Commercial real estate returns end year on high note

The total return for commercial real estate was 1.55 percent in the fourth quarter, which was an increase from the 1.41 percent return reported for the prior quarter, according to The National Council of Real Estate Investment Fiduciaries (NCREIF) in its fourth quarter 2019 results for the NCREIF Property Index (NPI).

The return was also higher than the fourth quarter of 2018, which was 1.37 percent. This is an unleveraged return for what is primarily “core” real estate held by institutional investors throughout the United States.

The total return of 1.55 percent consisted of an income return of 1.10 percent from net operating income (NOI) and a capital return (change in value net of capital expenditures) of 0.45 percent.

To read more of the results, click here.