Spreads reported by Trepp LLC widened during the survey period, fully giving up recent gains. Mortgage pricing remains very attractive for borrowers.

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

12/31/11

3/30

Month Earlier

Office

342

214

210

199

182

Retail

326

207

207

187

175

Multifamily

318

188

198

177

158

Industrial

333

201

205

181

171

Average Spread

330

203

205

183

171

10-Year Treasury

3.83%

3.29%

1.88%

2.20%

1.95%

Over the past month, the Cushman & Wakefield Sonnenblick-Goldman Survey 10-year rates improved as much as 40 basis points for some property sectors.

Property Type

Mid-Point of Fixed Rate Commercial Mortgage
Spreads For 5 Year Commercial Real Estate Mortgages

12/31/10

1/5/12

1/26/12

2/28/12

3/28/12

Multifamily – Non-Agency

+270

+245

+240

+240

+230

Multifamily – Agency

+280

+255

+245

+210

+195

Regional Mall

+280

+300

+300

+300

+275

Grocery Anchored

+280

+295

+295

+290

+270

Strip and Power Centers

 

+320

+320

+315

+295

Multi-Tenant Industrial

+270

+305

+310

+310

+285

CBD Office

+280

+310

+310

+295

+270

Suburban Office

+300

+320

+320

+310

+290

Full-Service Hotel

+320

+350

+350

+350

+325

Limited-Service Hotel

+400

+360

+360

+360

+335

5-Year Treasury

2.60%

0.89%

0.78%

0.83%

1.03%

Source: Cushman & Wakefield Sonnenblick Goldman.

Property Type

Mid-Point of Fixed Rate Commercial Mortgage
Spreads For 10 Year Commercial Real Estate Mortgages

12/31/10

1/5/12

1/26/12

2/28/12

3/28/12

Multifamily – Non-Agency

+190

+205

+210

+210

+200

Multifamily – Agency

+200

+200

+205

+180

+165

Regional Mall

+175

+245

+245

+235

+275

Grocery Anchor

+190

+240

+240

+230

+270

Strip and Power Centers

 

+255

+255

+250

+290

Multi-Tenant Industrial

+190

+245

+255

+250

+280

CBD Office

+180

+250

+240

+320

+270

Suburban Office

+190

+265

+260

+250

+290

Full-Service Hotel

+290

+300

+290

+290

+325

Limited-Service Hotel

+330

+310

+315

+315

+345

10-Year Treasury

3.47%

2.00%

1.97%

1.90%

2.21%

Source: Cushman & Wakefield Sonnenblick Goldman.

Property Type

Mid-Point of Floating-Rate Commercial Mortgage
Spreads For 3 – 5 Commercial Real Estate Year Mortgages

12/31/10

1/5/12

1/26/12

2/28/12

3/28/12

Multifamily – Non-Agency

+250-300

+200-250

+200-250

+200-250

+200-250

Multifamily- Agency

+300

+220-265

+220-265

+220-265

+220-265

Regional Mall

+275-300

+250-350

+210-265

+200-265

+200-265

Grocery Anchored

+275-300

+240-325

+200-275

+200-275

+200-275

Strip and Power Centers

 

+250-350

+225-300

+225-300

+225-300

Multi-Tenant Industrial

+250-350

+270-350

+225-305

+225-305

+225-305

CBD Office

+225-300

+275-350

+225-300

+225-300

+225-300

Suburban Office

+250-350

+300-350

+250-325

+250-325

+250-325

Full-Service Hotel

+300-450

+375-475

+350-425

+275-400

+275-400

Limited-Service Hotel

+450-600

+375-550

+400-500

+350-550

+325-450

1-Month LIBOR

0.26%

0.30%

0.27%

0.24%

0.24%

3-Month LIBOR

0.30%

0.58%

0.55%

0.49%

0.47%

* A dash (-) indicates a range.

Source: Cushman & Wakefield Sonnenblick Goldman.

Year-to-Date Public Equity Capital Markets

DJIA (1): +6.90%
S & P 500 (2): +11.17%
NASDAQ (3): +18.25%
Russell 2000 (4):+10.44%
Morgan Stanley U.S. REIT (5):+8.39%
_____
 (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

12/31/11

4/7/12

3-Month

0.12%

0.01%

.07%

6-Month

0.18%

0.06%

.13%

2 Year

0.59%

0.24%

.31%

5 Year

2.01%

0.83%

0.90%

7 Year

 

 

1.43%

10 Year

3.29%

1.88%

2.05%

                                                  

Key Rates (in Percentages)

 

Current

1 Mo. Prior

3 Mo. Prior

6 Mo. Prior

1 Yr. Prior

Fed Funds Rate

0.11

0.12

0.07

0.08

0.10

Federal Reserve Target Rate

0.25

0.25

0.25

0.25

0.25

Prime Rate

3.25

3.25

3.25

3.25

3.25

US Unemployment Rate

8.20

8.30

8.50

9.00

8.90

1-Month Libor

0.24

0.24

0.30

0.24

0.24

3-Month Libor

0.47

0.47

0.58

0.38

0.29