Private Real Estate Market Performance Analysis

This document is a report detailing the recent performance of private real estate, specifically focusing on the NCREIF ODCE Index. It notes that total returns for this index have turned positive for the first time in two years, with gross total returns reported at 0.25% and net returns at 0.3%. The document outlines the lead-lag relationship between private real estate and listed REITs, highlighting that listed REITs have outperformed the NCREIF ODCE index by 52 percentage points over the past eight quarters. The report also discusses the modest increase in total returns in Q3 2024 and provides a preliminary outlook for 2025, suggesting that the NCREIF ODCE index may have bottomed out. However, it cautions against expecting a rapid recovery and notes potential risks that could affect future performance, including interest rate fluctuations and property price adjustments. Overall, the report presents a comprehensive analysis of current trends and future expectations in the private real estate sector.