Eight Must Reads for the CRE Industry Today (May 26, 2021) Investors looking to commercial real estate as a hedge against inflation may be disappointed, warns The Wall Street Journal. U.S. companies are starting to snub SPACs, according to Reuters. These are among today’s must reads for the commercial real estate industry.
Investors Buying Real Estate to Beat Inflation May Find Tactic Backfires “Investors are eyeing real estate as a way to hedge against inflation. Many are bound to be disappointed. While single-family homes usually perform well during inflationary periods, values of offices, retail buildings and other commercial properties can tumble in value if owners aren’t in a position to increase rents, economists say. Since the Labor Department this month reported a 4.2% annual increase in April consumer prices the highest rate since 2008 the prospect of inflation has become an obsession in financial markets.” (