What Investors Should Know About The Latest Inflation Data

• Inflation Rose at Highest Pace in 41 Years

  •Driven by energy prices, CPI inflation surged 9.1% in June over last year

  •Declines in fuel and commodities prices may ease inflationary pressure

• Aggressive Fed Action Expected

  •Fed likely to raise interest rates by 75-100 bps on July 27

  •Abundant capital continues to target CRE; Mitigates risk of market softening

• Implications for CRE

  •Financial market volatility benefits stable investments such as CRE

  •Inflation resistant properties favored

  •Higher yield secondary/tertiary markets increasingly favored

  •Commercial assets with rent escalators and properties with short-leases or value-add opportunities favored