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:
"Starbucks said it was cutting prices for the first time on some drinks"
"Sales in the United Kingdom of baked beans, generally considered recessionary food, grew at 9.9 percent in June and 8.7 percent in July, compared to 15 percent growth between April and June and 20 percent between November and May.”
Monday’s Numbers
Year-to-Date Equity Market Performance (as of September 12, 2009):
DJIA(1): +9.45%
S & P 500(2): +15.44%
NASDAQ(3): +31.95%
Russell 2000(4): +18.84%
MSCI U.S. REIT(5): +7.85%
(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: (as of September 12, 2009)
3-month: 0.13%
6-month: 0.21%
2-Year: 0.90%
5-Year: 2.30%
10-Year: 3.35%
Indicated Spreads for Conventional Fixed and Floating Commercial Mortgages (as of September 1, 2009)
| Property Type | Mid-Point of Commercial Mortgage Rate Spreads for 5-10 Year Fixed-Rate Mortgages | ||||
| 6/29/09 | 7/14/09 | 7/29/09 | 8/20/09 | 9/1/09 | |
| Multifamily: Non-Agency | +280 | +340 | +350 | +400 | +425 |
| Multifamily: Agency | +265 | +210 | +220 | +220 | +240 |
| Regional Malls | +518 | +500 | +475 | +470 | +458 |
| Strip/Power Centers | +463 | +455 | +450 | +465 | +465 |
| Multi-Tenant Industrial | +460 | +450 | +463 | +475 | +488 |
| CBD Office | +455 | +420 | +420 | +443 | +460 |
| Suburban Office | +460 | +460 | +460 | +478 | +475 |
| Full-Service Hotel | +563 | +525 | +453 | +525 | +563 |
| Limited-Service Hotel | +588 | +588 | +550 | +550 | +575 |
| 5-Treasury | 2.76% | 2.33% | 2.70% | 2.65% | 2.47% |
| 10-Year Treasury | 3.50% | 3.44% | 3.69% | 3.46% | 3.45% |
| Source: Cushman & Wakefield Sonnenblick-Goldman, LLC. | |||||
| Property Type | Mid-Point of Floating Rate Commercial Mortgage Rate Spreads for 3-5 Year Fixed-Rate Mortgages | ||||
| 6/26/09 | 7/14/09 | 7/29/09 | 8/20/09 | 9/01/09 | |
| Multifamily: Non-Agency | +475 | +450 | +413 | +413 | +413 |
| Multifamily: Agency | NA | NA | NA | NA | NA |
| Regional Malls | +550 | +550 | +550 | +500 | +475 |
| Strip/Power Centers | +525 | +538 | +538 | +488 | +488 |
| Multi-Tenant Industrial | +475 | +488 | +488 | +488 | +413 |
| CBD Office | +500 | +513 | +525 | +488 | +375 |
| Suburban Office | +600 | +600 | +600 | +550 | +388 |
| Full-Service Hotel | +650 | +650 | +650 | +650 | +600 |
| Limited-Service Hotel | +725 | +725 | +725 | +725 | +650 |
| 1-Month LIBOR | 0.31% | 0.30% | 0.29% | 0.27% | 0.26% |
| 3-Month LIBOR | 0.61% | 0.54% | 0.49% | 0.43% | 0.38% |
| Source: Cushman & Wakefield Sonnenblick-Goldman, LLC. | |||||
