The return for institutional investors as measured by the NCREIF Property Index (NPI) increased during fourth quarter 2020. The NPI reflects investment performance for 9,289 commercial properties, totaling $700 billion of market value.

The quarterly total return was 1.15 percent, up from 0.74 percent in the prior quarter. The fourth quarter return was the highest in 2020, amid the COVID-19 pandemic, although off the highs from the prior year. This is an unleveraged return for what is primarily “core” real estate held by institutional investors throughout the United States. Although leverage was negative for the quarter, the leveraged properties also managed to have a slightly positive return of 0.33 percent.

The total return of 1.15 percent for the quarter was primarily due to an income return of 1.01 percent. Price levels before capital expenditures increased by 0.49 percent but the capital expenditures offset most of that increase.

The turnaround in total