We believe the link between real estate cashflows and inflation to be overplayed, a view that is backed up by the evidence of the last 44 years. But there are exceptions. One of which is low vacancy rates, which support strong NOI growth, as we expect in industrial property. The second is residential assets, where the link between demand and wages means that apartments will tend to act as an inflation hedge.
In view of the wider interest, we are also sending this US Commercial Property Update to clients of our US Housing Service.
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