CHICAGO-The National Council of Real Estate Investment Fiduciaries, an association that tracks almost 6,300 properties across 195 markets in the United States, released its first quarter data that showed rate of return dropped 1.2% from Q4 2010. However, the return of 3.4% was the fifth consecutive quarter with a positive return, signaling a broad based recovery.

The group has a significant involvement and interest in institutional investments, and keeps data on the properties, which include all commercial asset classes. Roy Rendino, CEO, tells GlobeSt.com that there’s been continued value appreciation in major markets due to strong investor demand for core real estate, which has driven down cap rates to 6.1%.

“However, we haven’t seen a recovery in fundamentals, operating income or occupancy,” he says. “Until we see stronger job growth and the overall economy take hold, we don’t show too much improvement.”

He says there’s been a few interesting changes seen in the first quarter data. Apartments, which have ruled the investment arena for the past two years, trailed hotel and retail in the first three months of the year.

Continuing its run, however, the East Coast dominated as the best performing region for the fourth consecutive quarter, at just less than 4%. The Midwest had the lowest return for the quarter, at about 2.25%. The city of Boulder led all major metropolitan areas with more than 6% return on investment.

“Investors started out returning strength to the core markets, but with increased demand and better performance, they’re starting to look at properties on a more national basis,” Rendino says. The association will hold a webinar at 4 p.m. Eastern Time, May 4 to discuss the results.