How the Federal Reserve responds to inflation could create headwinds for the commercial real estate market, particularly as the Fed walks back earlier efforts to keep the pandemic-era economy in motion.
"Inflation is not the enemy of commercial real estate," says John Chang, senior vice president and director of research services at Marcus & Millichap.. "In fact, inflation can help investors boost their cash flow and property valuations."
But there's always a but, Chang says: while the Fed typically targets inflation in the 2% range, it currently sits at between 5 and 7%.
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