Conventional wisdom suggests that commercial real estate is a good hedge against inflation. But since inflation is expected to remain at about 2 percent per year for the foreseeable future, Martha Peyton advises investors to look at the overall performance of a property or pooled investment fund rather than its utility as an inflation hedge.
The Wall Street Reform and Consumer Protection Act is intended to guard against the excesses that led to the economic crisis. But when it takes effect in July, it may also have some negative effects on financing of commercial real estate. Sabeth Siddique talks about the possible implications.
Proposed changes by the Financial Accounting Standards Board to lease accounting rules could make record-keeping a lot more complicated and lease negotiation more difficult, says Marc Betesh, president of KBA Lease Services and Visual Lease in Woodbridge, N.J.