Wednesday, September 26, 2018

Growth in Total Returns on CRE Investment Will Decelerate Over the Next Two Years, PREA Survey Respondents Predict

Real estate investment managers and advisors expect total returns growth on all commercial property types to slow from a projected 6.6 percent on the NCREIF Property Index (NPI) in 2018 to 4.6 percent by 2020, the third quarter consensus forecast survey from the Pension Real Estate Association (PREA) shows. On an annual basis, investment returns on all property types should deliver an average return of 5.4 percent between 2018 and 2020, respondents to the survey indicated.

Retail assets will also continue to post stable returns on income, according to PREA survey respondents, who expect those returns to move from 4.8 percent in 2018 to 4.9 percent in 2020. . . . more