The NCREIF Property Index (NPI) has recorded a total return of 5.23 percent for third quarter 2021, consisting of income of 1.05 percent and appreciation of 4.18 percent, up from a total return of 3.59 percent in the previous quarter, according to the National Council of Real Estate Investment Fiduciaries (NCREIF). This is the highest quarterly return since fourth quarter 2005, when the return was 5.48 percent.
The NPI reflects investment performance for 9,703 commercial properties, totaling $785 billion of market value. The performance reflects returns for what is primarily “core” real estate held by institutional investors throughout the United States.
According to the report, all property sectors showed improvement in the third quarter, compared to the previous one. Industrial properties — primarily warehouses — continued to lead with a quarterly return of 10.92 percent. Apartment returns followed with a quarterly return of 6.53 percent, and returns for offi