The NCREIF Property index gained 2.9% in the second quarter of 2014, composed of 1.4% income return and 1.5% capital appreciation.
In the one-year period ended June 30, the index gained 11.21% -- split between 5.47% income return and 5.51% appreciation (components don’t equal the total because of compounding).
Industrial properties gained the most in the second quarter, returning 3.26%; apartment were the worst-performing group with a 2.41% return.
In the one-year period, retail topped property types with a 13.51% return.
Bill Hughes, global head of real estate research and strategy at UBS Global Asset Management and chair of the NCREIF board, said in a release, “Commercial real estate performance shows no signs of slowing, as the NPI total return increased during the second quarter from 2.74% to 2.91%...all sectors delivered strong performance for the quarter, but the industrial and retail sectors continued to produce the highest returns. This has been true for the past quarter, year-to-date and trailing four quarters.”