**NCREIF Property Index Posts Fourth Consecutive Quarter of Positive Returns**
The NCREIF Property Index (NPI) posted a quarterly return of 1.22% for the third quarter of 2025, according to the National Council of Real Estate Investment Fiduciaries (NCREIF). This figure is virtually unchanged from the 1.23% return in the second quarter. Notably, this marks the fourth consecutive quarter of positive returns, with the trailing four-quarter total return now standing at 4.72%.
The 1.22% total return for Q3 comprised 1.16% in income and a modest 0.06% in property appreciation. NPI property values saw a slight increase during the quarter, continuing a recovery trend with four straight quarters of appreciation following nine quarters of decline.
All major property sectors delivered positive total returns in Q3. Seniors housing led the way for the third consecutive quarter, posting a return of 2.88%. Hotels followed with a 2.12% return, and self-storage recorded a 1.68% gain. The office sector saw a slight improvement, with returns rising from 0.78% in Q2 to 0.90% in Q3. Residential sectors also posted gains, with returns increasing from 1.37% in Q2 to 1.44%. Retail, however, experienced a decline, with returns dropping from 1.94% to 1.31%.
This sustained trend of positive returns reflects cautious optimism in the commercial real estate market, with growth observed across a diverse set of asset classes.
