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 | 5/7 | 5/14 | 5/21 |
5/28 | 6/4 | |
| Office | 342 | 257 | 247 | 237 | 235 | 2333 |
| Retail | 326 | 244 | 244 | 229 | 225 | 225 |
| Multifamily | 318 | 230 | 230 | 217 |
213 | 211 |
| Industrial | 333 | 243 | 243 | 229 | 223 | 223 |
| Average Asking Spread | 330 | 244 | 244 | 228 | 224 | 223 |
| 10-Year Treasury | 3.83% | 3.43% | 3.43% | 3.29% | 3.20% | 3.22% |
| Source: Trepp. | ||||||
Indicated Spreads for Conventional Fixed and Floating-Rate Commercial Mortgages
| Property Type | Mid-Point of Fixed Rate Commercial Mortgage Spreads For 5–10 Year Mortgages* | ||||
| 1/16/10 | 4/16/10 | 4/30/10 | 5/26/10 | 6/9/10 | |
| Multifamily-Non-Agency | +360/300 | +320/200 | +310/180 | +325/200 | +325/200 |
| Multifamily–Agency | +220 | +185/160 | +185/160 | +240/195 | +240/190 |
| Regional Mall | +450/350 | +340/260 | +340/260 | +360/270 | +360/250 |
| Strip/Power Center | +460/350 | +400/290 | +380/270 | +390/260 | +390/260 |
| Multi-Tenant Industrial | +435/420 | +380/280 | +310/250 | +340/245 | +340/245 |
| CBD Office | +435/330 | +340/210 | +330/200 | +360/250 | +360/250 |
| Suburban Office | +465/355 | +400/290 | +350/220 | +370/260 | +370/260 |
| Full-Service Hotel | +500/550 | +450/400 | +450/350 | +450/350 | +450/350 |
| Limited-Service Hotel | +500/575 | +500/440 | +470/400 | +470/400 | +470/400 |
| 5-Year Treasury | 2.60% | 2.60% | 2.56% | 2.06% | 2.09% |
| 10-Year Treasury | 3.85% | 3.88% | 3.73% | 3.23% | 3.29% |
| * A slash (/) indicates the rate for 5 years versus 10 years. | |||||
| Source: Cushman & Wakefield Sonnenblick Goldman. | |||||
| Property Type | Mid-Point of Floating-Rate Commercial Mortgage Spreads For 3-5 Year Mortgages* | ||||
| 1/6/10 | 4/16/10 | 4/30/10 | 5/26/10 | 6/9/10 | |
| Multifamily–Non-Agency | +300-400 | +300-325 | +275-300 | +275-300 | +275-300 |
| Multifamily-Agency | NA |
NA | NA | NA | NA |
| Regional Mall | +475/600 | +325–375 | +300-350 | +300-350 | +300-350 |
| Strip/Power Center | +450/650 | +325–375 | +300-350 | +300-350 | +300-350 |
| Multi-Tenant Industrial | +400/500 | +305-375 | +275-350 | +275-350 | +275-350 |
| CBD Office | +425 | +300–400 | +275-400 | +275-400 | +275-350 |
| Suburban Office | +425 | +325–450 | +325–425 | +325–450 | +325-375 |
| Full-Service Hotel | +600 | +400–550 | +400–550 | +400–550 | +400-550 |
| Limited-Service Hotel | +750 | +500–700 | +450–600 | +450-600 | +450-600 |
| 1-Month LIBOR | 0.23% | 0.25% | 0.27% | 0.35% | 0.35% |
| 3-Month LIBOR | 0.25% | 0.30% | 0.33% | 0.54% | 0.54% |
| * A dash (-) indicates a range. | |||||
| Source: Cushman & Wakefield Sonnenblick Goldman. | |||||
Sign 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. This week’s shoes included the following:
We have decided to suspend our “Sign of the Times” snippets in favor of increased postings on ULI’s Capital Markets Update which can be accessed via:
ULI’s Capital Markets Update is comprised of six modules: The Economy; Newsworthy News; Public/Private Equity Capital Markets; Public/Private Debt Capital Markets; Responsible Property Investment; and Market Rates, Terms, Conditions, and Statistics.
Comments? Suggestions? Please e-mail us at: blank@uli.org.
DJIA (1): -2.08%
S & P 500 (2): -2.11%
NASDAQ (3): -1.13%
Russell 2000 (4): -3.78%
MSCI U.S. REIT (5): +11.00%
(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 13, 2010)
3-month: 0.07%
6-month: 0.15%
2-Year: 0.73%
5-Year: 2.03%
10-Year: 3.23%
