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Commercial Real Estate: Is It a Good Hedge Against Inflation?

60 mins.
09 NOVEMBER, 2023
ANALYSTS:
Ya-lan Liu
Ignacio de la Torre, Ph. D.
Leopoldo Torralba
CATEGORIES:
Real Estate Global AER Global
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What does rising inflation mean for Commercial Real Estate? When investing in commercial property in a high-inflation environment, a typical investor concern is the impact of rising interest rates on values. Overall, the impact is both nuanced and multi-faceted as potential value adjustments vary by property type, lease structure, asset holding period, economic conditions, and outlook. We review the capacity of commercial real estate to offer inflation protection and provide our key findings for investors.

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