Industrial Total Returns

Source: MSCI

Overall, the MSCI IPD U.S. Quarterly Property Index recorded a total return of 6.9 percent for the year to December 2017. This was slightly down on the 2016 total return of 7.5 percent. The strongest performing sector, and the only sector to post a higher total return in 2017 than 2016, was industrial. Country-wide, industrial total return in 2017 was 12.1 percent and has benefited from strong demand for last mile logistics assets. Industrial performance was especially strong on the west coast with Portland, Los Angeles, San Francisco and Seattle all achieving total returns in excess of 15 percent. The only industrial market of the 22 shown to record a total return lower than 5 percent was Houston where commercial real estate continues to feel the after effects of the end of the last commodities boom.