Overall, the CRE market is not entirely insulated from the impacts of rising inflation, as it tends to increase the cost of labor, construction and operations, which ultimately adds pressure on supply and demand trends and can increase the probability of interest rate hikes. But some commercial real estate assets classes are more affected by inflation than others.

"Generally speaking, the faster an asset class can increase its net operating income through rental rate increases while the lower its operating expenses are as a percentage of rental revenue, the stronger the hedge it offers against the erosion of real returns during high inflationary periods," says Ian Formigle, Chief Investment Officer of CrowdStreet.

CrowdStreet analyzed common commercial property types and ranked them across a spectrum, based on the level of control owners have over NOI and asset value.

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Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.