- December 1, 2019: Vol. 31, Number 11

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Mixed bag: Returns down slightly, but market values reach another new high

by Jeffrey Fisher

The return for institutional investors as measured by the NCREIF Property Index (NPI) was 1.41 percent in the third quarter, down slightly from 1.51 percent last quarter. The return for this quarter was slightly below the average quarterly return over the past four quarters, which was 1.53 percent or 6.25 percent annualized. This is an unleveraged return for what is primarily “core” real estate held by institutional investors throughout the United States. The total return of 1.41 percent consisted of an income return of 1.11 percent from NOI and a capital return of 0.30 percent.

Although returns were down slightly for the quarter, market values reached another new high as indicated by the NCREIF Market Value Index (MVI). The MVI tracks how estimated sale prices are changing over time for properties in the NCREIF Property Index. Market values have been rising steadily since the recovery from the great recession began in 2010.

Returns for retail properties reversed c

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