Private equity real estate produced total returns of 3.6% in the first quarter of 2015, its strongest performance since the second quarter of 2011. Total returns of 12.7% on a trailing 12-month basis were at their highest in three years.
The industrial (14.2%) and retail (13.8%) sectors led total returns in the first quarter of 2015 on a 12-month trailing basis, while apartments (11%) lagged behind. The office sector (12.7%) is trending positively, having underperformed over the past several years.
The Bay area (San Francisco, San Jose, and Oakland) remained a standout performer. Los Angeles, New York, and Boston generally performed well in the office sector but less well in the apartment sector. Large sunbelt markets including Atlanta and Phoenix have showed signs of strength.
Source : Deutsche Asset & Wealth Management