James Real Estate RE Fin Terms Dnvr 2000 3rd Qtr Page 6
6
Sources: Barron's - John B. Levy and Company in "National Real Estate Investor", Federal Reserve Bank of New York, and The
Genesis Marketing Group
Average maturities of commercial loans vary broadly, however they are concentrated in the seven
to ten year range. The unweighted mean debt coverage ratios of ACLI's surveyed commitments for the
first quarter of 2000 was 1.47 for apartments, 1.55 for office buildings, 1.47 for retail and 1.31 for
industrial. Unweighted mean loan to value ratios are 68.8% for apartments, 67.3% for office buildings,
69.9% for retail and 71.9% for industrial.
The American Council of Life Insurance (ACLI) prepares a report on mortgage commitments
made each quarter greater than $100,000. A summary of average rates associated with each property type
is shown on the following page.
Government Bond - Commercial Mortgage Interest Rate Comparisons
Quarterly Averages - 1993 through Second Quarter 2000
5.0%
5.5%
6.0%
6.5%
7.0%
7.5%
8.0%
8.5%
9.0%
9.5%
1/93 2/93 3/93 4/93 1/94 2/94 3/94 4/94 1/95 2/95 3/95 4/95 1/96 2/96 3/96 4/96 1/97 2/97 3/97 4/97 1/98 2/98 3/98 4/98 1/99 2/99 3/99 4/99 1/00 2/00
Quarter/Year
Yi
el
d
o
r
I
n
ter
est Rate
30-Year U.S. Government Bond Yield
Prime 7-Year Commercial Mortgage Rate
