The Trepp survey for the period ending April 4, 2014, showed spreads basically unchanged, with the implied ten-year rate for properties with 50 percent to 59 percent loan-to-value ratios at 4.10 percent.
Real estate investment trusts (REITs) are off to a strong start in 2014, showing returns far in excess of alternative public equity investments. REITs continue to have access to both equity and debt capital in size and at low cost, fueling their ability to selectively acquire property on an accretive basis.
A new survey by the Urban Land Institute and EY forecasts that activity in the commercial sector will soon reach levels not seen since 2006. The housing sector is also expected to continue its rebound, albeit at a somewhat slower pace than previously predicted.