the GICS reclassification for real estate, a rent derivatives market extends
hedging opportunities beyond the ability to manage real estate risk associated
with interest rates and inflation, and rent derivatives gains the dominant
position in the supply and demand of commercial real estate pricing.
the emphasis on the new IRS 842 classification prompts new diversification and
allocation to the real estate sector, holders of equity and debt will expect
new financial instruments to reduce specific risk associated with balance sheet
exposure and the ability to hedge supply and demand cycles of rent.
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