyle projects and identified opportunities to create value, resulting in higher returns for her clients. She also provided strategic analysis on complex redevelopment projects to address both the asset’s financial stabilization and/or the client’s exit strategy


Anjee continues to be an insatiable collector of all things retail. She’s a student of culture living next door to future shoppers, whose fleeting trends constantly change the retail landscape … driving retailers, landlords and developers crazy! Read her Blog at: 


Anjee is originally from Southern California and currently resides in San Francisco.  She is active in the Rincon Hill neighborhood residential improvement group, which participates in the public review of the highly anticipated Salesforce Transit Center in San Francisco.

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