According to the most recent Trepp survey, spreads were flat and relatively unchanged during the most recent survey period.
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) |
|
12/31/09 |
12/31/10 |
12/31/11 |
12/7/12 |
Week Earlier |
Month Earlier |
Office |
342 |
214 |
210 |
222 |
226 |
220 |
Retail |
326 |
207 |
207 |
212 |
217 |
210 |
Multifamily |
318 |
188 |
202 |
197 |
202 |
200 |
Industrial |
333 |
201 |
205 |
212 |
215 |
209 |
Average Spread |
330 |
203 |
205 |
211 |
215 |
210 |
10-Year Treasury |
3.83% |
3.29% |
1.88% |
1.64% |
1.63% |
1.66% |
The Cushman & Wakefield Equity, Debt, and Structured Finance Commercial Mortgage Spread monthly survey of commercial mortgage spreads showed spreads for 10-year, fixed rate mortgages, coming in approximately 10 to 15 basis points across all property sectors over the past 30 days.
Property Type |
Mid-Point of Fixed Rate Commercial Mortgage
Spreads For 5 Year Commercial Real Estate Mortgages |
|
12/31/10 |
7/26/12 |
9/3/12 |
9/27/12 |
11/28/12 |
Multifamily - Non-Agency |
+270 |
+245 |
+240 |
+235 |
+200 |
Multifamily – Agency |
+280 |
+225 |
+225 |
+210 |
+190 |
Regional Mall |
+280 |
+295 |
+290 |
+285 |
+260 |
Grocery Anchored |
+280 |
+290 |
+285 |
+280 |
+255 |
Strip and Power Centers |
|
+315 |
+310 |
+305 |
+280 |
Multi-Tenant Industrial |
+270 |
+300 |
+295 |
+290 |
+260 |
CBD Office |
+280 |
+295 |
+285 |
+280 |
+240 |
Suburban Office |
+300 |
+315 |
+305 |
+300 |
+260 |
Full-Service Hotel |
+320 |
+360 |
+360 |
+355 |
+330 |
Limited-Service Hotel |
+400 |
+370 |
+370 |
+365 |
+340 |
5-Year Treasury |
2.60% |
0.57% |
0.68% |
0.64% |
0.63% |
Source: Cushman & Wakefield Equity, Debt, and Structured Finance. |
Property Type |
Mid-Point of Fixed Rate Commercial Mortgage
Spreads For 10 Year Commercial Real Estate Mortgages |
|
12/31/10 |
7/26/12 |
9/3/12 |
9/27/12 |
11/28/12 |
Multifamily - Non-Agency |
+190 |
+220 |
+210 |
+205 |
+185 |
Multifamily – Agency |
+200 |
+210 |
+210 |
+195 |
+175 |
Regional Mall |
+175 |
+235 |
+230 |
+225 |
+200 |
Grocery Anchor |
+190 |
+230 |
+225 |
+220 |
+195 |
Strip and Power Centers |
|
+250 |
+245 |
+240 |
+215 |
Multi-Tenant Industrial |
+190 |
+255 |
+250 |
+245 |
+215 |
CBD Office |
+180 |
+245 |
+235 |
+230 |
+190 |
Suburban Office |
+190 |
+265 |
+260 |
+255 |
+215 |
Full-Service Hotel |
+290 |
+290 |
+290 |
+285 |
+260 |
Limited-Service Hotel |
+330 |
+310 |
+310 |
+305 |
+280 |
10-Year Treasury |
3.47% |
1.42% |
1.64% |
1.64% |
1.61% |
Source: Cushman & Wakefield Equity, Debt, and Structured Finance. |
Property Type |
Mid-Point of Floating-Rate Commercial Mortgage
Spreads For 3 - 5 Commercial Real Estate Year Mortgages |
|
12/31/10 |
7/26/12 |
9/3/12 |
9/27/12 |
11/23/12 |
Multifamily – Non-Agency |
+250-300 |
+200-260 |
+200-260 |
+200-260 |
+180-250 |
Multifamily- Agency |
+300 |
+220-265 |
+220-265 |
+220-265 |
+175-230 |
Regional Mall |
+275-300 |
+210-275 |
+210-275 |
+210-275 |
+210-275 |
Grocery Anchored |
+275-300 |
+210-275 |
+210-275 |
+210-275 |
+210-275 |
Strip and Power Centers |
|
+225-300 |
+225-300 |
+225-300 |
+225-300 |
Multi-Tenant Industrial |
+250-350 |
+230-305 |
+230-305 |
+230-305 |
+230-305 |
CBD Office |
+225-300 |
+225-300 |
+225-300 |
+225-300 |
+180-250 |
Suburban Office |
+250-350 |
+250-325 |
+250-325 |
+250-325 |
+250-300 |
Full-Service Hotel |
+300-450 |
+275-400 |
+275-400 |
+275-400 |
+275-400 |
Limited-Service Hotel |
+450-600 |
+325-450 |
+325-450 |
+325-450 |
+325-450 |
1-Month LIBOR |
0.26% |
0.24% |
0.24% |
0.24% |
0.21% |
3-Month LIBOR |
0.30% |
0.46% |
0.43% |
0.43% |
0.31% |
* A dash (-) indicates a range. |
Source: Cushman & Wakefield Equity, Debt, and Structured Finance. |
Year-to-Date Public Equity Capital Markets
DJIA (1): +7.51%
S & P 500 (2): +12.40%
NASDAQ (3): +14.06%
Russell 2000 (4):+11.19%
Morgan Stanley U.S. REIT (5):+10.57%
(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 |
|
12/31/10 |
12/31/11 |
12/14/12 |
3-Month |
0.12% |
0.01% |
0.04% |
6-Month |
0.18% |
0.06% |
0.09% |
2 Year |
0.59% |
0.24% |
0.24% |
5 Year |
2.01% |
0.83% |
0.70% |
7 Year |
|
|
1.15% |
10 Year |
3.29% |
1.88% |
1.72% |
Key Rates (in Percentages) |
|
Current |
1 Yr. Prior |
Federal Funds Rate |
0.18 |
0.07 |
Federal Reserve Target Rate |
0.25 |
0.25 |
Prime Rate |
3.25 |
3.25 |
US Unemployment Rate |
7.70 |
8.70 |
1-Month Libor |
0.21 |
0.28 |
3-Month Libor |
0.31 |
0.56 |