The Trepp LLC survey showed spreads unchanged during the survey period as the market participants held their breath waiting to see how Greece fares following the critical election on June 17. Pricing remains subject to floors from both conventional and securitized lenders with all-in costs said to be 3.5 percent (+/-) for five year funds and 4.0 percent (+/-) for 10-year financing.

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

6/8/12

Month Earlier

Office

342

214

210

233

219

Retail

326

207

207

229

209

Multifamily

318

188

198

222

201

Industrial

333

201

205

226

209

Average Spread

330

203

205

228

210

10-Year Treasury

3.83%

3.29%

1.88%

1.72%

1.95%

The Cushman & Wakefield Sonnenblick-Goldman Commercial Mortgage Spread survey showed spreads for 10-year fixed rate mortgages widening 20 to 25 basis points during the survey period.

Property Type

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

12/31/10

2/28/12

3/28/12

4/27/12

5/30/12

Multifamily – Non-Agency

+270

+240

+230

+240

+250

Multifamily – Agency

+280

+210

+195

+200

+210

Regional Mall

+280

+300

+275

+275

+300

Grocery Anchored

+280

+290

+270

+270

+295

Strip and Power Centers

 

+315

+295

+295

+320

Multi-Tenant Industrial

+270

+310

+310

+285

+305

CBD Office

+280

+310

+295

+270

+295

Suburban Office

+300

+320

+310

+290

+315

Full-Service Hotel

+320

+350

+350

+340

+360

Limited-Service Hotel

+400

+360

+360

+350

+370

5-Year Treasury

2.60%

0.78%

0.83%

0.83%

0.69%

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

2/28/12

3/28/12

4/27/12

5/30/12

Multifamily – Non-Agency

+190

+210

+200

+210

+220

Multifamily – Agency

+200

+180

+165

+170

+190

Regional Mall

+175

+235

+275

+220

+245

Grocery Anchor

+190

+230

+270

+200

+230

Strip and Power Centers

 

+250

+290

+235

+260

Multi-Tenant Industrial

+190

+250

+280

+240

+260

CBD Office

+180

+320

+270

+220

+250

Suburban Office

+190

+250

+290

+245

+270

Full-Service Hotel

+290

+290

+325

+260

+295

Limited-Service Hotel

+330

+315

+345

+290

+320

10-Year Treasury

3.47%

1.90%

2.21%

1.95%

1.62%

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

2/28/12

3/28/12

4/27/12

5/30/12

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

+200-265

+200-265

+200-265

+210-275

Grocery Anchored

+275-300

+200-275

+200-275

+200-275

+205-275

Strip and Power Centers

 

+225-300

+225-300

+225-300

+225-300

Multi-Tenant Industrial

+250-350

+225-305

+225-305

+225-305

+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

+275-400

+250-400

+275-400

Limited-Service Hotel

+450-600

+350-550

+325-450

+325-450

+325-450

1-Month LIBOR

0.26%

0.24%

0.24%

0.24%

0.24%

3-Month LIBOR

0.30%

0.49%

0.47%

0.47%

0.47%

* A dash (-) indicates a range.

Source: Cushman & Wakefield Sonnenblick Goldman.

Year-to-Date Public Equity Capital Markets

DJIA (1): +4.50%
S & P 500 (2): +6.78%
NASDAQ (3): +10.27%
Russell 2000 (4):4.10%
Morgan Stanley U.S. REIT (5):+9.32%

 (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

3/16/12

3-Month

0.12%

0.01%

0.09%

6-Month

0.18%

0.06%

0.15%

2 Year

0.59%

0.24%

0.27%

5 Year

2.01%

0.83%

0.68%

7 Year

 

 

1.04%

10 Year

3.29%

1.88%

1.59%

                                          

Key Rates (in Percentages)

 

Current

1 Mo. Prior

3 Mo. Prior

6 Mo. Prior

1 Yr. Prior

Fed Funds Rate

0.20

0.17

0.15

0.07

0.12

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

0.24

0.24

0.24

0.28

0.19

3-Month Libor

0.47

0.47

0.47

0.56

0.25