After eight consecutive quarters of declines, the NCREIF Property Index (NPI) total return improved in second quarter 2017. These 7,161 commercial properties, totaling $539.2 billion of market value, had a 1.75 percent total return in second quarter 2017, up from 1.55 percent in the previous quarter. This, however, was below the 2.03 percent total return in second quarter 2016.

The quarterly NPI total return remains in modest territory, below its since-inception average of 2.26 percent. Yet, the 1.75 percent total return reflects some stability over the past four quarters, when returns have ranged from 1.5 percent to 1.8 percent. Over the same period, 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 range of 0.4 percent to 0.6 percent. 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