Commercial real estate has shown steady improvement in performance in the second quarter. The NCREIF Open-end Diversified Core Equity Index (ODCE) and NCREIF Property Index (NPI) both surpassed their first quarter returns in the second quarter, according to the National Council of Real Estate Investment Fiduciaries (NCREIF).
The NPI total return for the second quarter is 2.87 percent, composed of 1.4 percent income return and 1.47 percent appreciation. Appreciation drove the uptick, which was a 30 basis point increase from the total return for the NPI in the first quarter. In the first quarter, the NPI returned a total of 2.57 percent, 1.18 percent of which was appreciation. The second quarter return is the strongest return since fourth quarter 2011, when the NPI posted a total return of 2.96 percent.
The top-performing sector was industrial, which returned 3.22 percent. This is the fir
