The NCREIF Property index posted a 3.09% return in the third quarter, consisting of 1.2% income and 1.86% appreciation during the quarter.
For the year ended Sept. 30, the index returned 13.5%.
Returns for the quarter were led by industrial properties (3.67%), followed by hotel (3.52%) and retail (3.11%). One-year returns followed the same order: industrial (15.6%), hotel (14.6%) and retail (14.4%).
"Property fundamentals were solid in the third quarter with occupancy up to 92.8% – the highest level in 14 years," NCREIF said in a news release. Net operating income grew 5.7% over the trailing one-year period.