Commercial real estate has long been regarded of an inflation hedge of sorts — but investors would be wise to do their diligence on demand dynamics and vacancy rates within individual markets, according to a new analysis from Nuveen.

"Real estate can keep pace with inflation assuming it is the right building, in the right location with sufficient demand to support higher rents," Nuveen analysts write. The firm recommends focusing on asset types like medical office properties in high growth cities and suburbs, or single-family rental or multifamily assets in the Sun Belt.

And for those wondering if there's any upside left to capture, Nuveen says the answer is a yes, at least for strategic market segments.

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