Newsworthy News
Signs of the Times? For as many who say that the capital markets crises is easing or ending or whatever, there is daily evidence that things are not quite that rosy as shoe after shoe continues to drop. A number of this week’s shoes included the following:
'BIG-TICKET' PROPERTY LENDERS CONTINUE WITHDRAWAL FROM MARKET
The true extent of banking troubles in UK commercial property was demonstrated when a leading figure estimated that at least three-quarters of loans were “in breach” of a covenant, while £50bn (€57.6bn) of property was deemed to be in “negative equity."
Monday’s Numbers
Year-to-Date Equity Market Performance (as of June 7, 2009):
DJIA(1): -0.15%
S & P 500(2): +4.08%
NASDAQ(3): +17.27%
Russell 2000(4): +6.19%
MSCI U.S. REIT(5): -8.46%
(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: (as of June 7, 2009)
3-month: 0.18%
6-month: 0.37%
2-Year: 1.29%
5-Year: 2.83%
10-Year: 3.83%
Indicated Spreads for Conventional Fixed and Floating Commercial Mortgages (as of May 13, 2009)
Beginning with this week’s update, we will include rates for floating-rate, 3 to 5 year mortgages.
| Property Type | Mid-Point of Commercial Mortgage Rate Spreads for 5-10 Year Fixed-Rate Mortgages | ||||
| 3/12/09 | 4/2/09 | 4/30/09 | 5/13/09 | 5/27/09 | |
| Multifamily: Non-Agency | +388 | +350 | +350 | +293 | +280 |
| Multifamily: Agency | +225 | +265 | |||
| Regional Malls | +513 | +513 | +513 | +525 | +518 |
| Strip/Power Centers | +575 | +575 | +575 | +530 | +463 |
| Multi-Tenant Industrial | +625 | +500 | +475 | +470 | +460 |
| CBD Office | +500 | +500 | +513 | +465 | +455 |
| Suburban Office | +500 | +525 | +525 | +500 | +460 |
| Full-Service Hotel | +600 | +600 | +600 | +588 | +563 |
| Limited-Service Hotel | +650 | +600 | +600 | +600 | +588 |
| 5-Treasury | 1.87% | 1.76% | 1.89% | 2.09% | 2.13% |
| 10-Year Treasury | 2.90% | 2.69% | 3.10% | 3.10% | 3.56% |
| Source: Cushman & Wakefield Sonnenblick-Goldman, LLC. | |||||
| Property Type | Mid-Point of Floating Rate Commercial Mortgage Rate Spreads for 3-5 Year Fixed-Rate Mortgages | ||||
| 4/2/09 | 4/30/09 | 5/13/09 | 5/27/09 | ||
| Multifamily: Non-Agency | -- | +475 | +475 | +475 | +475 |
| Multifamily: Agency | -- | +475 | NA | NA | NA |
| Regional Malls | -- | +550 | +550 | +550 | +550 |
| Strip/Power Centers | -- | +575 | +575 | +575 | +525 |
| Multi-Tenant Industrial | -- | +500 | +500 | +475 | +475 |
| CBD Office | -- | +550 | +525 | +500 | +500 |
| Suburban Office | -- | +600 | +600 | +600 | +600 |
| Full-Service Hotel | -- | +650 | +675 | +650 | +650 |
| Limited-Service Hotel | -- | +710 | +725 | +725 | +725 |
| 1-Month LIBOR | -- | 0.50% | 0.43% | 0.40% | 0.31% |
| 3-Month LIBOR | -- | 1.19% | 1.04% | 0.99% | 0.75% |
| Source: Cushman & Wakefield Sonnenblick-Goldman, LLC. | |||||
