Private real estate returned 2.63% in the third quarter, as measured by the National Council of Real Estate Investment Fiduciaries Property index. The return was made up of a 1.31% income return and a 1.32% appreciation return.
Hotels led all property types in the quarter with a 2.93% return, followed by industrial (2.92%), office (2.78%), apartment (2.53%) and retail (2.33%).
Over the last four quarters, the overall index posted a return of 11.26%. By type, retail was the best performer at 13.1%, followed by industrial (12.4%).
Mark Roberts, managing director and head of research and strategy, alternatives and real assets for Deutsche Bank Asset & Wealth Management said in a NCREIF news release, “with a stronger dollar and low inflation, real interest rates remain low while job growth and economic activity remain stable. In turn, real estate has delivered a competitive return relative to both the stock and bond markets over the last year and on a year-to-date basis."