Glenn Mueller, PhD., Professor at the Franklin L. Burns School of Real Estate and Construction Management, University of Denver, and Academic Director at the Family Office Real Estate Institute provided a topic which is very timely in regards to real estate vs inflation and interest rates that family offices should be aware of.
Many investors and family offices are worried about inflation and higher interest rates, and are worried about investment returns, being affected by higher inflation and interest rates.
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A Question of when real estate performs the best can bee seen by examining the spread of real estate returns over the indexes. Exhibit 2 below shows that over 40 years real estate has provided 2.84% better returns than the risk-free interest rates of the 10-year treasury bill, and 5.31% better than inflation (hence real estate is a good hedge against inflation). create heading for this content
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