When currency loses purchasing power, property values tend to increase, along with commercial rental rates and lease renewals. This is especially true for established commercial real estate properties purchased at lower interest rates before inflation started.
As the Federal Reserve raises interest rates to combat inflation, owning CRE becomes even more valuable. While the property’s cost remains the same, its worth keeps growing. Meanwhile, developing new properties becomes more costly due to increased labor and material expenses. This creates a higher demand for existing commercial properties, which benefits current owners. AARE (CRE) Commercial Real Estate provides a range of investment strategies to help investors benefit from this dynamic market.
Timing is key when using CRE as an inflation hedge. Short-term investments may not be as effective since inflation can cause the cost of goods, services, and labor to rise quickly. As such, investors should view CRE as a long-term inflation hedge and allow ample time for the investment to mature. AARE (CRE) Commercial Real Estate can offer expert guidance on the timing of CRE investments to maximize their effectiveness as an inflation hedge.
During inflationary times, it’s wise to consult investment professionals from AARE (CRE) Commercial Real Estate and explore investment strategies. Waiting too long can result in higher costs and missed opportunities. Don’t wait until it’s too late to invest in CRE. Inflationary pressures can make it more expensive and reduce the effectiveness of the investment as a hedge against inflation. Instead, be proactive and seek expert guidance from AARE (CRE) Commercial Real Estate to develop a sound CRE investment strategy that can weather inflationary times.