How Do Economic Risk Factors Impact Real Estate?

• Economic risks like COVID and inflation cloud the outlook

• But not all sectors of commercial real estate are impacted in the same way

• Risk of pandemic-driven disruptions appear to be decreasing, but still a major factor

  • • Most Risk -> Seniors Housing, Hotel and Multi-Tenant Retail

  • • Less Risk -> Self-Storage and Multifamily

• Hard assets like real estate tend to be a good inflation-hedge

• Impact of inflation scale of 1-10 (1 least; 10 most)

  • • Office (3-5), MT Ret. (3-5), ST Ret. (3-5), Seniors (3-4), MOB (2-4), Apt. (1-3), SS (1-3), Hotels (1-2)