The US commercial real estate recovery is in its eighth year, but we believe it still has room to run amid reflation, competitive rental yields and potential for operating income growth. This week’s chart helps explain why. Resilient rental income has helped support US real estate returns during past rate-hiking cycles, especially during more gradual ones like today’s. See the green bars in the chart above. And commercial properties are typically able to raise rents in reflationary periods, albeit often with a lag, providing some inflation protection.