The Trepp, LLC survey showed spreads unchanged during the survey period as the markets continued to languish. Market participants have had plenty to wait for lately: Supreme Court decisions, European Union and European Central Bank actions, Federal Reserve announcements, and a break in the heat wave that has been baking most of the country. Meanwhile, lenders continue to quote loans at rates based upon floor pricing which remains very attractive.

This week should be a slow (and hopefully uneventful) one given the positioning of the July 4th holiday mid-week. Happy holiday to all!

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

6/22

Month Earlier

Office

342

214

210

239

224

Retail

326

207

207

234

218

Multifamily

318

188

198

226

210

Industrial

333

201

205

230

212

Average Spread

330

203

205

232

216

10-Year Treasury

3.83%

3.29%

1.88%

1.69%

1.79%

The Cushman & Wakefield Equity, Debt, and Structured Finance Commercial Mortgage Spread survey showed spreads for 10-year fixed rate mortgages unchanged during the survey period.

Property Type

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

12/31/10

3/28/12

4/27/12

5/30/12

6/28/12

Multifamily – Non-Agency

+270

+230

+240

+250

+245

Multifamily – Agency

+280

+195

+200

+210

+225

Regional Mall

+280

+275

+275

+300

+300

Grocery Anchored

+280

+270

+270

+295

+295

Strip and Power Centers

 

+295

+295

+320

+320

Multi-Tenant Industrial

+270

+310

+285

+305

+305

CBD Office

+280

+295

+270

+295

+300

Suburban Office

+300

+310

+290

+315

+315

Full-Service Hotel

+320

+350

+340

+360

+360

Limited-Service Hotel

+400

+360

+350

+370

+370

5-Year Treasury

2.60%

0.83%

0.83%

0.69%

0.69%

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

3/28/12

4/27/12

5/30/12

6/28/12

Multifamily – Non-Agency

+190

+200

+210

+220

+220

Multifamily – Agency

+200

+165

+170

+190

+200

Regional Mall

+175

+275

+220

+245

+245

Grocery Anchor

+190

+270

+200

+230

+235

Strip and Power Centers

 

+290

+235

+260

+255

Multi-Tenant Industrial

+190

+280

+240

+260

+260

CBD Office

+180

+270

+220

+250

+250

Suburban Office

+190

+290

+245

+270

+265

Full-Service Hotel

+290

+325

+260

+295

+290

Limited-Service Hotel

+330

+345

+290

+320

+310

10-Year Treasury

3.47%

2.21%

1.95%

1.62%

1.58%

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

3/28/12

4/27/12

5/30/12

6/28/12

Multifamily – Non-Agency

+250-300

+200-250

+200-250

+200-250

+200-260

Multifamily- Agency

+300

+220-265

+220-265

+220-265

+220-265

Regional Mall

+275-300

+200-265

+200-265

+210-275

+210-275

Grocery Anchored

+275-300

+200-275

+200-275

+205-275

+210-275

Strip and Power Centers

 

+225-300

+225-300

+225-300

+225-300

Multi-Tenant Industrial

+250-350

+225-305

+225-305

+235-305

+235-305

CBD Office

+225-300

+225-300

+225-300

+225-300

+225-300

Suburban Office

+250-350

+250-325

+250-325

+250-325

+250-325

Full-Service Hotel

+300-450

+275-400

+250-400

+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%

0.24%

3-Month LIBOR

0.30%

0.47%

0.47%

0.47%

0.47%

* A dash (-) indicates a range.

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

Year-to-Date Public Equity Capital Markets

DJIA (1): +5.42%
S & P 500 (2): +8.31%
NASDAQ (3): +12.66%
Russell 2000 (4):+7.79%
Morgan Stanley U.S. REIT (5):+12.90%

 (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

6/22/12

3-Month

0.12%

0.01%

0.08%

6-Month

0.18%

0.06%

0.14%

2 Year

0.59%

0.24%

0.30%

5 Year

2.01%

0.83%

0.75%

7 Year

 

 

1.14%

10 Year

3.29%

1.88%

1.67%

                                     

Key Rates (in Percentages)

 

Current

1 Mo. Prior

3 Mo. Prior

6 Mo. Prior

1 Yr. Prior

Fed Funds Rate

0.18

0.17

0.15

0.07

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

8.10

8.30

8.70

9.00

1-Month Libor

0.25

0.24

0.24

0.29

0.19

3-Month Libor

0.46

0.47

0.47

0.57

0.25