Monday’s Numbers: December 17, 2012

According to the most recent Trepp survey, spreads were flat and relatively unchanged during the most recent survey period.

December 17, 2012

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According to the most recent Trepp survey, spreads were flat and relatively unchanged during the most recent survey period.

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	12/7/12	Week Earlier	Month Earlier
Office	342	214	210	222	226	220
Retail	326	207	207	212	217	210
Multifamily	318	188	202	197	202	200
Industrial	333	201	205	212	215	209
Average Spread	330	203	205	211	215	210
10-Year Treasury	3.83%	3.29%	1.88%	1.64%	1.63%	1.66%

The Cushman & Wakefield Equity, Debt, and Structured Finance Commercial Mortgage Spread monthly survey of commercial mortgage spreads showed spreads for 10-year, fixed rate mortgages, coming in approximately 10 to 15 basis points across all property sectors over the past 30 days.

Property Type	Mid-Point of Fixed Rate Commercial Mortgage Spreads For 5 Year Commercial Real Estate Mortgages
	12/31/10	7/26/12	9/3/12	9/27/12	11/28/12
Multifamily - Non-Agency	+270	+245	+240	+235	+200
Multifamily – Agency	+280	+225	+225	+210	+190
Regional Mall	+280	+295	+290	+285	+260
Grocery Anchored	+280	+290	+285	+280	+255
Strip and Power Centers		+315	+310	+305	+280
Multi-Tenant Industrial	+270	+300	+295	+290	+260
CBD Office	+280	+295	+285	+280	+240
Suburban Office	+300	+315	+305	+300	+260
Full-Service Hotel	+320	+360	+360	+355	+330
Limited-Service Hotel	+400	+370	+370	+365	+340
5-Year Treasury	2.60%	0.57%	0.68%	0.64%	0.63%
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	7/26/12	9/3/12	9/27/12	11/28/12
Multifamily - Non-Agency	+190	+220	+210	+205	+185
Multifamily – Agency	+200	+210	+210	+195	+175
Regional Mall	+175	+235	+230	+225	+200
Grocery Anchor	+190	+230	+225	+220	+195
Strip and Power Centers		+250	+245	+240	+215
Multi-Tenant Industrial	+190	+255	+250	+245	+215
CBD Office	+180	+245	+235	+230	+190
Suburban Office	+190	+265	+260	+255	+215
Full-Service Hotel	+290	+290	+290	+285	+260
Limited-Service Hotel	+330	+310	+310	+305	+280
10-Year Treasury	3.47%	1.42%	1.64%	1.64%	1.61%
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	7/26/12	9/3/12	9/27/12	11/23/12
Multifamily – Non-Agency	+250-300	+200-260	+200-260	+200-260	+180-250
Multifamily- Agency	+300	+220-265	+220-265	+220-265	+175-230
Regional Mall	+275-300	+210-275	+210-275	+210-275	+210-275
Grocery Anchored	+275-300	+210-275	+210-275	+210-275	+210-275
Strip and Power Centers		+225-300	+225-300	+225-300	+225-300
Multi-Tenant Industrial	+250-350	+230-305	+230-305	+230-305	+230-305
CBD Office	+225-300	+225-300	+225-300	+225-300	+180-250
Suburban Office	+250-350	+250-325	+250-325	+250-325	+250-300
Full-Service Hotel	+300-450	+275-400	+275-400	+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%	0.21%
3-Month LIBOR	0.30%	0.46%	0.43%	0.43%	0.31%
* A dash (-) indicates a range.
Source: Cushman & Wakefield Equity, Debt, and Structured Finance.

Year-to-Date Public Equity Capital Markets

DJIA ⁽¹⁾: +7.51%
S & P 500^(2):+12.40%
NASDAQ⁽³⁾: +14.06%
Russell 2000 ⁽⁴⁾:+11.19%
Morgan Stanley U.S. REIT ⁽⁵⁾:+10.57%

^{(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	12/14/12
3-Month	0.12%	0.01%	0.04%
6-Month	0.18%	0.06%	0.09%
2 Year	0.59%	0.24%	0.24%
5 Year	2.01%	0.83%	0.70%
7 Year			1.15%
10 Year	3.29%	1.88%	1.72%

Key Rates (in Percentages)
	Current	1 Yr. Prior
Federal Funds Rate	0.18	0.07
Federal Reserve Target Rate	0.25	0.25
Prime Rate	3.25	3.25
US Unemployment Rate	7.70	8.70
1-Month Libor	0.21	0.28
3-Month Libor	0.31	0.56

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Stephen Blank

Stephen R. Blank joined ULI in December 1998 as Senior Fellow, Finance. His primary responsibilities include: expanding ULI’s real estate capital markets information and education programs; authoring real estate capital market commentary; participating as a principal researcher and adviser for the Emerging Trends in Real Estate series of publications; organizing and participating in real estate capital markets programs at ULI events worldwide; and participating in industry meetings, seminars, and conferences. Prior to joining ULI, Blank served from December 1993 to November 1998 as Managing Director, Real Estate Investment Banking of Oppenheimer & Co., Inc. His responsibilities included: structuring, underwriting, and executing corporate financings including initial public offerings of common and preferred shares, unsecured debentures, and convertible bonds; property acquisitions, dispositions, and financing; and financial advisory services including mergers and acquisitions, corporate restructurings, and recapitalizations.