The Ground Floor

Surviving and Thriving

This post was written by Trisha Riggs, vice president of communications for ULI.

A big part of weathering real estate cycles is using the downturns wisely--to polish professional skills, develop post-recession strategies for growth, and keep employees motivated, according to four industry icons who offered survival tips at ULI’s 2009 Fall Meeting in San Francisco.

James D. Klingbeil, chairman and chief executive officer of Klingbeil Capital; Gerald D. Hines, chairman and owner of the Hines real estate organization; Joseph Brown, group chief executive of design and planning at AECOM; and Robert B. McLeod, chairman and chief executive officer of Newland Communities--collectively with about 200 years of industry experience--reminded attendees that longevity is about sticking to the basics of sound business practices. Surviving and thriving, they said, is a matter of staying  focused on such fundamentals as providing excellent service to clients, hiring the brightest and best, mentoring employees through tough times, and offering a product that is a cut above the rest.

Among the advice from the panelists:

• Do the best work you can locally, no matter how many places you expand--be the best provider in each market.
• Your integrity and that of your company should be your top priority--never compromise your values.
• Avoid becoming over-leveraged, even during times of easy credit availability.
• Make frequent visits to your projects--meet with your management and keep the communication flowing throughout your organization. Fear of the unknown has a paralyzing impact that stifles productivity.
• Seek ideas and heed creative direction from your best clients.
• Seek public-sector partners--public-private partnerships will be important catalysts for development that will help move the economy from recession to recovery.
• Above all, remember that real estate is a long-term business, and that no bust--or boom--lasts forever.

Monday's Numbers and Noteworthy News

Noteworthy News

Commercial Mortgage Alert mortgage spreads based upon a weekly survey of 15 active portfolio lenders conducted by Trepp, the analytics firm.

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)
	10/9	10/16	10/23	10/30
Office	407	385	381	397
Retail	430	403	398	406
Multifamily	375	339	335	343
Industrial	395	379	377	389
Source: Trepp

Indicated Spreads for Conventional Fixed and Floating Commercial Mortgages (as of October 15, 2009)

Property Type	Mid-Point of Commercial Mortgage Rate Spreads for 5-10 Year Fixed-Rate Mortgages
	8/20/09	9/01/09	10/1/09	10/15/09	10/28
Multifamily: Non-Agency	+400	+425	+350	+350	+340
Multifamily: Agency	+220	+240	+240	+240	+220
Regional Malls	+470	+458	+458	+438	+438
Strip/Power Centers	+465	+465	+465	+450	+450
Multi-Tenant Industrial	+475	+488	+470	+465	+440
CBD Office	+443	+460	+460	+450	+425
Suburban Office	+478	+475	+475	+475	+475
Full-Service Hotel	+525	+563	+563	+550	+550
Limited-Service Hotel	+550	+575	+575	+575	+575
5-Treasury	2.65%	2.47%	2.41%	2.41%	2.37%
10-Year Treasury	3.46%	3.45%	3.43%	3.49%	3.44%
Source: Cushman & Wakefield Sonnenblick-Goldman, LLC.

Property Type	Mid-Point of Floating Rate Commercial Mortgage Rate Spreads for 3-5 Year Fixed-Rate Mortgages
	8/20/09	9/01/09	10/01/09	10/15/09	10/28/09
Multifamily: Non-Agency	+413	+413	+413	+375	+375
Multifamily: Agency	NA	NA	NA	NA	NA
Regional Malls	+500	+475	+450	+413	+413
Strip/Power Centers	+488	+488	+438	+413	+413
Multi-Tenant Industrial	+488	+413	+388	+388	+388
CBD Office	+488	+375	+375	+375	+375
Suburban Office	+550	+388	+400	+400	+400
Full-Service Hotel	+650	+600	+600	+538	+538
Limited-Service Hotel	+725	+650	+650	+600	+600
1-Month LIBOR	0.27%	0.26%	0.25%	0.24%	0.24%
3-Month LIBOR	0.43%	0.38%	0.29%	0.28%	0/28%
Source: Cushman & Wakefield Sonnenblick-Goldman, LLC.

	Spread in Basis Points over Interest Rate Swaps
	Current	3 Months Ago
AAA	500	550
AA	2948	3200
A	3579	4091
BBB	5126	5912
BBB-	6231	7007
Source: Trepp

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.  A number of this week’s shoes included the following:

None; too busy at the ULI Fall Meeting!

Monday’s Numbers

Year-to-Date Equity Market Performance (as of November 8, 2009):

DJIA⁽¹⁾: +14.21%
S & P 500⁽²⁾: +18.38%
NASDAQ⁽³⁾: +33.95%
Russell 2000⁽⁴⁾: +16.20%
MSCI U.S. REIT⁽⁵⁾: +6.59%

(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 November 8, 2009)

3-month: 0.04%
6-month: 0.15%
2-Year: 0.84%
5-Year: 2.25%
10-Year: 3.50%

Top Four Markets for Real Estate

This post was written by Trisha Riggs, vice president of communications for ULI.

Washington, D.C. ranks as the top market in the United States for real estate investment and development, which, in the current economic environment, means it is the least troubled. So says the 2010 version of Emerging Trends in Real Estate®, released this week at ULI’s Annual Fall Meeting in San Francisco.

The widely anticipated annual industry overview, copublished by ULI and PricewaterhouseCoopers, was based this year on a record number of surveys and interviews with more than 900 developers, investors, brokers, analysts, researchers, appraisers, and academics. The overriding sentiment: No one is bullish on any particular market--even the perennial favorites such as Washington. Still, despite the faint enthusiasm, the report notes that "markets performing well before the crash will perform better coming out of it, while those lagging before will continue to lag."

The top four markets--all of which are gateway, 24-hour cities heavy on brain power with significant geographic barriers to entry:
• Washington: "Always the top market during recessions, buffered by the federal government;"
• San Francisco: "Highly volatile, but bounces back quickly;"
• Boston: "All those universities help buffer the market;" and
• New York: "Wall Street is down, but not out and always reinvents itself"

The number five market, Houston, is not a gateway city, but is an energy capital with a talented workforce, says the report.

Out of favor: manufacturing centers (mainly in the Midwest); secondary or tertiary cities requiring a flight connection to go overseas; formerly high-growth markets now suffering from overdevelopment and a bubble burst; and places where most development has been concentrated on the fringe.

Emerging Trends predicts that investment and development will start to pick up steam in a couple of years. In the meantime, those who are in a position to do so should buy or hold multifamily; buy hotels; buy distressed condos and second homes; buy land; buy or hold industrial; hold office; and apply a "triage" approach to retail.

Looking past the recession, "The future is about green development, infill, and transit-oriented development."

Demographics of the Next Decade Will Transform New Housing and Retail

This post was written for The Ground Floor by Robert Krueger, communications associate with the Urban Land Institute.

SAN FRANCISCO -- There is no doubt that the big question at this year’s ULI Fall Meeting is what the U.S. and international markets will look like once the recession is over. For those in the industry, they realize that this economic downturn is uncharted territory and uncertainty for the future leads to many unanswered questions. A session panel focused specifically on the next decade and the implications that changing demographics will have on commercial real estate and land use patterns. Specifically, the panel answered the question of how people of the next decade will live, play, and shop.

The panel discussed two main demographic groups that will drive the next decade’s housing market: Generation Y and their parents (the aging baby boomers). As one panelist, Deborah L. Brett, president of Deborah L. Brett & Associates, stated that the demand from these two generations will determine the location of housing and heavily influence the success of retail and office space. 

James H. Johnson, director of the Urban Investment Strategies Center at the University of North Carolina, got more specific by addressing what he called 'disruptive demographics."”  With this, Johnson referred to changing demographics that are seriously altering real estate development and needs that have been in place for over a generation.

"The browning and graying America will transform all of our political and economic institutions, but especially real estate," said Johnson. "Increased minorities, immigrants, and seniors make up this package."

Brett pointed to the implications of these two generations as well as other statistics that are changing the market.  These include:

• Little or no growth in purchasing power due to the expectation of continued stagnation of household income over the next decade.

• Changes in the work place, such as delayed retirement, working from home, and computer based virtual meetings instead in-person less business travel.

• Greater diversity in housing since there are more single households, nontraditional households comprised of multiple roommates, and more minority and immigrant groups.

Will commercial real estate be in a position to handle these changes? In a publication released at the Fall Meeting, Five ULI Fellows Present Ideas for the Next Years, ULI senior resident fellow John McIlwain, said that these two groups and other changing demographics "will bring long-term growth to cities and help redevelop town centers. The bad news is that it is unlikely that enough new housing can be built in urban areas to meet this growing demand.  The result is likely to be rising urban housing costs--good for developers and owners and bad for homebuyers and renters with limited funds."

New Models for Resort Development

This post was written for The Ground Floor by Robert Krueger, communications associate at the Urban Land Institute.

SAN FRANCISCO -- What will resort development look like in a post-recession economy?  As investors experience the worse market collapse in a generation, the best and most talented professionals in the resort development industry have taken advantage of the current economic climate by researching and reinventing themselves so that they are better prepared for when people start buying again. During a session at the Urban Land Institute’s 2009 Fall Meeting in San Francisco, a few of these developers spoke about what innovative solutions are paying off and the industry transformation that they are experiencing.

The consensus of the panel appeared to be: The future of the resort will emphasize social and environmental responsibility. According to one panelist, Brian De Lowe of Viceroy Hotel Group of Los Angeles, California, the "resort development model of the past is dead." Lowe said that there needs to be a revised model for the industry that makes projects more adaptable to the market. There needs to be a diverse combination of brands instead of the "traditional resort." The old method of stamping out traditional-style resorts will not work in the future. He presented a "Triple Bottom-Line Thinking," which weaves the need to make profit with a wider balance of social and environmental responsibilities for the local community. While sustainable development is not a new concept, Lowe emphasized how this approach is attractive local governments. Particularly in tough economic times, partnering with government can help relieve some of the costs.

"Governments like being involved with such developments," Lowe said.  "They feel that they are helping to protecting the area's human heritage and natural landscape . . . such measures are attractive to buyers since it adds to an authentic experience that is unique."

Rebecca Zimmerman, president of Design Workshop, later spoke of what it means to be simple, in regards to amenities. She highlighted the need to create experiences and going back to nature." Social connection is truly important," she said. "Now, people need people, and people find social nourishment by engaging with others."

She emphasized that when people begin buying again, what they will look for is places that show social and environmental awareness. In addition, Zimmerman stated that simple, natural amenities are critical to attracting knowledge-based workers.

She pointed out the fact that 82 percent of the U.S. population walk outdoors for either fun or exercise and that such numbers show the growing trend of the future: a desire for simple amenities that do not cost $50 million each.

"It is about being simple and bringing people back to the places that are already built," Zimmerman added. "More is no longer better. The key is simple…but connected. What are needed are such things as easy acquisition to airports with daily flights to major cities. Economic growth is a combination of amenities, telecommunications, and availability to air travel. This brings a whole new obligation to sustainable development."

Paranoid Optimism: The Best Attitude Toward Economic Recovery

This post was written by Trisha Riggs, vice president of communications for ULI.

"Paranoid" optimism--a belief in the ability to overcome the negatives that could be coming--may be the best attitude to take regarding the economy’s recovery, according to renowned economist Bill Emmott. The former editor-in-chief of The Economist provided a global economic outlook during yesterday’s opening session of ULI’s Annual Fall Meeting in San Francisco.

Borrowing an analogy from former U.S. Department of Defense Secretary Donald Rumsfeld, Emmott said that moving from recession to recovery might best be analyzed by considering the "known knowns" versus the "known unknowns."

Among Emmott’s known knowns: 

• An economic recovery is underway to some extent in most countries, with the rebound in the U.S. and Western Europe being more gradual while China and India will be more immediate.
• Economic globalization and openness to cross-border trade has remained intact. "We are seeing some sense of global sharing of the rebound," Emmott said.
• A continuation of the fiscal stimulus in the U.S. and Western Europe helps to keep the momentum going.
• An acknowledgement that consumers remain cautious and that consumer spending will not lead the recovery.
• The likelihood that more government-funded programs will be created in the U.S., China, and Japan.
• The likelihood of tighter financial regulation in the U.S. and the U.K.

Among the "known unknowns":

• The extent to which consumers and corporations will pay down debt.
• How quickly eliminated jobs will be recreated.
• How quickly the value of Chinese currency will be re-evaluated in relation to the dollar. Quicker re-valuation so the currency is not artificially low would benefit world trade and revive U.S. exports, Emmott noted.
• The future of oil prices, which as yet have not reflected the global recession.

The known unknowns, Emmott said, have created a course of "uncharted waters" that could change the character of the economic recovery. His reasons for optimism: a belief that job growth will occur sooner rather than later; faith in the flexibility of the economy, particularly that of the U.S.; and encouraging prospects for U.S. exports.

"Be realistic but positive," he advised ULI fall meeting attendees. "There is much we do not know, but new situations bring as many positive possibilities for growth and change as negative ones. Paranoid optimism is the right feeling to have as we move forward."  

ULI Releases "Bay Area Burden" Report

This post was written by Trisha Riggs, vice president of communications for ULI.

Workers in the San Francisco Bay Area area are caught between a rock and a hard place, when it comes to the trade offs involved in choosing between less expensive housing and longer commutes. A new study from the Urban Land Institute Terwilliger Center for Workforce Housing analyzed the combined costs of housing and transportation for nine counties in the region and found that workers pay as much as 65 percent of their incomes for both, placing them in the "severely burdened" category.

It’s a sobering measurement of the costs of living (and working) in the Bay Area, and a stark reminder of the very real impact of land planning conducted out of sync with transportation planning.

The report, Bay Area Burden, was released this week in San Francisco in conjunction with ULI’s Annual Fall Meeting, as part of the Institute’s focus on pressing urban issues affecting long-term community sustainability. The report highlihghts the need for more housing that is affordable to mainstream workers to be built near employment areas in high-cost markets.

"This heavy burden forces residents to make extremely difficult decisions that pit housing and transportation choices against other basic needs such as health care, education and food," said ULI Terwilliger Center Chairman J. Ronald Terwillliger.  "These findings reinforce that years of ever-sprawling development have resulted in a growing gap between where people live and where they work." Terwilliger, chairman and chief executive officer of Trammell Crow Residential, founded the center in 2007 to help achieve a measurable increase in the supply of workforce housing in high-cost markets throughout the nation.

"This report underscores the importance of broadening the understanding surrounding some of the challenges associated with housing affordability to also include transportation costs, travel time and the negative environmental impacts of commuting," said former U.S. Department of Housing and Urban Development Secretary Henry Cisneros, a member of the ULI Terwilliger Center Advisory Board.

Along with the report, the ULI Terwilliger Center is providing an online consumer calculator to help workers determine how much they are paying for housing and transportation, depending on where they live and work. The goal of Bay Area Burden: to raise awareness among consumers and policy makers of how much they are really paying for their location decisions.

The ULI Terwilliger Center is expected to release a similar report next year for the Boston metropolitan area, which will be timed to coincide with ULI’s 2010 Spring Council Forum in that city.

Monday's Numbers and Noteworthy News

Happy Halloween!

In response to reader’s suggestions, we are re-ordering—slightly—the order of presentation as well as adding commercial mortgage-backed securities trading spreads.

Commercial Mortgage Alert mortgage spreads based upon a weekly survey of 15 active portfolio lenders conducted by Trepp, the analytics firm.

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)
	10/2	10/9	10/16	10/23
Office	391	407	385	381
Retail	405	430	403	398
Multifamily	361	375	339	335
Industrial	373	395	379	377
Source: Trepp

Indicated Spreads for Conventional Fixed and Floating Commercial Mortgages (as of October 15, 2009)

Property Type	Mid-Point of Commercial Mortgage Rate Spreads for 5-10 Year Fixed-Rate Mortgages
	7/29/09	8/20/09	9/01/09	10/1/09	10/15/09
Multifamily: Non-Agency	+350	+400	+425	+350	+350
Multifamily: Agency	+220	+220	+240	+240	+240
Regional Malls	+475	+470	+458	+458	+438
Strip/Power Centers	+450	+465	+465	+465	+450
Multi-Tenant Industrial	+463	+475	+488	+470	+465
CBD Office	+420	+443	+460	+460	+450
Suburban Office	+460	+478	+475	+475	+475
Full-Service Hotel	+453	+525	+563	+563	+550
Limited-Service Hotel	+550	+550	+575	+575	+575
5-Treasury	2.70%	2.65%	2.47%	2.41%	2.41%
10-Year Treasury	3.69%	3.46%	3.45%	3.43%	3.49%
Source: Cushman & Wakefield Sonnenblick-Goldman, LLC.

Property Type	Mid-Point of Floating Rate Commercial Mortgage Rate Spreads for 3-5 Year Fixed-Rate Mortgages
	7/29/09	8/20/09	9/01/09	10/01/09	10/15/09
Multifamily: Non-Agency	+413	+413	+413	+413	+375
Multifamily: Agency	NA	NA	NA	NA	NA
Regional Malls	+550	+500	+475	+450	+413
Strip/Power Centers	+538	+488	+488	+438	+413
Multi-Tenant Industrial	+488	+488	+413	+388	+388
CBD Office	+525	+488	+375	+375	+375
Suburban Office	+600	+550	+388	+400	+400
Full-Service Hotel	+650	+650	+600	+600	+538
Limited-Service Hotel	+725	+725	+650	+650	+600
1-Month LIBOR	0.29%	0.27%	0.26%	0.25%	0.24%
3-Month LIBOR	0.49%	0.43%	0.38%	0.29%	0.28%
Source: Cushman & Wakefield Sonnenblick-Goldman, LLC.

	Spread in Basis Points over Interest Rate Swaps
	Current	3 Months Ago
AAA	465	646
AA	3908	3511
A	3554	4412
BBB	5186	6283
BBB-	6191	7378
Source: Trepp

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.  A number of this week’s shoes included the following:

Updating last week’s story: Nine Bank Failures (This Week) Brings Total to 115 for the Year
Perspective: 115 bank failures is the most in one year (and we still have 8 weeks to go) since the height of the savings and loan crises in the early 1990s.

Perspective: The “Over-Under” on the number of bank which will fail during the current crises is 400!

Monday’s Numbers

Year-to-Date Equity Market Performance (as of October 30, 2009):

DJIA⁽¹⁾: +10.67%
S & P 500⁽²⁾: +14.72%
NASDAQ⁽³⁾: +29.68%
Russell 2000⁽⁴⁾: +12.68%
MSCI U.S. REIT⁽⁵⁾: +6.81%

(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 October 30, 2009)

3-month: 0.04%
6-month: 0.16%
2-Year: 0.89%
5-Year: 2.31%
10-Year: 3.38%

Celebrating Parking

This post was written for The Ground Floor by Robert T. Dunphy, Transportation Consultant and Emeritus Fellow, at the Urban Land Institute.

Parking is the Rodney Dangerfield of transportation--it gets no respect. Other than parking books by ULI and a limited number of sources, industry advocates and a few parking wonks, the topic has received little critical attention from analysts or designers.

Parking one’s vehicle is normally relegated to vast expanses of surface lots, nasty parking garages, or left to back alley operators. So a new exhibit at the National Building Museum in Washington, D.C., House of Cars: Innovation and the Parking Garage, the first major exhibition to explore the history of this familiar structure , is an exciting opportunity for those interested in opening conversations about innovative designs and parking solutions for the future, and "how it can be a valuable component of responsible and sustainable city planning." The idea for the exhibition was brought to the Museum by Shannon Sanders McDonald, author of The Parking Garage: Design and Evolution of a Modern Urban Form, published by the ULI.

The presenting sponsor of House of Cars: Innovation and the Parking Garage is the National Parking Association, headquartered in Washington, D.C. "We are honored to be the presenting sponsor of this exciting exhibition," said Martin L. Stein, President, whose organization has served the industry since 1951.

House of Cars explores how the parked car has changed our built environment. Since cars spend most of their time at rest, parking facilities are probably more important than roads. For commercial developments, the amount of space required for parking exceeds that for businesses and shoppers, so parking is the bigfoot of development.

This exhibit reminds us of the days before DIY when parking required attendants to negotiate storing and retrieving vehicles. Eventually, ramping systems were developed that allowed customers to park their own cars, increasing convenience and eliminating labor. The exhibition concludes with a look at the future of parking, featuring "green garages" innovative designs.

The exhibit is on display through July 11, 2010 at the National Building Museum, and a traveling exhibition will accompany the NPA in their upcoming conventions. If you can’t make it to Washington, catch it elsewhere, a great opportunity to rethink an important urban design challenge--how we find places to park cars, so necessary to making places work, without making them hostile to visitors.

Monday's Numbers and Noteworthy News

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:

Seven Bank Failures (This Week) Brings Total to 106 for the Year
Perspective: 106 bank failures is the most in one year (and we still have 9 weeks to go) since the height of the savings and loan crises in the early 1990s.

Perspective: The "Over-Under" on the number of bank which will fail during the current crises is 400!

Monday’s Numbers

Year-to-Date Equity Market Performance (as of October 24, 2009):

DJIA⁽¹⁾: +13.963%
S & P 500⁽²⁾: +19.52%
NASDAQ⁽³⁾: +36.62%
Russell 2000⁽⁴⁾: +20.16%
MSCI U.S. REIT⁽⁵⁾: +10.44%

(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 October 24, 2009)

3-month: 0.05%
6-month: 0.17%
2-Year: 1.00%
5-Year: 2.45%
10-Year: 3.49%

Commercial Mortgage Alert has added loan spreads to its weekly “Market Monitor” data page. The spreads are based upon a weekly survey of 15 active portfolio lenders conducted by Trepp, the analytics firm. Survey participants include: national banks, insurance companies, and finance companies.

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)
	9/30	10/2	10/9	10/16
Office	381	391	407	385
Retail	396	405	430	403
Multifamily	334	361	375	339
Industrial	373	383	395	379
Source: Trepp

Indicated Spreads for Conventional Fixed and Floating Commercial Mortgages (as of October 15, 2009)

Property Type	Mid-Point of Commercial Mortgage Rate Spreads for 5-10 Year Fixed-Rate Mortgages
	7/29/09	8/20/09	9/01/09	10/1/09	10/15/09
Multifamily: Non-Agency	+350	+400	+425	+350	+350
Multifamily: Agency	+220	+220	+240	+240	+240
Regional Malls	+475	+470	+458	+458	+438
Strip/Power Centers	+450	+465	+465	+465	+450
Multi-Tenant Industrial	+463	+475	+488	+470	+465
CBD Office	+420	+443	+460	+460	+450
Suburban Office	+460	+478	+475	+475	+475
Full-Service Hotel	+453	+525	+563	+563	+550
Limited-Service Hotel	+550	+550	+575	+575	+575
5-Treasury	2.70%	2.65%	2.47%	2.41%	2.41%
10-Year Treasury	3.69%	3.46%	3.45%	3.43%	3.49%
Source: Cushman & Wakefield Sonnenblick-Goldman, LLC.

Property Type	Mid-Point of Floating Rate Commercial Mortgage Rate Spreads for 3-5 Year Fixed-Rate Mortgages
	7/29/09	8/20/09	9/01/09	10/01/09	10/15/09
Multifamily: Non-Agency	+413	+413	+413	+413	+375
Multifamily: Agency	NA	NA	NA	NA	NA
Regional Malls	+550	+500	+475	+450	+413
Strip/Power Centers	+538	+488	+488	+438	+413
Multi-Tenant Industrial	+488	+488	+413	+388	+388
CBD Office	+525	+488	+375	+375	+375
Suburban Office	+600	+550	+388	+400	+400
Full-Service Hotel	+650	+650	+600	+600	+538
Limited-Service Hotel	+725	+725	+650	+650	+600
1-Month LIBOR	0.29%	0.27%	0.26%	0.25%	0.24%
3-Month LIBOR	0.49%	0.43%	0.38%	0.29%	0.28%
Source: Cushman & Wakefield Sonnenblick-Goldman, LLC.