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Rising oil prices could affect CRE

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Rising oil prices and unstable Middle East regimes could mean double trouble for the global economic recovery, but could benefit some segments of the commercial real estate market, REIT.com reported. According to Jonathan Litt, managing principal of Land and Buildings Investment Management LLC, the worldwide economy’s dependence on oil and the impact of higher oil prices on growth will weigh heavily on equity markets and could create attractive buying opportunities for investors. “Real estate will likely serve as a store of wealth in an inflationary environment as rents and occupancies would move higher in the face of little new construction and modest economic growth,” Litt said, noting that higher interest rates have often provided a good environment for real estate valuations to increase during the onset of economic recoveries.