Some improvement in institutional property values, but returns still negative

The National Council of Real Estate Investment Fiduciaries (NCREIF) has released first quarter 2024 results for the NCREIF Property Index (NPI). Beginning this quarter, the Index includes all property sectors rather than the five sectors included in the previous NPI.

The expanded NPI now includes 12,745 properties, totaling just under $900 billion in market value.

The aggregate market value of the properties in this expanded NPI declined for the seventh consecutive quarter and returns were negative for the sixth consecutive quarter.

The market value index has declined by about 16 percent since the peak in second quarter 2022. This is still significantly less of a drop than occurred during the financial crisis in 2008 and 2009, when values declined by almost 30 percent. The total return for the quarter was negative 0.92 percent which is a significant improvement from the negative 2.94 percent in fourth quarter 2023.

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