Plummeting valuations and higher financing costs have led wholesale office funds to a 19.5 per cent decline in capital growth over the past 12 months, including their worst quarterly performance since the months following the global financial crisis.

ISPT’s 50 Lonsdale Street Property Trust and the Mirvac Wholesale Office Fund were the worst performers. Both suffered a decline in total return of more than 20 per cent over the past 12 months, according to the latest MSCI/Mercer Australia Core Wholesale Property Fund Index.