The Market Value Index of the properties in the NCREIF Property Index (NPI) leveled off in the third quarter after eight consecutive quarters of decline. Returns for the NPI turned positive at 0.83 percent after seven quarters of negative returns. The Expanded NPI includes all operating properties and enhances reporting to include several new property sectors and subsectors.

The 0.83 percent total quarterly return consisted of 1.20 percent from income and –0.37 percent from negative property appreciation. Appreciation is after the deduction of capital expenditures. The 0.83 percent return is the unleveraged return for “operating properties” held by institutional investors throughout the United States.

All sectors positive except office

All property sectors were able to produce positive returns in the third quarter, with the exception of office properties, which dragged down total returns. Hotels continued to have the highest return (2.67 p