During the past month, spreads reported by Trepp LLC remained “range-bound” at an average spread of 207 basis points over 10-year Treasuries.

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

2/24/12

Month Earlier

Office

342

214

210

214

222

Retail

326

207

207

209

215

Multifamily

318

188

198

200

209

Industrial

333

201

205

205

212

 

 

 

 

 

Average Spread

330

203

205

207

215

 

 

 

 

 

10-Year Treasury

3.83%

3.29%

1.88%

1.98%

2.02%

The Cushman & Wakefield Sonnenblick-Goldman Survey shows rates coming in slightly with lenders seemingly ready to lend at attractive spreads if the right deal comes their way.

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

 

Multifamily – Non-Agency

+270

+245

+240

+240

 

Multifamily – Agency

+280

+255

+245

+210

 

Regional Mall

+280

+300

+300

+300

 

Grocery Anchored

+280

+295

+295

+290

 

Strip and Power Centers

 

+320

+320

+315

 

Multi-Tenant Industrial

+270

+305

+310

+310

 

CBD Office

+280

+310

+310

+295

 

Suburban Office

+300

+320

+320

+310

 

Full-Service Hotel

+320

+350

+350

+350

 

Limited-Service Hotel

+400

+360

+360

+360

 

5-Year Treasury

2.60%

0.89%

0.78%

0.83%

 

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

 

Multifamily – Non-Agency

+190

+205

+210

+210

 

Multifamily – Agency

+200

+200

+205

+180

 

Regional Mall

+175

+245

+245

+235

 

Grocery Anchor

+190

+240

+240

+230

 

Strip and Power Centers

 

+255

+255

+250

 

Multi-Tenant Industrial

+190

+245

+255

+250

 

CBD Office

+180

+250

+240

+320

 

Suburban Office

+190

+265

+260

+250

 

Full-Service Hotel

+290

+300

+290

+290

 

Limited-Service Hotel

+330

+310

+315

+315

 

10-Year Treasury

3.47%

2.00%

1.97%

1.90%

 

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

 

Multifamily – Non-Agency

+250-300

+200-250

+200-250

+200-250

 

Multifamily- Agency

+300

+220-265

+220-265

+220-265

 

Regional Mall

+275-300

+250-350

+210-265

+200-265

 

Grocery Anchored

+275-300

+240-325

+200-275

+200-275

 

Strip and Power Centers

 

+250-350

+225-300

+225-300

 

Multi-Tenant Industrial

+250-350

+270-350

+225-305

+225-305

 

CBD Office

+225-300

+275-350

+225-300

+225-300

 

Suburban Office

+250-350

+300-350

+250-325

+250-325

 

Full-Service Hotel

+300-450

+375-475

+350-425

+275-400

 

Limited-Service Hotel

+450-600

+375-550

+400-500

+350-550

 

1-Month LIBOR

0.26%

0.30%

0.27%

0.24%

 

3-Month LIBOR

0.30%

0.58%

0.55%

0.49%

 

* A dash (-) indicates a range.

Source: Cushman & Wakefield Sonnenblick Goldman.

Year-to-Date Public Equity Capital Markets:
DJIA (1): +6.22%
S & P 500 (2): +8.91%
NASDAQ (3): +14.21%
Russell 2000 (4):+8.31%
Morgan Stanley U.S. REIT (5):+5.32%
_____
 (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

3/3/12

3-Month

0.12%

0.01%

.06%

6-Month

0.18%

0.06%

.11%

2 Year

0.59%

0.24%

.27%

5 Year

2.01%

0.83%

.84%

10 Year

3.29%

1.88%

1.97%

 

Key Rates (in Percentages)

 

Current

1 Mo. Prior

3 Mo. Prior

6 Mo. Prior

1 Yr. Prior

Fed Funds Rate

0.12

0.10

0.07

0.12

0.16

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

8.30

8.50

8.90

9.10

9.10

1-Month Libor

0.24

0.26

0.27

0.22

0.26

3-Month Libor

0.48

0.53

0.53

0.33

0.31