If Spread	5 year	10 year
	2.25	5.45	6.15
	2.50	5.70	6.40
	2.75	5.90	6.65
	3.00	6.20	6.90

In spite of numerous lenders going out of the market, most of our lending accounts remain active in funding commercial real estate loans. In fact, many have been on a torrent pace year-to-date and have either filled quotas or are slowing the system by increasing spreads and/or becoming more selective on deals. The bottom line, however, is that capital still exists.

The life companies are quoting between 200 and 300 over the Treasuries today, depending on their respective benchmark for determining commercial mortgage rates. (Yes, there is quite a divergence!) So, for quality loans, 10-year rates are still available in the 6% range.

CMBS lenders are all but DOA and there is no sign of revival for maybe six months or more. No buyers of CMBS bonds have surfaced and the credit-rating of past bonds is suspect.

Underwriting disciplines have also returned to the marketplace. With talk of recession, lenders have returned to underwriting risk. Our strong local economy and high diversity is still appealing to lenders and provides for the most favorable underwriting parameters.