How Does Inflation Impact Commercial Real Estate?
If you’re considering investing in a crowdfunded commercial real estate deal, or currently hold a stake in a crowdfunded deal, it’s important to understand the relationship between macroeconomic influences and commercial real estate (CRE).
One of the major macroeconomic influences on CRE valuations and profits for investors is inflation. Put simply, inflation is the rate at which prices for goods and services rise over time. But it’s important to realize that there are different types of inflation, with differing effects on CRE prices and investment performance. Let’s examine the main varieties and their impact on CRE.