Commercial Investment Real Estate as an Inflation Hedge

I read an update from the 1031 exchange specialist, Steve Rosansky, regarding increased inflation in the near future and using commercial investment real estate as a hedge.

We’re starting to see the signs of increased inflation with commodity prices up about 7% in the last year and food prices up 20% in the same period.  Now with gas prices on a rapid run up, this is something to consider in the near term future.

Real estate values tend to rise at a rate very close to the rate of inflation.  A study of the correlation between various asset classes and inflation between 1978 and 2008 shows that real estate returns have the highest correlation.

For more see attached.

Real estate and inflation

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