Headlines


“Federal Reserve Senior Loan Officer Opinion Survey”

Highlight of the October 2011 Federal Reserve Senior Loan Office Opinion Survey:

  • Fewer domestic commercial banks eased lending standards
  • One-fourth of foreign bank respondents tightened lending standards
  • A “large” number of banks tightened loan standards for European Union banks
  • Less easing of credit standards in the third quarter of 2011 as compared to past surveys


Monday’s Numbers

The Trepp LLC survey was not conducted this week due to the Thanksgiving weekend holiday.

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

11/11/11

Office

342

214

208

Retail

326

207

205

Multifamily

318

188

189

Industrial

333

201

197

Average Asking Spread

330

203

200

10-Year Treasury

3.83%

3.29%

2.06%

The Cushman & Wakefield Sonnenblick-Goldman Survey for the period ending November 16th  showed spreads for 10-year mortgages basically unchanged, i.e., up five basis points here, down five basis points there.

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

11/16/11

Multifamily – Non-Agency

+270

+245

+230

+250

+265

Multifamily – Agency

+280

+250

+210

+255

+255

Regional Mall

+280

+260

+265

+300

+295

Grocery Anchored

+280

+260

+250

+290

+320

Strip and Power Centers

 

 

+270

+310

+310

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%

0.88%

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

11/16/11

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%

2.01%

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

11/16/11

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%

0.25%

3-Month LIBOR

0.30%

0.28%

0.25%

0.37%

0.47%

* A dash (-) indicates a range.

Source: Cushman & Wakefield Sonnenblick Goldman.

Year-to-Date Public Equity Capital Markets

DJIA (1): -2.99%
S & P 500 (2)-7.87%
NASDAQ (3): -7.97%
Russell 2000 (4):-14.99%
MSCI U.S. REIT (5):+6.05%

 (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

11/25/11

3-Month

0.12%

0.02%

6-Month

0.18%

0.06%

2 Year

0.59%

0.27%

5 Year

2.01%

0.93%

10 Year

3.29%

1.96%