NCREIF Property Index returns 2007-2023

In 2023, the value of the national NCREIF Property Index in the United States declined for the first time since 2009. The annualized total return of the index fell to negative 7.9 percent 2023. The NCREIF Property Index reflects the change in prices of commercial real estate for investment purposes in the United States. Just two years ago, in 2021, the rate of return of the index hit 17.7 percent.

Property types with the highest cap rates

Cap rates, which measure the expected return rate of a real estate asset, were the highest for retail properties in 2023. While a higher cap rate indicates a higher rate of return, it is also associated with higher risk: The multifamily sector, which has enjoyed steady and robust growth in recent years, had the lowest cap rate of all commercial property types.

Commercial property area with the best development prospects

In 2023, the investment opportunities for industrial or distribution real estate were deemed to be the best when compared with other types of commercial property. Industrial real estate includes warehouses, factories, and big box distribution centers.

Returns of the national NCREIF Property Index in the United States from 2007-2023

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Release date

February 2024

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Region

United States

Survey time period

1998 to 2023

Supplementary notes

NCREIF Property Index measures the composite total rate of return of a large pool of individual commercial real estate properties acquired in the private market for investment purposes. Properties have been acquired, at least in part, on behalf of tax-exempt institutional investors, such as pension funds. As such, all properties are held in a fiduciary environment.

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