Unlevered total returns to core commercial real estate measured by the NCREIF Property Index (NPI) slipped to 7.3% (trailing four quarters) in the first quarter of 2017 from 8% in 2016 and 13.3% in 2015.
Retail returns nearly halved since 2015, although they continued to modestly outperform the index. In contrast, Industrial returns dropped only modestly and outperformed the index by a large margin.
The West, led by Los Angeles, produced strong returns, while the other regions lagged behind the national index. Areas of weakness included Washington D.C. and New York in the East and Houston in the South.
Source : Deutsche Asset & Wealth Management