The NCREIF Property index returned 10.98% in 2013, up 44 basis points from 2012 when the index returned 10.54%. The return for the year was split fairly evenly – 5.16% from appreciation and 5.61% due to income.
Retail led all property types with 12.87% followed by industrial (12.32%), apartment (10.42%), office (9.86%) and hotel (7.68%).
In a news release, Fabiana Lotito, senior director, strategy and research at TIAA-CREF and chair of the NCREIF Research Committee, said, “The NPI has settled into a comfortable range between 10% and 11% per annum, where it has nestled for the past year and a half. In that zone, it continues to make progress toward achieving previous index highs. The appreciation component is now roughly 13% below its early 2008 peak.”