What the War in Ukraine Means for U.S. Commercial Real Estate Investors

• Russia-Ukraine war creating uncertainty, but ultimately minimal direct impact for CRE investors

• Russian exports of energy and metals will likely slow, stoking inflation

• Inflation already elevated and could get worse – CRE remains a great inflation hedge

• Conflict creating many uncertainties, which could drive investors to safer investments

• A “flight to safety” in the bond market could place downward pressure on interest rates

• However, elevated uncertainty could also hurt confidence levels and weigh on investment activity

• Overall, the implications for CRE remain very limited, barring a major escalation