The core US property market has produced its lowest annualised return since 2009, fresh data from the National Council of Real Estate Investment Fiduciaries (NCREIF) shows.
The NCREIF Open-end Diversified Core Equity (ODCE) index, which tracks $174bn (£141bn) of property assets, posted an annualised return of 8.77% for 2016.
The figures suggest that that US property returns have flattened out following several years of strong capital appreciation.
Quarterly capital growth remained firm at just over 2% throughout 2016, down from around 3.5% during the previous year. Quarterly income returns remained stable during 2015 and 2016, at just above 1%.
ODCE funds, of which there are 24, attracted just $884m (£714.5bn) of net inflows in 2016, far below the $5-6.5bn (£4-£5.3bn) annual trend of the previous two years.
Net inflows turned negative in the final quarter of last year, as distributions and redemptions (£3.6bn) outgrew contributions (£3.2bn).