The NCREIF Property Index, or NPI, started 2015 on a strong note and continued into the second quarter with a solid quarterly performance of 3.14 percent. This total quarterly return from the NPI’s $443 billion of commercial real estate investments trailed the robust first quarter return of 3.57 percent, yet outpaced the 2.91 percent returned during the same quarter a year ago. In the second quarter, the NPI total return consisted of a 1.26 percent income return and an appreciation return of 1.89 percent. The total return for the year ending second quarter 2015 was 12.98 percent, consisting of a 5.20 percent income return and 7.49 percent appreciation return.

Industrial took the lead among property types for both second-quarter and trailing-year returns, with a total return of 3.78 percent in the second quarter and an annual return of 14.80 percent. Retail was the laggard for the quarter with a 2.96 percent return, the only sub–3 percent return across all property types.