Fueled by a record performance in the industrial sector, the NCREIF Property Index (NPI) registered a total return of 3.59 percent for second quarter 2021, up from 1.72 percent in the previous quarter. The latest figure marked the highest quarterly return by the NPI since second quarter 2011, when the return was 3.94 percent. The total return of 3.59 percent for the quarter consisted of 1.06 percent of income and 2.54 percent of appreciation, compared with 1.04 percent of income and 0.67 percent of appreciation in the first quarter of the year.
Although all property types recorded improved performance quarter-over-quarter, the industrial sector continued its streak of outperformance. Industrial returns were 8.88 percent in the second quarter, the highest return in the entire history of the NPI. Apartments posted a quarterly return of 3.62 percent, followed by office, retail and hotel with returns of 1.44 percent, 0.90 percent and 0.61 percent, respectively.