It could portend more cash flow volatility for owners, as well as more concessions and increased capital costs.

There are three factors driving inflation right now, including a housing shortage.

Secondary markets drove the absorption of office space in the second half of 2021.

"The combination of ongoing increases for building materials, worsening skilled labor shortages and higher mortgage rates point to declines for housing affordability in 2022."

Trepp's overall CMBS delinquency rate increased last month for the first time in 18 months.

Fitch now anticipates RevPAR to recover to about 70% of 2019 levels in 2022, with most of the recovery happening in the second half of the year.

Non-traditional property sectors like manufactured homes, gaming, cold storage, healthcare and single-family rentals will lead the way.

"While Omicron is a little different, we think most of the evolutionary decisions have already been made."