How Does Commercial Real Estate Help Investors Hedge Against Inflation? by Christopher Sanz, JD, LLM

Posted on May 26, 2021

As consumer prices surged in April, so did the rate of inflation, which reached its highest level in more than a decade and signaled a potential warning to stock and bond investors. As inflation rises, consumers spend less, driving down corporate revenue and profits while increasing market volatility. This rule of thumb does not apply to investments in commercial real estate, which have historically realized higher property values and rental income during inflationary periods. With commercial property’s demonstrated resilience during the past year’s COVID crisis, investors have the ability to stay ahead of inflation with rental income outpacing pricing.

With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.