AFIRE Podcast #71: Are Inflation Fears Rational?

(Featuring Martha Peyton, Managing Director, Head of Global Applied Research, Aegon Asset Management)

For commercial real estate investors, inflation fears are real—but are they rational?

Investors cite inflation hedging power as one of the primary attractions of property investments. This characteristic has been of limited use in recent years given the very low pace of inflation in the US and throughout most developed global markets, leaving other factors to drive the investment allure of real estate. Currently, inflation fears are emerging and raising concerns regarding potential negative effects on discount rates used to value portfolio properties, as well as potential positive effects on property cash flows.

However, according to Martha Peyton of Aegon Asset Management, inflation fears are potentially overblown, based on current macro-economic conditions. And, expectations of problematic inflation may actually have a negative impact on commercial property dynamics if they become pervasive.

Listen now on your favorite podcast service (Apple, Google, Spotify) for the full episode.

This podcast is based on “Revisiting Inflation” from the summer 2021 issue of Summit Journal. Read the article here.

FEATURING

Martha Peyton, PhD, CRE, is managing director and head of global applied research for Aegon Asset Management, where she is primarily responsible for the development and application of research to real asset strategies.

Prior to joining the firm, Martha was managing director, head of real estate and global real assets research for TIAA. While at TIAA, she built and oversaw the research function for the commercial mortgage loan and real estate businesses. This included managing research staff; setting the research agenda; conducting ongoing monitoring and analysis of the investment environment and asset class performance; and authoring white papers and research publications. Martha has been in the industry for over 30 years and joined the firm in 2018. She received her BA, MA, and PhD in economics from Fordham University.

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The publisher of AFIRE Podcasts is not engaged in providing tax, accounting, or legal advice through this publication. No content published in the AFIRE Podcast is to be construed as a recommendation to buy or sell any asset. Some information included in the AFIRE Podcast has been obtained from third-party sources considered to be reliable, though the publisher is not responsible for guaranteeing the accuracy of third-party information. The opinions expressed in the AFIRE Podcast are those of its respective contributors and sources and do not necessarily reflect those of the publisher.

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Benjamin van Loon, Communications Director
bvanloon@afire.org | +1 202 312 1405