The NCREIF Property Index (NPI) posted the twelfth quarter of positive total returns since the trough of the market, and returned 10.5% for 2012. Property values are currently 10% under the previous market peak.
The Retail sector was the top performing sector during 2012, returning 11.6%. The super regional mall subsector, which is 28% of retail by value, buoyed performance.
Only the office property type underperformed the overall index, while the other three major types outperformed. Office properties in Washington, Los Angeles and Boston, which make up 30% of the office sector index, underperformed the all property index by more than 350 basis points.
Source : RREEF Real Estate