Commercial real estate is one of the best inflation-hedge investments with interest rates expected to rise in the next six months in part from the Federal Reserve tapering of Treasury and mortgage-backed securities purchases, according to John Chang, Senior Vice President and National Director Research Services at Marcus & Millichap.
Chang noted in the third quarter commercial real estate volume is up 19% compared to the third quarter in 2019, adding that the rise in rates isn't expected to lower CRE volume because there is too much capital looking for yield.
At the start of the pandemic the Federal Reserve restarted its quantitative easing program to put more cash into the economy by buying $120 billion a month in assets which has kept interest rates low, Chang said.
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