Monday’s Numbers
The Commercial Mortgage Alert Trepp weekly survey (below) of 15 active portfolio lenders remained relatively unchanged during the most recent survey period. All-in costs remain in the 5.00+/- percent range and should be range bound for the foreseeable future, subject to a “Black Swan” event.
Asking Spreads over U.S. Treasury Bonds in Basis Points (10-year Commercial and Multifamily Mortgage Loans with 50% to 59% Loan-to-Value Ratios) |
|
12/31/09 |
12/31/10 |
6/23/11 |
Office |
342 |
214 |
183 |
Retail |
326 |
207 |
175 |
Multifamily |
318 |
188 |
162 |
Industrial |
333 |
201 |
171 |
Average Asking Spread |
330 |
203 |
161 |
10-Year Treasury |
3.83% |
3.29% |
2.87% |
The Cushman & Wakefield Sonnenblick-Goldman Survey for the period ended June 16 showed fixed rate spreads widening maybe 10 basis points and floating rate spreads narrowing maybe 5 basis points. So, financing remains available at attractive and affordable rates.
Property Type |
Mid-Point of Fixed Rate Commercial Mortgage Spreads For 5 Year Commercial Real Estate Mortgages |
|
12/16/10 |
3/31/11 |
5/12/11 |
6/2/11 |
6/16/11 |
Multifamily - Non-Agency |
+270 |
+245 |
+225 |
+225 |
+230 |
Multifamily – Agency |
+280 |
+250 |
+200 |
+200 |
+210 |
Regional Mall |
+280 |
+260 |
+255 |
+255 |
+265 |
Grocery Anchored |
+280 |
+260 |
+245 |
+245 |
+250 |
Strip and Power Centers |
|
|
+265 |
+265 |
+270 |
Multi-Tenant Industrial |
+270 |
+265 |
+245 |
+245 |
+255 |
CBD Office |
+280 |
+260 |
+250 |
+250 |
+255 |
Suburban Office |
+300 |
+270 |
+260 |
+260 |
+270 |
Full-Service Hotel |
+320 |
+300 |
+275 |
+265 |
+275 |
Limited-Service Hotel |
+400 |
+325 |
+320 |
+300 |
+310 |
5-Year Treasury |
2.60% |
2.23% |
1.88% |
1.62% |
1.52% |
Source: Cushman & Wakefield Sonnenblick Goldman. |
Property Type |
Mid-Point of Fixed Rate Commercial Mortgage Spreads For 10 Year Commercial Real Estate Mortgages |
|
12/16/10 |
3/31/11 |
5/12/11 |
6/2/11 |
6/16/11 |
Multifamily - Non-Agency |
+190 |
+180 |
+180 |
+180 |
+185 |
Multifamily – Agency |
+200 |
+185 |
+175 |
+170 |
+175 |
Regional Mall |
+175 |
+180 |
+180 |
+180 |
+190 |
Grocery Anchor |
+190 |
+185 |
+175 |
+175 |
+200 |
Strip and Power Centers |
|
|
+190 |
+190 |
+195 |
Multi-Tenant Industrial |
+190 |
+190 |
+185 |
+185 |
+190 |
CBD Office |
+180 |
+180 |
+180 |
+180 |
+190 |
Suburban Office |
+190 |
+190 |
+190 |
+190 |
+195 |
Full-Service Hotel |
+290 |
+230 |
+220 |
+220 |
+225 |
Limited-Service Hotel |
+330 |
+260 |
+240 |
+240 |
+245 |
10-Year Treasury |
3.47% |
3.45% |
3.22% |
2.99% |
2.94% |
Source: Cushman & Wakefield Sonnenblick Goldman. |
Property Type |
Mid-Point of Floating-Rate Commercial Mortgage Spreads For 3 - 5 Commercial Real Estate Year Mortgages |
|
12/16/10 |
3/31/11 |
5/12/11 |
6/2/11 |
6/16/11 |
Multifamily – Non-Agency |
+250-300 |
+225-325 |
+205-300 |
+200-275 |
+200-260 |
Multifamily- Agency |
+300 |
+250-310 |
+225-310 |
+220-270 |
+220-260 |
Regional Mall |
+275-300 |
+225-300 |
+200-275 |
+205-275 |
+205-270 |
Grocery Anchored |
+275-300 |
+225-300 |
+210-285 |
+215-285 |
+205-275 |
Strip and Power Centers |
|
|
+230-300 |
+235-300 |
+225-300 |
Multi-Tenant Industrial |
+250-350 |
+250-350 |
+235-325 |
+230-325 |
+230-325 |
CBD Office |
+225-300 |
+225-300 |
+225-300 |
+215-300 |
+215-300 |
Suburban Office |
+250-350 |
+275-350 |
+250-350 |
+250-325 |
+250-325 |
Full-Service Hotel |
+300-450 |
+350-450 |
+350-450 |
+350-450 |
+350-450 |
Limited-Service Hotel |
+450-600 |
+400-500 |
+400-500 |
+400-500 |
+400-500 |
1-Month LIBOR |
0.26% |
0.22% |
0.20% |
0.19% |
0.19% |
3-Month LIBOR |
0.30% |
0.28% |
0.26% |
0.25% |
0.25% |
* A dash (-) indicates a range. |
Source: Cushman & Wakefield Sonnenblick Goldman. |
Year-to-Date Public Equity Capital Markets
DJIA (1): +3.08%
S & P 500 (2):+0.86%
NASDAQ (3): -0.00%
Russell 2000 (4):-1.70%
MSCI U.S. REIT (5):+5.78%
_____
(1) Dow Jones Industrial Average. (2) Standard & Poor’s 500 Stock Index. (3) NASD Composite Index. (4) Small Capitalization segment of U.S. equity universe. (5) Morgan Stanley REIT Index.
U.S. Treasury Yields |
|
12/31/10 |
6/24/2011 |
3-Month |
0.12% |
0.01% |
6-Month |
0.18% |
0.07% |
2 Year |
0.59% |
0.39% |
5 Year |
2.01% |
1.45% |
10 Year |
3.29% |
2.90% |