The total return for institutional investors as measured by the NCREIF Property Index (NPI) was 1.80 percent in first quarter 2019, up from 1.38 percent in fourth quarter 2018. The return for the first quarter was above the average quarterly return over the past four quarters, which was 1.67 percent or 6.83 percent annualized. The total return consisted of an income return of 1.11 percent from NOI and a capital return of 0.69 percent. The positive capital return indicates, on average, properties in the NPI are still increasing in value after deducting capital expenditures that have been added. Thus, the commercial real estate market as reflected by the NPI had not yet peaked during the first quarter, as some thought might occur.

Returns for retail properties rebounded during the quarter from a negative 0.43 percent in the previous quarter to a positive 1.74 percent, and retail was the main sector that contributed to the upswing in the NPI during the quarter. Industrial proper