As expected, NCREIF all-property total returns dropped back significantly in Q3, to just 0.6% q/q, as investor demand pared back in response to higher alternative asset yields and the poor outlook for economic growth. Looking ahead, while capital values nudged 0.4% lower on the quarter, driven by office and retail, we expect larger falls in Q4. What’s more, we anticipate capital value declines in all four major sectors in at least the next couple of quarters.
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