Modest commercial property performance continues through midyear
The quarterly NPI total return remains modest, although breaking its eight-quarter downward trend. The total return was 1.75 percent in the second quarter 2017, up from 1.55 percent last quarter, but below the 2.03 percent returned in second quarter 2016. The second quarter 2017 total return consisted of a 1.16 percent income return and 0.59 percent appreciation. Over the past four quarters, both components of the total return have been relatively stable with the quarterly income return ranging from 1.14 percent to 1.16 percent and appreciation in the 0.40 percent to 0.60 percent range.
For the trailing year, the annual NPI total return was 6.97 percent, consisting of a 4.69 percent income return and 2.20 percent appreciation. For longer-term context, the annualized average total return for the past five years was 10.49 percent and 6.42 percent over the past decade.
Total returns by asset class
The NPI represents unleveraged property performance