Correlation
S&P 500
100 4500
75 3500
50 2500
25 1500
0
Commercial Property Price Index
150
100
75 125
50 100
75
25
0 50
All Property CPPI® weights: retail (20%), office (17.5%), apartment (15%), health care (15%), industrial (10%), lodging (7.5%), net lease (5%), self-storage (5%), manufactured home park (2.5%), and student housing (2.5%). Retail is mall (50%) and strip retail (50%). Core Sector CPPI® weights: apartment (25%), industrial (25%), office (25%), and retail (25%). You cannot invest in a real estate index, and a metric such as the Green Street CPPI is not a proxy for any particular real estate portfolio. However, as this chart indicates, while the broad stock and real estate markets demonstrate some general correlation during major recessions, the short-term volatility of the stock market is more pronounced that that of institutionally-owned real estate.
Past performance is not indicative of future results. The S&P 500 Index is a widely recognized capitalization-weighted index that measures the performance of the large-capitalization sector of the U.S. stock market. The Commercial Property Price Index (CPPI) is a time series of unleveraged property values across these sectors and markets, and captures the prices at which commercial real estate transactions are currently being negotiated and contracted. *
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