Noteworthy 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:
Russia considers bail-out for banks. Moscow is considering a banking bail-out that will go further than measures taken by the US, as fears grow that bad loans could paralyze the economy.
Monday’s Numbers
Year-to-Date Equity Market Performance (as of June 28, 2009):
DJIA(1): -3.85%
S & P 500(2): +1.73%
NASDAQ(3): +16.56%
Russell 2000(4): +2.76%
MSCI U.S. REIT(5): -16.64%
(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 28, 2009)
3-month: 0.17%
6-month: 0.29%
2-Year: 1.11%
5-Year: 2.56%
10-Year: 3.54%
Indicated Spreads for Conventional Fixed and Floating Commercial Mortgages (as of June 10, 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 | ||||
| 4/2/09 | 4/30/09 | 5/13/09 | 5/27/09 | 6/10/09 | |
| Multifamily: Non-Agency | +350 | +350 | +293 | +280 | +280 |
| Multifamily: Agency | -- | -- | +225 | +265 | +265 |
| Regional Malls | +513 | +513 | +525 | +518 | +518 |
| Strip/Power Centers | +575 | +575 | +530 | +463 | +463 |
| Multi-Tenant Industrial | +500 | +475 | +470 | +460 | +460 |
| CBD Office | +500 | +513 | +465 | +455 | +455 |
| Suburban Office | +525 | +525 | +500 | +460 | +460 |
| Full-Service Hotel | +600 | +600 | +588 | +563 | +563 |
| Limited-Service Hotel | +600 | +600 | +600 | +588 | +588 |
| 5-Treasury | 1.76% | 1.89% | 2.09% | 2.13% | 2.58% |
| 10-Year Treasury | 2.69% | 3.10% | 3.10% | 3.56% | 3.98% |
| 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 | 5/30/09 | 6/10/09 | |
| Multifamily: Non-Agency | +475 | +475 | +475 | +475 | +475 |
| Multifamily: Agency | NA | NA | NA | NA | NA |
| Regional Malls | +550 | +550 | +550 | +550 | +550 |
| Strip/Power Centers | +575 | +575 | +575 | +525 | +525 |
| Multi-Tenant Industrial | +500 | +500 | +475 | +475 | +475 |
| CBD Office | +550 | +525 | +500 | +500 | +500 |
| Suburban Office | +600 | +600 | +600 | +600 | +600 |
| Full-Service Hotel | +650 | +675 | +650 | +650 | +650 |
| Limited-Service Hotel | +710 | +725 | +725 | +725 | +725 |
| 1-Month LIBOR | 0.50% | 0.43% | 0.40% | 0.31% | 0.32% |
| 3-Month LIBOR | 1.19% | 1.04% | 0.99% | 0.75% | 0.65% |
| Source: Cushman & Wakefield Sonnenblick-Goldman, LLC. | |||||
