Monday, October 4, 2010’s, Numbers
The Commercial Mortgage Alert Trepp weekly survey (below) of 15 active portfolio lenders was unchanged between September 17th and September 24th. During the period, 10-year Treasury bond yields declined 9 basis points, with average all-in cost equal to equal to 4.80 percent.
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 | 8/13 | 9/3 | 9/10 | 9/17 | 9/24 | |
Office | 342 | 244 | 241 | 236 | 248 | 246 |
Retail | 326 | 234 | 229 | 221 | 231 | 231 |
Multifamily | 318 | 215 | 209 | 208 | 207 | 212 |
Industrial | 333 | 231 | 225 | 220 | 230 | 230 |
Average Asking Spread | 330 | 231 | 226 | 221 | 229 | 229 |
10-Year Treasury | 3.83% | 2.61% | 2.70% | 2.74% | 2.60% | 2.51% |
Source: Commercial Mortgage Alert; Trepp. |
Spreads in the September 16 Cushman & Wakefield Sonnenblick-Goldman fixed and floating mortgage rate survey (below) remained basically unchanged from the prior survey period, most probably reflecting the end of summer final vacation period. Conservatively underwritten commercial real estate loans continue to be priced at sub-five percent levels.
Property Type | Mid-Point of Fixed Rate Commercial Mortgage Spreads For 5 Year Commercial Real Estate Mortgages | ||||
1/6/10 | 7/28/10 | 8/12/10 | 8/31/10 | 9/16/10 | |
Multifamily - Non-Agency | +360 | +310 | +300 | +300 | +280 |
Multifamily – Agency | +220 | +240 | +240 | +240 | +240 |
Regional Mall | +450 | +330 | +300 | +290 | +290 |
Strip/Power Center | +460 | +350 | +325 | +300 | +300 |
Multi-Tenant Industrial | +435 | +320 | +300 | +280 | +280 |
CBD Office | +435 | +330 | +310 | +270 | +270 |
Suburban Office | +465 | +340 | +325 | 300 | +300 |
Full-Service Hotel | +500 | +430 | +400 | +400 | +400 |
Limited-Service Hotel | +500 | +450 | +450 | +450 | +450 |
5-Year Treasury | 2.60% | 1.71% | 1.58% | 1.41% | 1.51% |
Source: Cushman & Wakefield Sonnenblick Goldman. |
Property Type | Mid-Point of Fixed Rate Commercial Mortgage Spreads For 10 Year Commercial Real Estate Mortgages | ||||
1/6/10 | 7/28/10 | 8/12/10 | 8/31/10 | 9/16/10 | |
Multifamily - Non-Agency | +300 | +190 | +180 | +180 | +180 |
Multifamily – Agency | +220 | +190 | +190 | +190 | +190 |
Regional Mall | +350 | +220 | +200 | +200 | +200 |
Strip/Power Center | +350 | +230 | +220 | +210 | +200 |
Multi-Tenant Industrial | +420 | +235 | +230 | +205 | +200 |
CBD Office | +330 | +235 | +210 | +225 | +190 |
Suburban Office | +355 | +240 | +225 | +225 | +220 |
Full-Service Hotel | +550 | +350 | +350 | +350 | +350 |
Limited-Service Hotel | +575 | +380 | 380 | +380 | +380 |
10-Year Treasury | 3.85% | 2.97% | 2.71% | 2.61% | 2.76% |
Source: Cushman & Wakefield Sonnenblick Goldman. |
Property Type | Mid-Point of Floating-Rate Commercial Mortgage Spreads For 3 - 5 Commercial Real Estate Year Mortgages | ||||
1/6/10 | 7/28/10 | 8/12/10 | 8/31/10 | 9/16/10 | |
Multifamily – Non-Agency | +300 – 400 | +275-300 | +275-300 | +275-300 | +275-325 |
Multifamily- Agency | NA | NA | NA | NA | NA |
Regional Mall | +475 – 600 | +300-350 | +300-350 | +275-350 | +275-350 |
Strip/Power Center | +450 – 650 | +300-350 | +300-350 | +275-350 | +275-350 |
Multi-Tenant Industrial | +400 – 500 | +275-350 | +275-350 | +250-350 | +250-350 |
CBD Office | +425 | +275-350 | +275-350 | +225-300 | +225-300 |
Suburban Office | +425 | +300-350 | +300-350 | +250-350 | +250-350 |
Full-Service Hotel | +600 | +400-550 | +400-550 | +375-550 | +375-500 |
Limited-Service Hotel | +750 | +450-600 | +450-600 | +450-600 | +450-550 |
1-Month LIBOR | 0.23% | 0.32% | 0.40% | 0.26% | 0.26% |
3-Month LIBOR | 0.25% | 0.48% | 0.62% | 0.31% | 0.31% |
* A dash (-) indicates a range. | |||||
Source: Cushman & Wakefield Sonnenblick Goldman. |
Year-to-Date Public Equity Capital Markets
DJIA (1): +3.85%
S & P 500 (2):+2.79%
NASDAQ (3): +4.48%
Russell 2000 (4): +7.13%
MSCI U.S. REIT (5):+16.85%
(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 | ||||
1/6/10 | 4/9/10 | 9/24/10 | 9/30/10 | |
3-Month | .016% | 0.15% | 0.14% | 0.15% |
6-Month | 0.25% | 0.23% | 0.19% | 0.19% |
2 Year | 0.99% | 1.06% | 0.44% | 0.41% |
5 Year | 2.60% | 2.62% | 1.35% | 1.26% |
10 Year | 3.85% | 3.88% | 2.60% | 2.651% |
Source: Bloomberg LLP. |