Early signs of rising inflation are beginning to show up in the marketplace

• Two main factors point to an increase in inflation over the short-term:
  • Government spending flooded the market with cash to offset the pandemic
  • Production pipelines thinned and supply chains can’t keep up

As a result, demand for goods/services is outpacing supply, driving prices up

• Real estate is known as a strong hedge against inflation
  • Many lease terms include inflation escalation clauses that automatically lift rents
  • Leveraged returns are amplified in a rising inflation environment

Those looking to diversify their exposure to inflation risk, may find CRE as an attractive investment option