Commercial real estate and inflation: is it really a good hedge?

Written by Rupert Sheldon, Head of Core REIM

It is a long-held belief that real assets generally and commercial real estate more specifically, represent a good hedge against inflation. Well, here we are in inflationary times so let’s put that theory to the test and see if this conventional thinking is correct.
The answer, as with many complex and multi-layered issues, is that it depends!

Before looking into the detail, let’s consider where we have come from and how we got here, as this offers the key to how commercial real estate can help investors as the market moves through the next, most perilous phase of the economic cycle.