Office, Industrial and Apartment Values Down, Retail and Hotels Up: NCREIF

Originally published on April 28, 2023 by the Mortgage Banker's Association.

The National Council of Real Estate Investment Fiduciaries, Chicago, said its quarterly Property Index showed aggregate market values of properties declined for the third straight quarter; returns were negative for the second straight quarter.

The report said the market value index declined by 2.6% during the first quarter and the total return for the quarter was -1.81%. Although the return was negative, it was less negative than the -3.49% return during the 4th quarter and the decline in value was less than it was in the fourth quarter. The quarterly return consisted of 1.01% from income and -2.82% from negative property appreciation.

The -1.81% return is the unleveraged return for “operating properties” held by institutional investors throughout the U.S. As of quarter-end there were 4,717 properties with leverage and the weighted average loan to value ratio was 43%.

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