I will say the prices here are quite inflated and there are still inherent issues in the area.

Calculation #2 If inflation is 4% a year?

Unless you're using value of money calculatons, it stays flat or goes up due to inflation of rents.

Jordan,There are single,double,and triple net leases.The ability to re-purpose the building fast and cheaply is key.Certain corporate tenants with the building design if they go out you have massive costs to get it to a rentable state for another tenant type.Case in point I know a Sonic building that has sat as a foreclosure for a year.To re-purpose it you would have to take out the drive thru stalls and the building itself is so small you can't do much with it.One key area I didn't see touched on is that YES with a TRUE triple net you do not pay for anything.With other single or doubles you might get a little more but pay for expenses so it's almost a wash in the end.The lease is guaranteed and you get mailbox money.The down side is these tenants have rents stay the same amount for long periods of time before any increases and when it does increase the rate is marginal.So when inflation kicks in year after year the returns are diminishing.If you are trying to protect your money they can be an excellent investment.Tell us more about your situation which will help.I like corner locations or right next to the corner as they hold value and are easier to re-purpose and re-rent.Even though the rent doesn't increase as much the land should be way more valuable in time unless the area dies off and growth migrates elsewhere.You can also assume loans at sometimes 90 ltv putting down just 10%.The reason is lenders see these loans as having little risk and low chance of default.I specialize in multi-family and also triple net so contact me with any questions you have.

The Government actually LOVES INFLATION.

Lots of folks though the bubble would keep inflating forever and made lots of speculative plays.

Inflation numbers still aren't great and the FED will likely raise interest rates another .75-1% so I don't see the current market trend immediately changing.

Great to have an income stream that combats inflation!

.- The Fed is expected to increase the Fed Funds target rate by 0.25 in February, following their current plans to continue rate increases but at a lesser pace until inflation is under control.

If you hold it long enough and are in a decent area inflation will do its thing.