The total return for the NCREIF Property Index (NPI) increased again during second quarter 2021, taking it to the highest return in the past 10 years. The NPI has grown to 9,513 commercial properties, totaling $742 billion of market value.

The quarterly total return was 3.59 percent, up from 1.72 percent in the prior quarter, higher than second quarter 2020’s return of –0.99 percent, and the highest return since second quarter 2011, when the return was 3.94 percent, although it came close in first quarter 2015 at 3.57 percent. These are unleveraged returns for what is primarily “core” real estate held by institutional investors throughout the United States. Properties with debt financing had a leveraged total return of 4.09 percent. As of quarter-end, there were 4,155 properties with leverage, and the weighted average loan-to-value ratio was 45 percent.

The total return of 3.59 percent for the quarter consisted of 1.06 percent of income and 2.54 percent of appr