Private Investment in Commercial Real Estate Rises Amid Longer Term Inflationary Fears By Christopher Sanz, JD, LLM

Posted on December 14, 2021

The annual inflation rate increased for the fifth straight month in September 2021, reaching a 13-year high of 5.4 percent, according to the Department of Labor. Fearing a prolonged period of inflationary pressure, many private investors have sought refuge in commercial real estate, which has historically weathered these headwinds. In fact, according to Real Capital Analytics, commercial property sales during the past nine months were up 10 percent from the same period in 2019, before the pandemic.

As an asset class, commercial real estate generally provides a hedge against inflation, providing investors with steady rental income and the potential for both rent increases and ultimately higher property values that often outpace inflation over the longer term. The challenge for investors, especially in in markets with rising demand and lower inventory, however, is finding the right property in the right location and at the right price point to meet their unique needs and goals. Working with experienced real estate investment advisors can go a long way toward finding that proverbial needle in the haystack and helping often before a property hits the market.

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.