(Featuring Martha Peyton, Managing Director, Head of Global Applied Research, Aegon Asset Management)

For commercial real estate investors, inflation fears are real—but are they rational?

https://www.afire.org/podcast/revisitinginflationcast/

Investors cite inflation hedging power as one of the primary attractions of property investments. This characteristic has been of limited use in recent years given the very low pace of inflation in the US and throughout most developed global markets, leaving other factors to drive the investment allure of real estate. Currently, inflation fears are emerging and raising concerns regarding potential negative effects on discount rates used to value portfolio properties, as well as potential positive effects on property cash flows.

However, according to Martha Peyton of Aegon Asset Management, inflation fears are potentially overblown, based on current macro-economic conditions. And, expectations of problematic inflation may actually have a negative impact on commercial property dynamics if they become pervasive.

Listen now on your favorite podcast service (Apple, Google, Spotify) for the full episode.