Headlines

“China’s Minister of Financed Warned…”

The outlook for the global economy is worsening due to the absence of any effective solution to tackle Europe’s debt crises, even as it engulfs the single currency union’s larger countries and banks.

Monday’s Numbers

The Trepp LLC survey showed spreads widening approximately 10 basis points across all property types in direct reaction to the continuing Euro-crises. While everyone wants to believe everything is under control, it appears few actually believe it to be so.

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

11/25/11

Office

342

214

213

Retail

326

207

209

Multifamily

318

188

202

Industrial

333

201

210

Average Asking Spread

330

203

209

10-Year Treasury

3.83%

3.29%

2.06%

The Cushman & Wakefield Sonnenblick-Goldman Survey for the period ending December 1, 2011 showed spreads for 10-year mortgages unchanged.

Property Type

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

12/31/10

3/31/11

6/30/11

9/30/11

12/1/11

Multifamily – Non-Agency

+270

+245

+230

+250

+265

Multifamily – Agency

+280

+250

+210

+255

+255

Regional Mall

+280

+260

+265

+300

+310

Grocery Anchored

+280

+260

+250

+290

+295

Strip and Power Centers

 

 

+270

+310

+320

Multi-Tenant Industrial

+270

+265

+255

+295

+310

CBD Office

+280

+260

+255

+290

+310

Suburban Office

+300

+270

+270

+310

+325

Full-Service Hotel

+320

+300

+275

+335

+350

Limited-Service Hotel

+400

+325

+310

+345

+360

5-Year Treasury

2.60%

2.23%

1.52%

0.99%

0.98%

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

3/31/11

6/30/11

9/30/11

12/1/11

Multifamily – Non-Agency

+190

+180

+185

+240

+240

Multifamily – Agency

+200

+185

+175

+235

+235

Regional Mall

+175

+180

+190

+250

+250

Grocery Anchor

+190

+185

+200

+240

+245

Strip and Power Centers

 

 

+195

+255

+260

Multi-Tenant Industrial

+190

+190

+190

+250

+245

CBD Office

+180

+180

+190

+250

+250

Suburban Office

+190

+190

+195

+255

+265

Full-Service Hotel

+290

+230

+225

+300

+300

Limited-Service Hotel

+330

+260

+245

+325

+305

10-Year Treasury

3.47%

3.45%

2.94%

2.01%

2.13%

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

3/31/11

6/30/11

9/30/11

12/1/11

Multifamily – Non-Agency

+250-300

+225-325

+200-260

+225-250

+200-250

Multifamily- Agency

+300

+250-310

+220-260

+230-265

+220-265

Regional Mall

+275-300

+225-300

+205-270

+225-275

+215-275

Grocery Anchored

+275-300

+225-300

+205-275

+215-275

+210-275

Strip and Power Centers

 

 

+225-300

+225-300

+220-300

Multi-Tenant Industrial

+250-350

+250-350

+230-325

+250-325

+225-325

CBD Office

+225-300

+225-300

+215-300

+240-300

+225-300

Suburban Office

+250-350

+275-350

+250-325

+265-325

+245-325

Full-Service Hotel

+300-450

+350-450

+350-450

+350-450

+350-425

Limited-Service Hotel

+450-600

+400-500

+400-500

+400-500

+400-500

1-Month LIBOR

0.26%

0.22%

0.19%

0.24%

0.27%

3-Month LIBOR

0.30%

0.28%

0.25%

0.37%

0.53%

* A dash (-) indicates a range.

Source: Cushman & Wakefield Sonnenblick Goldman.

Year-to-Date Public Equity Capital Markets

DJIA (1): +3.82%
S & P 500 (2)-1.06%
NASDAQ (3): -0.98%
Russell 2000 (4):-6.22%
Morgan Stanley U.S. REIT (5):-0.41%
_____
 (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

12/3/11

3-Month

0.12%

0.01%

6-Month

0.18%

0.04%

2 Year

0.59%

0.25%

5 Year

2.01%

0.91%

10 Year

3.29%

2.03%