How Inflation Really Affects Commercial Property

When inflation rises, most commercial property investors focus on one thing: rent reviews.But inflation impacts far more than rental income.In this episode, I explore how CPI, RPI and wider inflationary pressures affect commercial property tenants, from rising wages and energy costs to increasing service charge budgets and insurance premiums.I discuss why understanding inflation can help investors assess tenant affordability, covenant strength and future risk, and why a successful rent review means very little if the tenant cannot comfortably absorb the increase.Topics covered include:The difference between CPI and RPIWhy landlords often favour index-linked rent reviewsHow inflation affects tenant profitabilityThe impact of rising service charge and occupation costsWhy occupation cost matters more than rent aloneUsing inflation as an indicator of covenant strengthQuestions investors should be asking about tenant affordabilityInflation doesn't just affect rental growth. It affects the businesses paying the rent. Understanding that distinction can help investors make better decisions around acquisitions, asset management and long-term portfolio performance.