According to the most recent Trepp survey, spreads were flat and relatively unchanged during the most recent survey period.

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

12/7/12

Week Earlier

Month Earlier

Office

342

214

210

222

226

220

Retail

326

207

207

212

217

210

Multifamily

318

188

202

197

202

200

Industrial

333

201

205

212

215

209

Average Spread

330

203

205

211

215

210

10-Year Treasury

3.83%

3.29%

1.88%

1.64%

1.63%

1.66%

The Cushman & Wakefield Equity, Debt, and Structured Finance Commercial Mortgage Spread monthly survey of commercial mortgage spreads showed spreads for 10-year, fixed rate mortgages, coming in approximately 10 to 15 basis points across all property sectors over the past 30 days.

Property Type

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

12/31/10

7/26/12

9/3/12

9/27/12

11/28/12

Multifamily – Non-Agency

+270

+245

+240

+235

+200

Multifamily – Agency

+280

+225

+225

+210

+190

Regional Mall

+280

+295

+290

+285

+260

Grocery Anchored

+280

+290

+285

+280

+255

Strip and Power Centers

 

+315

+310

+305

+280

Multi-Tenant Industrial

+270

+300

+295

+290

+260

CBD Office

+280

+295

+285

+280

+240

Suburban Office

+300

+315

+305

+300

+260

Full-Service Hotel

+320

+360

+360

+355

+330

Limited-Service Hotel

+400

+370

+370

+365

+340

5-Year Treasury

2.60%

0.57%

0.68%

0.64%

0.63%

Source: Cushman & Wakefield Equity, Debt, and Structured Finance.

Property Type

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

12/31/10

7/26/12

9/3/12

9/27/12

11/28/12

Multifamily – Non-Agency

+190

+220

+210

+205

+185

Multifamily – Agency

+200

+210

+210

+195

+175

Regional Mall

+175

+235

+230

+225

+200

Grocery Anchor

+190

+230

+225

+220

+195

Strip and Power Centers

 

+250

+245

+240

+215

Multi-Tenant Industrial

+190

+255

+250

+245

+215

CBD Office

+180

+245

+235

+230

+190

Suburban Office

+190

+265

+260

+255

+215

Full-Service Hotel

+290

+290

+290

+285

+260

Limited-Service Hotel

+330

+310

+310

+305

+280

10-Year Treasury

3.47%

1.42%

1.64%

1.64%

1.61%

Source: Cushman & Wakefield Equity, Debt, and Structured Finance.

Property Type

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

12/31/10

7/26/12

9/3/12

9/27/12

11/23/12

Multifamily – Non-Agency

+250-300

+200-260

+200-260

+200-260

+180-250

Multifamily- Agency

+300

+220-265

+220-265

+220-265

+175-230

Regional Mall

+275-300

+210-275

+210-275

+210-275

+210-275

Grocery Anchored

+275-300

+210-275

+210-275

+210-275

+210-275

Strip and Power Centers

 

+225-300

+225-300

+225-300

+225-300

Multi-Tenant Industrial

+250-350

+230-305

+230-305

+230-305

+230-305

CBD Office

+225-300

+225-300

+225-300

+225-300

+180-250

Suburban Office

+250-350

+250-325

+250-325

+250-325

+250-300

Full-Service Hotel

+300-450

+275-400

+275-400

+275-400

+275-400

Limited-Service Hotel

+450-600

+325-450

+325-450

+325-450

+325-450

1-Month LIBOR

0.26%

0.24%

0.24%

0.24%

0.21%

3-Month LIBOR

0.30%

0.46%

0.43%

0.43%

0.31%

* A dash (-) indicates a range.

Source: Cushman & Wakefield Equity, Debt, and Structured Finance.

Year-to-Date Public Equity Capital Markets

DJIA (1): +7.51%
S & P 500 (2): +12.40%
NASDAQ (3): +14.06%
Russell 2000 (4):+11.19%
Morgan Stanley U.S. REIT (5):+10.57%

 (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

12/14/12

3-Month

0.12%

0.01%

0.04%

6-Month

0.18%

0.06%

0.09%

2 Year

0.59%

0.24%

0.24%

5 Year

2.01%

0.83%

0.70%

7 Year

 

 

1.15%

10 Year

3.29%

1.88%

1.72%

                                            

Key Rates (in Percentages)

 

Current

1 Yr. Prior

Federal Funds Rate

0.18

0.07

Federal Reserve Target Rate

0.25

0.25

Prime Rate

3.25

3.25

US Unemployment Rate

7.70

8.70

1-Month Libor

0.21

0.28

3-Month Libor

0.31

0.56