Weekly Market Reports

September 17, 2010

2010-09-20T10:05:00.004-06:00

Tim’s Market Report
September 19, 2010
We reach to the past to find our future. I’ve said that dozens of times and its true. And in that vein, I
was thinking about the economy last week and whether or not we’re likely to recover soon. And in that
vein, I was reconsidering the Panic of 1837. In my mind, the Panic of 1837 very much resembles what
we’ve been struggling with. It was a time when “the American people gave themselves to an amazing
extravagance of land speculation”. . . when fraud was doubtless existent “but was incidental to the
honest delusion of intelligent men who had all drunk in the national intoxication over American success
and growth.”
The Panic of 1837 was a 5 year national depression that was brought‐on by the several previous years of
rampant real estate speculation; where you could buy government land for $1.25 an acre and resell it
“at the market”. That speculation was promoted by Federal Government and banking interest’s policies;
and while businessmen and bankers were “prostrate with anxiety or irremediable ruin”, the only
remedy for recovery was time, industry and frugality.
Rich and po’ folk alike were paddling the same canoe in 1837. They were all broke and inhaling the
brackish smoke drafting from the fire of revolution present in the highly charged political and financiallychaotic
atmosphere of the time. Seth Luther, (one of the great orators of the time) said during his 1837,
4th of July rally speech, crying for effective financial institutional reform, “We will try the ballot box
first. If that will not affect our righteous purpose the next and last resort is the cartridge box!” Wow!
That’s passion. An Albany newspaper wrote, “Remember the fate of the working men. They were soon
destroyed by rolling parties. . . They admitted into their ranks broken‐down lawyers and politicians.
They became perverted and were unconsciously drawn into a vortex from which they never escaped.”
(Hmm . . . Sounds like it was time for their tea party! . . )
Sincerely,
TJL Tim Leigh
719-337-9551
Tim@HoffLeigh.com

September 12, 2010

2010-09-13T09:57:00.005-06:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
09.12.10

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $99.25 (NO CHANGE from last week)
We are currently tracking 80 office buildings for sale.
This is 752,017 square feet, which represents a total market value of $74,634,118

All Market Average Industrial Building Sale Price PSF = $76.43 (DOWN $10.29 from last week)
We are currently tracking 66 industrial buildings for sale.
This is 838,281 square feet, which represents a total market value of $64,070,106

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/8.20.10.pdf

Tim’s Market Report
September 12, 2010

It was 6:00 O’clock already and by the time I looked up and out the window it was still dark outside. And I thought to myself “that can’t be good”. Where did the summer go? And you know it’s a slippery slope - the journey to the cold dark north. I know from first-hand experience. I grew-up in the cold dark north. I know how seductive a Vixen she is. First she lures you into a sense of false security; that the never-ending summer will never end. Ah, but she’s a wily trickster; she’ll ply you with her flirtatious nature; sizzling day-time temperatures followed by amazing, windless, icy-crisp evenings perfect for outdoor camp fires, a feisty merlot and deep sleep; and azure daytime skies so deep that when you stare at them against the black backdrop of the Colorado Rocky Mountains you have to squint or hurt your eyes. But, be warned, she is a trickster, so “enjoy the summer while you can”, because winter is on the way. . . .

Winter is on its way because we are spending ourselves broke. There’s no other way to say it. This year’s Federal deficit will be the 2nd largest in the past 65 years (2nd only to last year’s). And according to the Congressional Budget Office (CBO), we’ll have something like a $1.3 trillion dollar debt (a number followed by 12 zeros) for the foreseeable future. And here’s a revelation; that debt has to be repaid by someone. To continue this lunacy, someone has to invest a boat load of dough into US Treasury bonds every year and the big question is, “Who?” Some of those investors will be foreigners but the rest will be us by way of 1) an increase in taxes; or 2) people saving more and putting that savings into US Bonds (not likely) or 3) monetizing the debt (say inflation out loud 3 times). Choose your poison.

Relative to the size of the economy, this year’s deficit is expected to be at 9.1 percent of GDP which deficit will be exceeded only by last year’s deficit of 9.9 percent of GDP. Having a deficit of 9-10% of GDP is unsustainable. It leads to an ever increasing buildup of more debt on top of more debt that eventually triggers higher interest rates & (say inflation out loud 3 times.)

There’s a theory that says the way to a balanced budget is productivity; that you can “grow yourself out of a financial mess”; that if you produce & sell more, the extra income derived from those sales allows you to pay-down debt. Most bright thinkers say that as a national economy, we have to produce more stuff and sell more stuff to more people outside of our economy. (Pssst. . . Here’s a hint – we have to do the same thing locally!)

We need to brand ourselves and sell ourselves as a city worthy of consideration. We have to recognize that the enemy is not us; it’s the global economy. As a community, we need to work together (that would be the public sector & and the private sector) to present a unified front in the global marketplace. Hey, hey; call me crazy.

I’m just saying. . .

Sincerely,
TJL Tim Leigh
719-337-9551
Tim@HoffLeigh.com

August 20, 2010

2010-08-23T10:09:00.001-06:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
08.22.10

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $103.52 (UP $0.65 from last week)
We are currently tracking 92 office buildings for sale.
This is 835,185 square feet, which represents a total market value of $86,458,436.

All Market Average Industrial Building Sale Price PSF = $87.59 (DOWN $1.68 from last week)
We are currently tracking 74 industrial buildings for sale.
This is 918,696 square feet, which represents a total market value of $80,471,406.

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/8.20.10.pdf

Tim’s Market Report
August 22, 2010

I don’t like broccoli. I don’t like the texture, the taste or the smell. I don’t like recessions, deflation or systemic financial resets. Unfortunately, broccoli is good for you and unfortunately we have periodic resets. And as they say, “what doesn’t kill you makes you stronger” if only you’ll lean back and learn from the now and the past and craft your future avoiding obvious mistakes. And my lesson learned from these experiences. . . “Avoiding mistakes is the key to long-term success!”

In the meantime, people I’m reading say that, at least for the immediately-foreseeable future, we should expect financial gloom & doom, uncertainty and chaos. It’s their contention that the so-called V shaped recovery was a myth; that it was driven by restocking inventories then the stimulus but was never sustainable because there was no concomitant demand. They say the problem will be exacerbated now by resetting commercial estate loans which will not be “reset” but called and sold at a discount.

Previously, questionable commercial real estate loans had been hidden on bank balance sheets by design. The Treasury Department told banks to “extend the loans & pretend the market would recover”. This was also known as “delay & pray”. . . and, yes he said cynically, “that was a great strategy!” Now the Office of the Comptroller of the Currency is telling banks to take the loss; eat the broccoli; get poorly performing loans off-the-books. Unfortunately, typically, the government’s plan is screwing up the system. Their idea of “poorly performing” encompasses loans that are performing well by themselves, but where the borrower has other, non-performing loans (even with another bank). Banks are being told to look at the borrower’s aggregate situation and place all of his loans into the same “poorly-performing-bucket” if he has “any” chinks in his armor. Loans are being tarred with a singularly unfair brush. Ah, but, would we expect any less from Federal Regulators?

And speaking of loans, last week was a bitter-sweet adventure for me. I had a few partners bail-out of deals and others reaffirm their commitment. That’s called perspective & time-line. The folks who bailed-out are good guys; they just see the world through dark, gray, foreboding lenses. They believe the market’s still tanking and in that case it’s better to cut & run. The folks who recommitted may not be any more optimistic about the short run, but they’ve concluded that at some point values will recover and that it’s better to keep riding the pony they’re on rather than sell short for the loss.

What’s my prediction: We’re going to live with a new reality – instead of the hoped-for, sharp-spike of recovery, the economy will “slog along” interminably (5 – 7 years); profits will remain flat; GDP will remain flat to neutral; the national savings rate will increase because anxious spenders will not spend; we’ll experience higher-than-normal unemployment (the new normal) and the continuous deleveraging of real estate will cause continuously diminishing values in the mid-term; taxes will increase causing a further drag on the economy; the Bush tax cuts disappear and personal tax rates increase January 1st; the marriage penalty grows; the child tax credit halves and the death tax returns; and, to add insult to injury, the capital gains tax will increase from 15% to 20%!

Is there any good news? Sure; remember, 10% unemployment means 90% employment; crashing real estate values spells OPPORTUNITY. It’s a great time to reset your values, bargain hunt and ready yourself for the next cycle. Tough times are God’s way of telling us to adjust our lives - personally & professionally. Those who adjust move on and some prosper; those who don’t will get caught in the mire and bilge and flounder.

And speaking of opportunity – an update: the 6 acres we’re selling on North Carefree & the building on LaSalle Street, both, which are being Dutch Auctioned, drop their respective prices $50,000 this week. Both started at the Assessor’s value and will drop $50,000 every 2 weeks until they sell. If you want to find out more, call me (719-337-9551).

And from the Campaign

A friend (who knows I’m “at play” for an At Large Council seat) called to ask if I could help him. He wanted to be connected with someone in the police department so he could plead for patrols in his neighborhood. His business is located on South Sierra Madre Street, in an industrial area that continues to be overrun by homeless folks who normally spend most nights and much of each day in deep sleep around the Labor Ready building. I told him to “forget about it!” We don’t have the policing horse-power to patrol chronic, but mostly benign situations.

His problem points to a larger philosophical question however that merits discussion. “Do we want and do we have adequate police and fire protection?” OK, I get that we don’t want to raise taxes for the general fund because we don’t trust “the leaders” to do the “right thing”. But, who doesn’t want adequate police & fire protection?

As for the cops; the staffing is so low that you’re called to report your minor crime “on-line” and then “forget about it!” For major incidents, I’ve been told the guys can only staff-up for 1 at a time. Think of a shooting at a downtown nightclub and a simultaneous major car accident on I-25. At current staff levels, we have to pick one. Or consider how unmotivated a 20-something guy with a couple of small kids at home must be when he’s asked to report, “guns-a-blazing” to a gang-violence incident when he feels like nobody appreciates the sacrifice?

As for the fire-guys; I’ve ridden around with them and they’re awesome but they’re not really fire-guys. They’re mostly our 1st response medical team. Here’s the conundrum. We want to pay less and get more. This is bad economics and bad policy. Do you really want the 1st response for your heart attack to be from the lowest bidder?

So, here’s an idea worthy of consideration; let’s talk about increasing the PSST (that is the special sales tax that specifically helps fund the police and fire guys) and let’s take care of the guys who take care of us. Let’s play this game at a higher level and fund to obtain & retain the best of the best. And, yes, I know the arguments about pensions and pay and frankly, I wouldn’t do what they do for what we pay. In fact, I think these guys should be paid hazardous duty pay. And surely, with our strong military orientation, we should understand that. In this specific area of government, public safety, I’d like to have an “A” team and I’m willing to pay to get it.

Oh, and for the cynics out there, I was not solicited by the police or fire guys to advocate this thought. It just seems that this is a common sense approach to solving this public policy problem, which because of other “issues of the day” is not getting any forward looking thought.

I’m just saying. . .

Sincerely, TJL Tim Leigh 719-337-9551 Tim@HoffLeigh.com

August 8, 2010

2010-08-08T17:02:00.003-06:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
August 8, 2010

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $102.82 (UP $0.05 from last week)
We are currently tracking 89 office buildings for sale.
This is 822,894 square feet, which represents a total market value of $84,613,436.

All Market Average Industrial Building Sale Price PSF = $89.06 (DOWN $0.93 from last week)
We are currently tracking 76 industrial buildings for sale.
This is 936,019 square feet, which represents a total market value of $82,295,406.

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/8.6.10%20Colorado%20Springs%20Business%20Journal%20Ad.pdf

Tim’s Market Report

This is the day the Lord has made. . . Let us rejoice and be glad in it!
Mr. Tim’s favorite thanksgiving admonition

And this is the day the Lord hath made baby Maria Grace Trinidad. While she hasn’t made her official appearance, (she probably has a couple more hours to percolate), Holly called RD and me off the golf course and now they’re at the hospital. I’ll always be grateful to the Little Maringo; she saved me from what may have been one of the worst rounds of my life. I had already lost 3 balls on the 1st two holes and it was going down-hill fast! Damn, I lost 1 ball with a tee-shot from a par three. I know - in unison - “That’s pathetic!” RD on the other hand was playing the round of his life. And speaking of life, I hope he knows that the one he knew is over.

And in the meantime, I’ve been studying Dave’s Data. Dave’s our chief statistician. His trend numbers don’t look any better now than they have for the past couple of years. The “office buildings for sale” market continues to be overpriced by nearly $32 per square foot when compared to the Assessor’s value. The “industrial buildings for sale” market is similarly overpriced. In dollars & cents that means we’ll have to clip around $27,000,000 from the price of office buildings and $28,000,000 from the price of industrial buildings to properly align ourselves with Mr. Market.

By zip code, the most overpriced areas are downtown and the old north end, the area along West Colorado Avenue, South 21st Street and interestingly, the areas along Fountain Boulevard and East Pikes Peak Avenue. Conversely, the least overpriced (attention K-Mart shoppers) are 80906 (Broadmoor Valley Road, Quail Lake Loop, Lake Plaza Drive, etc.), 80909 and 80917. The 2nd and 3rd zip codes include the awful real estate on Potter Drive where the highest & best use would be as a target for a wrecking ball; the area around the Citadel Mall, which I consider a looming disaster as the retail trade in that area continues to decline, Rebecca Lane, Carefree Circle, Academy Place and generally, the central Academy corridor, about which Fred Crowley said “without public & private partnership, it will take about 20 years to recover.”

And the CSBJ reported that we currently have a 10 year supply of vacant commercial property. Actually, I reported that statistic months ago and the data for that report should be rightfully attributed to Paul Turner who did the hard work. Turner also said it would take something like 20,000 new jobs to fill the existing available space. These numbers cry-out the very pressing need for continuous economic development and city-wide teamwork.

And, here’s a loose Tim Leigh paraphrase to think about - “Yea shall know the truth and it shall set you free (or totally jack your brain).” Rock Spencer recognized the truth last week. He agreed to Dutch-auction his 6 acres at the corner of Central Academy & North Carefree. We had it listed for $950,000. He agreed to immediately drop his price to the assessor’s valuation and then committed to continuing price reductions of $50,000 every 2 weeks until it sells. His lot will either prove to have no value or someone will determine its mark-to-market value and make a preemptive offer. Then another friend asked if we’d implement the same program for him. We agreed, and on Monday we’re going to start selling 2210 East LaSalle on the same basis. We’re starting at the Assessor’s valuation and dropping the price by $50,000 every 2 weeks . . . ah, the drums are beating and the dancers are dancing to the rhythm. . . Hearing all this, Steve Pope said I reminded him of PT Barnum to which I replied that he reminded me of Leo Tolstoy. . . I’m just saying.

And of course we’re on a continuous hunt for “good” deals with the operative word being “good”. We’ve been hunting for the fabled fountain of youth - income property with decent tenants & upside. Currently, we’re looking to deploy $500,000 in the 1st case and up to $3,000,000 in the 2nd; and in the 2nd case we’d also consider making hard-money conduit loans. In our quest, the kids managed to uncover a hidden gem; an “unlisted” property that they were able to broker to a friend.

The very clean industrial property closed at a 24% discount to the current mark-to-market appraisal. The buyer’s cap rate was something like 13%. And here’s a surprise, the biggest obstacle to closing was lending. The Buyer’s Denver bank, (with another leading market indicator), sent a kid who had never closed a commercial real estate loan. One could presume they fired their competent banker and restocked with a less expensive option. At least he was a Vice President and at least it closed.

When Sellers get real they’ll sell. But, at least for now it seems they’re content to enjoy a little smoke and be at peace with the world.

And then I noticed Sean Paige sent a friendly shot across my bow last week. According to Sean’s blog, “Tim Leigh is back . . . and in the hunt for an at-large City Council seat.” Sean, I’m not back; I never left. I’ve been in the low corner of the offensive zone digging for the puck of truth & clarity. I’ve continued to diligently go about the business of learning and building bridges to the future.

As you know, I’ve spent months learning about our city & systems and at some point I concluded that (at this time) I wasn’t likely the right guy for the Mayor’s chair. That revelation did not diminish my willingness to serve and Sean should applaud that I’m bright, mature & courageous enough to recognize and publicly admit that. Then, after personal reflection, I determined that because of what I’ve learned I could potentially be a valuable community asset; a well-informed and thoughtful at-large council person with some common sense. So, here’s an idea – instead of lobbing volleys, give credit where credit is due.

And by the way, I had not stopped traveling down the narrow path of the lone-wolf. In fact, just last week I was fortunate enough to have been included on a city leader’s tour of NORAD; I was involved in a conversation about “cutback management and the paradox of publicness” and I learned that we have around $8,000,000 in the bank that we can’t spend because we still don’t understand ramifications of the passage of proposition 300. And I fairly guarantee, that based on what I’ve since learned, if the average citizen fully understood what they voted for, they may not have voted the way they did on that issue. As you know, I contend that well informed citizens will normally make the right decision and the right decision is not normally knee jerk! And on that issue, I’m not sure the citizens were as well informed as they could or should have been.

Sean went on to say incorrectly, “Tim says he wants to be a candidate not of the people”. I don’t know where that’s coming from and of course it’s not true. I’ve always been a candidate for everyone from every corner of the city and from every subculture. I’ve said repeatedly that we need to leave our prejudices & predilections at the door and work together for the benefit of the aggregate.

I did say “I’m still committed to the city employees & staff and plan to be their political advocate”. . . (but, please catch this important next part of that same statement) . . . “I’ll expect them to respond in kind with excellence, team work and an attitude of partnership with the private sector.” Where’s the crime? I’d lead and have high expectations. I’ll commit to our folks because I believe that with strong, ethical leadership they’ll rededicate themselves to the high standards and lofty ideals I believe in.

At the board level, some of the executives have used city staff and employees as the Bogeyman. I don’t recall reading any leadership magazines lately which say it’s a good idea for leaders to berate their followers. In fact, our staff & employees are not the Bogeyman and the enemy’s not us! The enemy’s the global marketplace! So now I’m merely stating the obvious – our bureaucracy needs to be encouraged to creatively partner with the private sector in our attempt to create an interesting, diverse and vibrant local economy.

I feel like I’m beating a dead horse and maybe it takes kicking-it when it’s down, but we need to become a city worthy of consideration; a World Class Destination.

We get there by working together.

I’m just saying.

Sincerely,

TJL
Tim Leigh
719-337-9551
Tim@HoffLeigh.com

July 30, 2010

2010-08-05T22:40:00.001-06:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
July 30, 2010

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $102.77 (UP $0.05 from last week)
We are currently tracking 90 office buildings for sale.
This is 826,478 square feet, which represents a total market value of $84,933,436.

All Market Average Industrial Building Sale Price PSF = $89.06 (DOWN $0.27 from last week)
We are currently tracking 74 industrial buildings for sale.
This is 924,969 square feet, which represents a total market value of $82,377,406.

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/7.30.10.pdf

Tim’s Market Report

I don’t know if your part of town was caught in the tempest, but as the fetching Mrs. Leigh so profoundly put it, “the darkest storms seem to come in the middle of the night”. All the granimals (If you don’t have one, you won’t understand) were upset; nobody got any sleep and if I miss some short putts at the EDC golf outing today, at least I’ll have an excuse – I’ll be a dead man walking.

I’m granimal sitting because Shannon went to Ft Jackson for Bryan’s graduation from the army’s Basic Combat Training School where he was selected as the #1 graduate from his basic training brigade (1,300 soldiers) and will receive the Soldier Leader of the Cycle award with special honors. I mention this because many of you know Shannon & Bryan and some of you had a hand in directing Bryan to the army. This is my way of updating & thanking you. Bryan found his path.

And that’s the point, isn’t it? Finding your path? Whether you’re an individual, a family, a business or a city . . . What do they say? “A plane without a glide path lands in the ditch and thinks it’s completed the mission successfully.”

How many folks work at things that are not their choice? How many run the family business because it was expected? How many CFO’s or doctors or lawyers wish they were bakers or chefs or forest service guides? Life is what happens on the way to fulfilling our plan and in many cases it’s unexpected.

And as you know, I began traveling down a pathway on a journey of personal discovery many months ago which led to my unexpected conclusion. With much hubris & bravado I announced that I was going to run for mayor. I made the announcement ahead of anybody’s schedule (except my own) on purpose. My intention was to set a new standard for those seeking the mayor’s office; that you’d actually have to figure-out the job description and become knowledgeable about city functions “before” you were elected - a novel approach. I thought my path led to the Mayor’s chair but ultimately concluded that it did not.

I’ve not stopped searching to find my way and because I’m very interested in the community conversation I have decided to run for an “at large” city council seat. True to form, this is a very early announcement. But, what the heck, we all know what early birds get and dipped in chocolate, it might be OK.

I’m still committed to job growth in the local economy and I believe that that growth should start from within. If we make this a city worthy of consideration, a World Class Destination, folks and their businesses will naturally wish to gravitate here. Think of the New Zealand model (a lush garden – a paradise on earth). They don’t pay anybody to move to New Zealand. In fact, I’ve been told that you have to prove you add substantial value to their economy before they’ll consider your application.

I’m still committed to the city employees & staff and plan to be their political advocate. Right now, they have no voice. And, no, they’re not the problem, their missing leadership is. But, as their advocate, I’ll expect them to respond in kind with excellence, team work and an attitude of partnership with the private sector. Look the enemy’s not us, it is the global economy.

I’m still committed to the neighborhoods. In fact, I’m working on a project right now to convert the 31st Street ditch (which is really Camp Creek) into a neighborhood amenity; and I’m committed to the creation of a downtown neighborhood walking mall on Pikes Peak Avenue from Nevada to Cascade anchored by the Mining Exchange Wyndam Grand Hotel on the East and the Antler’s Hotel on the West. Imagine the possibilities!

I’m still committed to the city - the entire city. We can be a city of greatness, but we have much work to do to get there. We’ll need partnerships & collaboration. We’ll have to figure out how to play in the sand box without kicking sand on each other.

Here’s one example. From 80,000 feet, I’m not sure the newly approved Copper Ridge Shopping Mall benefits the entire city.
Instead of the open prairie, did anybody consider locating the project as a re-fill (revitalization) on the central Academy corridor? If Copper Ridge is going to be so cutting-edge, folks would drive Academy to get there.

Did anybody consider a partnership with the already approved redevelopment-developers at Highway 24 & I-25? The infrastructure is in place.

Did the developers think about working together, merging land parcels and sharing a longer range vision that would have benefited the entire city instead of singular constituencies?

By the way, as to the argument that the new mall will create new sales, I’m pulling the BS card. There are only so many dollars in an economy. Period. Over construction of new retail space merely cannibalizes existing sales and therefore your neighbor. Period.

When you think of unbridled new development, keep this analogous story in mind. It was the winter of 1609 when our forefathers in Jamestown, so desperate with hunger cannibalized each other. From the Journals of the House of Burgesses of Virginia,

“. . . driven by insufferable hunger to eat those things which nature most abhorred, the flesh and excrements of man, digged by some out of his grave after he had lain buried three days and wholly devoured him; others, envying the better state of body of any whom hunger has not yet so much wasted as their own, lay wait and threatened to kill and eat them; one among them slew his wife as she slept in his bosom, cut her in pieces, salted her and fed upon her till he had clean devoured all parts saving her head.”

This is what happens when you don’t work together.

Would somebody please pass the bar-b-q sauce?

Keep it real.

Sincerely,

TJL

Tim Leigh

719-337-9551

Tim@HoffLeigh.com

July 23, 2010

2010-07-26T15:08:00.002-06:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
07.23.10

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $102.72 (UP $0.39 from last week)
We are currently tracking 89 office buildings for sale.
This is 817,118 square feet, which represents a total market value of $83,938,436.

All Market Average Industrial Building Sale Price PSF = $89.33 (UP $0.16 from last week)
We are currently tracking 71 industrial buildings for sale.
This is 905,614 square feet, which represents a total market value of $80,898,406.

Tim’s Market Report

I’ve been traveling this weekend to Gunnison country to see where the wild flowers grow. So please enjoy this week’s whimsical, short read, mostly from Count James Pourtales’ book, “Lessons Learned from Experience”. There’s a timely message contained in his writing for our time.

Colorado Springs was founded on the idea that it would be a World Class Destination and Count James Pourtales moved from Glumbowitz, Prussia to take advantage of the great economic opportunity he saw in this venture. Pourtales is the guy who founded the Broadmoor; 1st as a dairy farm and then when that didn’t work-out so well, a real estate development. Along the way he devised a scheme to build the original Broadmoor Lake to store and provide critically needed, scarce water to his new development, and to allay potential lot-buyer’s fears that the dike holding-back the water would fail releasing a torrential flood, he devised a further scheme to construct a World Class Casino on-top of the dike which served, “Oh, behave!” alcohol.

From Pourtales’ journal, ““It was my intention that the barroom should serve as a great attraction, for Colorado Springs is a temperance city. . .

He continues, “As is well known, certain states in North America have introduced what is called “prohibition”; that is, in such states, alcoholic beverages may not be sold openly and there are no taverns or saloons. A citizen is allowed to bring liquor in from other states only for his own use or he may – and this is in some cases made clear in the law – go to a drug store with a doctor’s prescription and buy alcoholic beverages or wine as medicine. (Hmmm . . . )

The prohibition movement is rather widespread over the whole of the United States and even has its own political party which always presents a candidate at the time of presidential elections in order to make propaganda for its own cause. Prohibitionists know that they can never get their candidate elected, and after proposing their candidate they usually make a compromise with either the democratic or republican candidate for president who in turn promises to support their platform. In the individual states, the legislature is able to introduce prohibition, and so it happens that actually several states in the west have enacted so-called “temperance laws”. In spite of the law, there is still drinking and it is often stated that there is more drinking in the temperance states than in the others where the individual can still order a drink legally. That this movement has gained such force is explained by the fact that many American families have been ruined by over-indulgence of the men.

We in Germany are also very fond of our drink – the ancient German used to lie on his bear skin and get drunk, but the modern German takes his drinks more slowly than the Yankee; he usually sits down in a tavern and drinks, be it schnaps or beer.

The American has other habits. The American barroom is furnished with a long table like a shop counter, which is set up along one side of the room and behind this stands the man who serves the drinks, the “bartender”, and here also the various drinks are kept. The American steps up to the counter and orders his drink and when he has swallowed it, he takes a 2nd and ad 3rd and leaves the shop – only to seek out another similar place at first opportunity and repeat the same rapid process. Usually several guests come into a bar together. Instead of sitting down in a comfortable fashion to converse while they drink one of them calls out, “Take the orders!” and the bartender then asks each one what he wants. The drinks are ordered and prepared by the bartender; the guests regard one another and say, “My regards” or “Hallo” or Here’s how” and empty the glasses at one swallow. If, for instance 4 men have come into the tavern together and one of them has ordered and the drink has hit-the-spot then the next one feels obliged to take his turn and he says to the bartender, “Take the orders!” and so it goes until each of the 4 has stood his turn. If one enters a tavern in a group, one expects as many drinks as there are people in the group. One can imagine that such a custom does not always bring good results and naturally a large share of income goes down the throat and the family suffers for it.

The women are very active in their efforts to check this habit. To drink at meal t time, as we do in Europe, is not the custom; the man drinks before meals and after meals, but during the meal ice water is usually served.

When the Colorado Springs Company formed their city they wished to have a place which would serve chiefly as a health resort for consumptives and those suffering from other ailments; so the stipulation was included in the statues that, whenever a title was granted, the “temperance clause” should be included as a restriction so that no alcoholic beverages could be sold within the original limits of the city. The subsequently elected city officials included this stipulation in the police regulations.

In Colorado Springs one could obtain alcoholic beverages only in drug stores with or without a prescription of a doctor. To procure a license to sell alcoholic beverages, the drug store proprietor had to pay at first $1,500 and later $1,000 yearly to the city. There are 10 or 12 such drug stores in Colorado Springs, which fact offers some proof that the temperance is not actually very widespread there. The efforts of the temperance people usually lead in my experience to hypocrisy, because the desire for drink is not done away with by forbidding it, especially if there are loopholes left. Drinking is done in secret and associates itself with false pretense and deceit.

Through the county commissioner, with whom I necessarily had to deal, I arranged so that I was allowed to install a bar in the Casino, for which privilege I paid the county $500 yearly. As might have been expected the news that a restaurant, which could serve alcoholic beverages and with the bar connected, was being built raised a storm of protest from the temperance followers and especially from the ministers of Colorado Springs. I was convinced that if the drinking could be well handled, the serving of drinks would be of greatest advantage to the Casino itself and to the land speculation.”

If we look to our past, we’ll find our future . . . .

Keep it real.

Sincerely, TJL Tim Leigh 719-337-9551 Tim@HoffLeigh.com

July 16, 2010

2010-07-20T10:30:00.002-06:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
July 16, 2010

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $102.33 (UP $0.05 from last week)
We are currently tracking 88 office buildings for sale.
This is 824,650 square feet, which represents a total market value of $84,383,536.

All Market Average Industrial Building Sale Price PSF = $89.17 (DOWN $0.82 from last week)
We are currently tracking 71 industrial buildings for sale.
This is 907,334 square feet, which represents a total market value of $80,903,406.

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/7.16.10%20Colorado%20Springs%20Business%20Journal%20Ad.pdf

Tim’s Market Report

“I met a girl who sang the blues and I asked her for some happy news, but she just smiled and turned away;
I went down to the sacred store where I’d heard the music years before, but the man there said the music wouldn’t play.

And in the streets the children screamed, the lovers cried and the poets dreamed;
But not a word was spoken, the Church bells were all broken.

And the three men I admired most, The Father, The Son and the Holy Ghost, they caught the last train for the coast.”
American Pie
Don McClain

OK. . . OK. . Some of you are economists but most aren’t and the following graphs are for those who aren’t. They’re designed to illustrate a very simple point - we’re traveling down the dirty, bumpy, washed-out road called too much debt, where the hot, dry wind sucks the air from your lungs and the swirling dust clouds your vision. And, if you merely consider the graphs and think about the world from 80,000 feet you’ll get the general idea. And no, it’s not a story of a man named Jed – that guy who “went looking for some food and found some bubbleing crude”, it’s a story of the global economy; our national economy; states, counties and city’s economies all enmired in too much debt.

The 1st graph shows US debt as a % of gross domestic product (that’s all the stuff we produce). When I was a kid, my mom always told me that if I’d consistently “tuck a buck a day away” I’d be fine. The 1st graph’s a picture of a country that hasn’t figured-out that simple idea and uless it changes its way, it will not be fine. Put simply, you can’t prosper with too much debt because you spend too much of your money paying somebody else.

You can have money or you can have things but you can’t have both (I know – that is, until your productive capacity exceeds your propensity to spend.) In this case, if the debt is too great you can have neither.

Let’s call the next graph “wishful thinking”. It’s a chart of something politicians wish could be, but frankly, cannot be. The US cannot borrow $15 trillion (that’s a $15 with 12 zeros behind it) over the next 10 years without going broke. Long before that, the bond market will rebel causing interest rates to rise and “the financial aftermath will make the last crisis seem like a cakewalk.”

And here’s some financial news to think about from around the world:

Ireland is in a financial depression;
The Baltic States & Hungary are in financial depressions;
Greece is right behind them;
Japan has been in a terrible financial mess for over a decade;
The entire global financial situation is in a precarious condition.

About ½ the pundits say we’re in a recovery while the other ½ expect a double dip; therefore, people don’t know what to expect. Uncertainty breeds anxiety; anxiety spawns indecision and indecision births stagnation. Now there’s a formula! OK, but check time; how is your business doing? How are you feeling about the next 12 to 24 to 36 months? Everywhere I go, folks tell me they’re merely “holding their own”. Not exactly a sterling endorsement.

And more financial headlines to think about, from around the country, from the past 60 days:

King County, WA city council members propose raising sales tax;
Santa Barbara, CA Sheriff wants new sales tax;
Maywood, CA plans to lay-off almost all of its employees;
Wilkes County, NC approves budget with 8% property tax increase;
Chautauqua County, NY county executive discusses plan to fix shortfall;
Kern County, CA to cut programs to close deficit;
Fresno, CA proposes 225 lay-offs to reduce deficit;
Wayne County, MI lays-off 700 workers;
Gainesville, FL to lay-off 37 employees in order to close city’s budget gap;
Alameda County, CA budget will eliminate jobs and services;
Duluth, GA raises taxes to eliminate shortfall;
Haber Springs, MI anticipates future budget shortfall;
St Louis, MO adding furlough days;
Lake County, FL lays-off 27;
Laguna Woods, CA is raising trash fees;
Maywood, CA will outsource all city functions;
Milton, WA eliminates water coolers in city buildings;
Poughkeepsie, NY sells more excess property;
CA, FL, MI and NY teetering on the verge of bankruptcy;
Winston-Salem, NC is considering a 4 day work week;
Morris County, NJ taxable property values are down $1.3 Billion;
Chattanooga, TN approves a $37 cent property tax increase;
Miami, FL expects more job cuts;
Tulare County, CA working to fix deficit;
El Centro, CA raises trash collection fees;
Dallas, TX city manager says 500 lay-offs forthcoming;
Lorraine County, OH closing offices to save money;
Northport, AL to lay-off employees;
Clark County, OH expects deficit next year;
Lee County, FL cutting 50 transportation jobs;
Jacksonville, FL mayor proposing pay cuts and tax hike;
Riverside, CA may eliminate 500 more jobs;
Osceola County, FL institutes 2 weeks furlough for employees;
Maricopa County, AZ raising property tax;
Contra Costs County, CA property values continue to decline.

USA Today reports that many state & local governments are planning layoffs hoping to close budget gaps. Mark Zandi, chief economist for Moody's Economy.com said "up to 400,000 workers could lose jobs in 2010 as states, counties and cities grapple with lower revenue and less federal funding”. And, “it is likely to worsen as now, states face a cumulative $140 billion budget gap for fiscal 2011”.

All of this is to say, we need to be sharply mindful of our resources; we need to be creative “out of the box thinkers” and realize the roads are not paved with cheese and it’s likely that the rebound is not going to be robust, but more likely a long-term slog. The world we knew left the station; the world we’re left-with is what it is; it’s our market reality; and the world we create will be made by informed, (hopefully, forward looking) wise decision.

And to that point, the city council has to make or not make a recommendation to keep approximately $600,000 they expect from excess tax collection. That shouldn’t even be a question; adversus solem ne loquitor. Of course they should keep the revenue. The 2nd immediate question shouldn’t be, however, “what cool thing can we spend it on?” rather, it should be “how can we save these funds for future emergencies?”

If we don’t keep the money it’ll be distributed by way of a very nominal residential utility-bill-refund. And as you may imagine, the mechanism for the refund is flawed. It goes to residential consumers only, so commercial utility consumers get screwed in the process, and frankly, the individual refund would be so nominal that the average recipient wouldn’t even notice it.

Let’s keep the money. Let’s don’t look for a pet project; let’s don’t ask the staff for their highest and best use; let’s don’t expect to drive $900,000 of value from a $600,000 bus; let’s keep the money in the emergency reserve fund. There will be another rainy day, and as my mother used to say, she never met a family that had too much in savings!

Keep it real; and who knows –

Sincerely,
TJL
Tim Leigh
719-337-9551
Tim@HoffLeigh.com

July 5th, 2010

2010-07-07T08:15:00.001-06:00

Hoff & Leigh’s Weekend Market Report

Hoff & Leigh, Inc.

Leasing, Sales, Management, Buyer Representation

4445 Northpark Drive, Suite 200

Colorado Springs, CO USA 80907

07.4.10

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $103.78 (NO CHANGE from last week)

We are currently tracking 88 office buildings for sale.

This is 797,093 square feet, which represents a total market value of $82,723,436.

All Market Average Industrial Building Sale Price PSF = $91.61 (DOWN $0.16 from last week)

We are currently tracking 75 industrial buildings for sale.

This is 937,422 square feet, which represents a total market value of $85,874,406.

To view our most recent Colorado Springs Business Journal Ad please click below

http://hoffleigh.com/Doc/6.25.10%20Colorado%20Springs%20Business%20Journal%20Ad.pdf

Tim’s Market Report

The Declaration of Independence was approved July 4, 1776. John Hancock signed first, saying, “The price on my head just doubled.” Franklin said, “We must hang together or most assuredly, we shall hang separately.” And John Adams concluded, “I am well aware of the toil and blood and treasure that it will cost to maintain this Declaration. . . Yet through all the gloom, I can see the rays of ravishing light and glory.”

FROM THE CAMPAIGN

In 1863 the Central Pacific Rail Road of California took-out toward the east and the Union Pacific Rail Road took-out toward the west. They met six years later on the high plains of Utah, in a desolate location known as at Promontory Summit where Leland Stanford drove a golden spike into the last rail to commemorate the event. Their accomplishment was widely acclaimed as the greatest American technological feat of the 19th century eclipsing the construction of the Erie Canal in the 1820’s and the crossing of the Panamanian Isthmus by rail in 1855. The miracle was not one of technology however, it was one of communication. They started; one from the left and one from the right; communicated, collaborated, resolved conflict, worked for the greater good, and together they achieved immortality.

Six months ago (February 2010), “The Tim Leigh Train” officially left the station with the crazy idea of linking disparate trains so the high plains at Colorado Springs would be a better place. At the time, Lon Matejczyk said “Leigh is a progressive and creative thinker . . . I appreciate Leigh’s candor and his straightforward approach” but, “I worry . . . that Leigh will become afraid of speaking his mind.” The train carried a couple of simple ideas; 1) that bridging insular bodies & building a sense of community was good and 2) if everyone with polarized world views would leave their prejudices & predilections at the door, they could work together for the common good.

And after six months, I’m convinced the ideas are foundational, albeit somewhat naïve and I’ve since learned how the game & business of politics is played, and I’ve felt the pull from that seductive mistress.

And she is a seductive mistress because, (if I had to boil it down into a few words), politics is a larger way of participating in life. And, at the end of the day, that’s what most thinking people want – to participate fully in this grand adventure. Politics is about leadership; it’s about harnessing the power of ideas & words and effecting your change. It’s about drawing from the past, working in the present and impacting the future. And being part of that creation is seductive.

When my train was first boarding I commented to a local wonk that politics in Colorado Springs seemed like Mayberry, RFD. (That’s where Barney Fife carried his unloaded 32 with 1 bullet in the queue, “just in case”). Politics in Colorado Springs seemed pretty benign. Chuckling, she suggested I may want to consider the South Side of Chicago as the better model.

And as the train began to pull-away from the station, I was quickly appointed to the Memorial Commission; and just as quickly asked to resign because of potential conflicts of interest. Politics was already at work; seemed like a couple of folks didn’t want me on the commission after all. The story was that I could have a conflict of interest because of my wife’s part-time nursing job at Memorial. It was presumed that I couldn’t make a decision on a $600,000,000 enterprise with integrity. Of course, it was an insult then, and still is.

Undaunted, I decided that if my candidacy was to be credible, I’d do something that I later learned, had never been previously attempted by anyone seeking a high elective position in Colorado Springs. I’d actually visit all the city enterprises and departments and learn how they work. (There’s a concept - become an engineer before you’re asked to be the conductor.)

One organization who embraced me early-on was CSU. They created a full curriculum which was to be a college equivalent course on how to run a public utility company “for dummies”. I set-out to meet them on a regular basis and was in pretty good shape until another of our “short sighted” elected officials decided that I was getting too much attention and told them to quit. “Bad, Bad Leroy Brown; baddest man in the whole damn town;”

And because of my willingness to learn, I received some nice accolades. One of our former city leaders told me that I could be the “1st best hope she’d seen in the city since she came”. Then she left. . . So much for that endorsement! Another said “Your energy, intelligence, quick-wit & demeanor really do have a lot of appeal . . . (and) for what it’s worth, I would love to see you leading our community.” And the mayor of another well-run competitor-city said “You’d be a great mayor!” Problem was, nobody wanted to go on record. And along the way, I had several people attempt to talk me down. “Are you crazy?” has been asked more than once.

*Along the way, I learned about the strong mayor form of government. And to answer everyone’s question – Yes, we need a full-time mayor! And we need a mayor with enough power to get things done. (If I was the strong mayor, the 1st thing I’d get done is that I’d fix my parking tickets; I get one almost every time I go downtown.) And, of course he needs to be paid – at least to the same level of the city manager. Consider that our city budget is around $2 Billion (rough numbers, all-in); and we want a part-time guy earning $500 bucks a month running that? Are we nuts?

*Along the way, I learned about Budgeting for Outcomes - a budgeting process that focuses on priorities, not costs. It puts the citizens and their priorities, (not the status quo), first. It emphasizes accountability, innovation and partnerships. Colorado Springs will have to embrace this budgeting style eventually and frankly, the sooner the better.

*Along the way, I met with the “interim” city manager (whose title should be changed to “city manager”) and who may be one of the brightest stars in Colorado Springs’ universe. Steve Cox just “flat-out” gets it. He’s in tune with the administration and how it works; he is in tune with the citizenry and while I don’t know how he does it, he always seems to “have time”. He’s the best candidate for strong mayor I’ve met. Only problem is, if he took the job, he’d have to take a 50% cut in pay.

*Along the way, I met with Police Chief Myers & Fire Chief Raider. Both guys are caring, thoughtful and mindful of their duties. They’re very able to run their organizations (if only we’d let them). What struck me is that we try to micro-manage their operations. My theory is, we interviewed & hired them and obviously like them. Now we need to get out of their way and let them do what they do. At the end of the day, we’ll be better served. If Chief Raider thinks 4 guys to a truck is the way to go, it likely is. If Chief Myers says he needs more cops on the street, then we need to figure-out how to fund that.

*Along the way, I met Nick Kittle whose salary increase (because of combining jobs & increasing responsibilities) caused an overall decrease in the city budget, and who was unfairly criticized in the press (essentially) for being a good employee. I met Curlie Matthews, who runs our IT department and who is open to explain (to any interested party) just how complex our IT system is and who says it can’t be run similarly with 11 employees who normally book reservations & schedule T-times.

*Along the way, I met citizen groups who would like to go back to their private enterprise jobs if they could only trust that the city is doing the best they can with what we’ve got. . . Hey fella’s! Here’s a news flash - they are, so you can. Do we need a watchdog group to oversee the overseer’s who are overseeing the overseer’s? Where does this lunacy end?

*Along the way, I met Cam McNair and Saleem Khattak who told me about capital improvements backlogs. In tight-budget-times, their story goes, capital improvements are postponed. But, they say, we’re at a tipping point. I saw their map depicting pot-holes (it looked like x-rays of my teeth when, as kids, we had the charge account at the Gullickson’s candy store); they explained the cost/benefit analysis of repairing streets vis-à-vis replacing them. I saw their diminishing budget and decreasing staff & revenue. I came-away impressed at how much they do with so little. (And, I was told how seldom folks at their end of the food chain see folks from the other end of the food chain and therefore, how little major decision makers understand the “on the ground” facts necessary for informed decisions.

*Along the way, I cleared my deck so I could reasonably date the mistress. I’ve quit boards and become a wolf-pack of one and when I complained to one of my early advocates, he told me, “Get used to being alone; people will feign friendship if they want something; and if they don’t get what they want from you, they’ll toss you aside like yesterdays’ Gazette”. And did I mention that several people asked, “Are you crazy?”

*Along the way, I’ve said that this next municipal election is extremely important; that it’ll change our governance for generations. I’ve warned that there are folks from other parts of the state who’d like to take control of our local government by salting their slate and taking majority control of the 7 newly elected council seats. And, I’ve been told that my writing in this regard was inspirational and I’ve been told that my writing in this regard was “the most cynical, sarcastic . . . piece of political crap that has been written in a long-time.” I have been discussed as a unifier and dismissed as a polarizer.

*Along the way, I’ve discussed Tim Leigh’s 2 truisms; 1) The journey of a thousand miles starts with a single step; and 2) Reasonably bright people given the same facts will reach similar conclusions, eventually.

1) We’ve been a city of commissions & studies; now we must become a city of doers. We’ve had a Charter Review Commission. We’ve had a Sustainable Funding Commission and now we have the Memorial Commission. Enough with the studies already! Smart people have provided guidance. The answers are the same every time. Let’s get the utilities guys their own governance; let’s get the hospital their own governance; let’s get the parks & arts their own governance – and let’s call for appropriate ROI from each. At some point, a journey must begin. Let’s take that single step.

2) Let’s widely and transparently disseminate the city’s budget information in an understandable yet detailed form so citizens can make educated decisions. (By the way, Al Gore invented a process that makes this possible.) When proposition 2 was floated, it was promoted as a way to fund a short-term budget crisis but, along the way, it morphed into a long-term budgeting solution. Did we have a crisis or a chronic, systemic problem? Reasonably bright people (us) can be counted-on to make good decisions when presented with facts. As Joe Friday said, “Just the facts, maam.”

Along the way, my personal vision of Colorado Springs moved from simple unification to a larger view; to a view that encompasses our becoming a “World Class Destination”. I’ve said that if we look to our past we’ll find our future. I’ve said that my vision is merely a restatement of what our founders intended. They settled Colorado Springs as a world class destination and it became one.

Along the way, I’ve learned that being a successful politician is a full-time job. (I already knew that being a successful Realtor is a full-time job). And when I launched the Tim Leigh train I had the misguided notion that I could do both (well) on a part-time basis. I’ve since learned that that is not possible. I’ve been told that I’m a very good Realtor/businessman and I think I’d be a very good mayor. The problem is, unless I want to lower my standard and become mediocre at both, I have to pick one. And at this juncture, I’m choosing to stick with what I know.

So, acknowledging passages that say something like “there’s a time & season for everything” and something about “serving 2 masters”, I’ve concluded that this is not the time for Tim. Truthfully, I’m not sure I know the person who can be exceptional at running a business and coincidentally running the 47th largest city in the United States. But, at this present moment, our exceptional city desperately needs that 1 exceptional person who can make a singular, full-time commitment.

When I announced my candidacy, I made 3 promises; 1) I’d conduct the symphony; 2) I’d be the Grand Marshall in a parade and 3) I’d learn to line-dance. Like most folks who make campaign promises, I’ve done none of them. I have been lucky enough to throw the 1st pitch for the Sky-Sox; slide down a fire pole and get a private ride-through the Homestake Pipeline. It’s been an incredibly entertaining six month journey of personal discovery.

Along the way, I’ve discovered that it’s likely I’ll make my best contribution to our community in some capacity other than as mayor. And who knows what that means? Maybe an at-large city council seat or a membership on another community service board - we’ll have to see. Until then, it is with a great deal of humility and respect that I formally announce my withdrawal as a candidate for mayor.

And with that same humility I’d like to thank everyone who supported my ideas and vision. Keep it real.

IT’S not TIME.

Sincerely, TJL Tim Leigh 719-337-9551 Tim@HoffLeigh.com

2010-06-30T10:11:00.001-06:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
06.25.10

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $103.78 (UP $1.27 from last week)
We are currently tracking 88 office buildings for sale.
This is 797,093 square feet, which represents a total market value of $82,723,436.

All Market Average Industrial Building Sale Price PSF = $91.77 (DOWN $1.00 from last week)
We are currently tracking 76 industrial buildings for sale.
This is 939,582 square feet, which represents a total market value of $86,223,406.

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/6.25.10%20Colorado%20Springs%20Business%20Journal%20Ad.pdf

Tim’s Market Report

Here are a couple of articles on the Medical Marijuana issue. I hope they provide some light in a murky tunnel.

FROM BOULDER – “Anyone who thinks it would be easy to get rich selling marijuana in a state where it’s legal should spend an hour with Ravi Respeto, manager of The Farmacy, an upscale dispensary here that offers Strawberry Haze, Hawaiian Skunk and other strains of Cannabis sativa at up to $16 a gram. She will “harsh-your-mellow.”

“No M.B.A. program could have prepared me for this experience,” she says, wearing a cream-colored smock made of hemp. “People have this misconception that you just jump in and start making money hand over fist, and that’s not the case.”

Since this place opened in January, it’s been one nerve-fraying problem after another. Pot growers, used to cash-only transactions, are shocked to be paid with checks and asked for receipts. And there are a lot of unhappy surprises, like one not long ago when The Farmacy learned that its line of pot-infused beverages could not be sold in Denver. Officials there decided that any marijuana-tinged consumables had to be produced in a kitchen in the city. “You’d never see a law that says, ‘If you want to sell Nike shoes in San Francisco, the shoes have to be made in San Francisco,’ ” says Ms. Respeto, sitting in her tiny office on the 2nd floor of The Farmacy. “But in this industry you get stuff like that all the time.”

One of the odder experiments in the recent history of American capitalism is unfolding here in the Rockies; the country’s first attempt at fully regulating, licensing & taxing a for-profit marijuana trade. In California, medical marijuana dispensary owners work in nonprofit collectives, but the cannabis pioneers of Colorado are free to pocket as much as they can — as long as they stay within the rules. The catch is that there are a ton of rules and more are coming in the next few months.

The authorities here were initially caught off guard when dispensary mania began last year after President Obama announced that federal law enforcement officials wouldn’t trouble users and suppliers as long as they complied with state law (as long as they grow less than 99 plants). In Colorado, where a constitutional amendment legalizing medical marijuana was passed in 2000, hundreds of dispensaries popped up and a startling number of residents turned out to be in “severe pain,” (the most popular of 8 conditions that can be treated legally with the once-demonized weed).

Over 100,000 Coloradans now have medical marijuana certificates, which are essentially prescriptions and for months new enrollees have signed up at a rate of roughly 1,000 a day. As supply met demand, politicians decided that a body of regulations was overdue. The state’s Department of Revenue has spent months conceiving rules for this new industry, ending the reefer-madness phase here in favor of buzz-killing specifics about cultivation, distribution, storage and every other part of the business.

Whether and how this works will be carefully watched far beyond Colorado. The rules here could be a blueprint for the 13 states, as well as the District of Columbia, that have medical marijuana laws. That is particularly the case in Rhode Island, New Jersey, the District of Columbia and Maine, which are poised to roll out programs of their own.

Americans spend nearly $25 billion a year on marijuana which gives some idea of the popularity of this drug. Eventually, we will be talking about a sizable sum of tax revenue from its sales as medicine, not to mention private investment and employment. A spokesman for the National Organization for the Reform of Marijuana Laws says hedge fund investors and an assortment of financial service firms are starting to call around to sniff out opportunities.

“We’re past the days when people call here to ask if marijuana will give men breasts,” says Allen St. Pierre, the executive director of NORML. “Now, the calls are from angel investors, or REITs — people who are looking for ways to invest or offer their services.”

What happens when pot goes legit? How does the government establish rules that allow the industry to flourish, but not run rampant? And given that this is all about medicine, what about doctors, some of whom have turned medical marijuana consultations into a highly lucrative specialty? These and dozens of other questions are being answered in cities like Boulder, where the number of dispensaries is larger than the number of Starbuck’s & liquor stores combined.”

FROM SAN FRANCISCO – “These are heady times for advocates of legalized marijuana in California — and only in small part because of the newly relaxed approach of the federal government toward medical marijuana.Skip to next paragraph

State lawmakers are holding (held) a hearing on Wednesday on the effects of a bill that would legalize, tax and regulate the drug — in what would be the first such law in the United States. Tax officials estimate the legislation could bring the struggling state about $1.4 billion a year, and though the bill’s fate in the Legislature is uncertain, Gov. Arnold Schwarzenegger has indicated he would be open to a “robust debate” on the issue.

California voters are also taking up legalization. Three separate initiatives are being circulated for signatures to appear on the ballot next year (2011), all of which would permit adults to possess marijuana for personal use and allow local governments to tax it. Even opponents of legalization suggest that an initiative is likely to qualify for a statewide vote. “All of us in the movement have had the feeling that we’ve been running into the wind for years,” said James Gray, a retired judge in Orange County who has been outspoken in support of legalization. “Now we sense we are running with the wind.”

Proponents of the leading ballot initiative have collected nearly 300,000 signatures since late September, easily on pace to qualify for the November 2010 general election. Richard Lee, a longtime marijuana activist who is behind the measure, says he has raised nearly $1 million to hire professionals to assist volunteers in gathering the signatures. “Voters are ripping the petitions out of our hands,” Mr. Lee said.

That said, the bids to legalize marijuana are opposed by law enforcement groups across the state and, if successful, would undoubtedly set up a legal showdown with the federal government, which classifies marijuana as an illegal drug.
California was the first state to legalize marijuana for medical purposes, in 1996, but court after court - including the United States Supreme Court - has ruled that the federal government can continue to enforce its ban. Only this month, with the Department of Justice announcement that it would not prosecute users and providers of medical marijuana who obey state law, has that threat subsided.

But federal authorities have also made it clear that their tolerance stops at recreational use. In a memorandum on October 19, 2009 outlining the medical marijuana guidelines, Deputy Attorney General David Ogden said marijuana was “a dangerous drug, and the illegal distribution and sale of marijuana is a serious crime,” adding that “no state can authorize violations of federal law.”

Still, Mr. Lee anticipates spending up to $20 million on a campaign to win passage of his ballot measure in California, raising some of it from the hundreds of already legal medical marijuana dispensaries in Los Angeles, which have been recently fighting efforts by Los Angeles city officials to tighten restrictions on their operations. “It’s a $2 billion industry,” Mr. Lee said of the medical marijuana sales.

Opponents said they are also preparing for a battle next year. “I fully expect they will qualify,” said John Lovell, a Sacramento lobbyist for several groups of California law enforcement officials that oppose legalization. Any vote would take place in a state where attitudes toward marijuana border on the schizophrenic. Last year, the state made some 78,500 arrests on felony and misdemeanors related to the drug, up from about 74,000 in 2007, according to the California attorney general. Seizures of illegal marijuana plants, often grown by Mexican gangs on public lands in forests and parks, hit an all-time high in 2009, and last week, federal authorities announced a series of arrests in the state’s Central Valley, where homes have been converted into “indoor grows.”

At the same time, however, there are also pockets of California where marijuana can seem practically legal already. At least seven California cities have formally declared marijuana a low priority for law enforcement, with ballot measures or legislative actions. In Los Angeles, some 800 to 1,000 dispensaries of medical marijuana are in business, officials say, complete with consultants offering public relations services and “canna-business management.”

Assemblyman Tom Ammiano, a San Francisco Democrat and author of the legalization bill, said momentum for legalization has built in recent years, especially as the state’s finances have remained sour. “A lot of people that were initially resistant or even ridiculed it have come aboard,” Mr. Ammiano said. In Oakland, which passed a tax on medical cannabis sales in July, several people who signed a petition backing Mr. Lee’s initiative said they were motivated in part by the cost of imprisoning drug offenders and the toll of drug-related violence in Mexico. “Personally I don’t see a way of getting it under control other than legalizing it and taxing it,” said Jim Quinn, 60, a production manager. “We’ve got to get it out of the hands of criminals both domestic and international.”

Mr. Lovell, the law enforcement lobbyist, however, said those arguments paled in comparison to the potential pitfalls of legalization, including people driving under the influence. He also questioned how much net revenue a tax like Mr. Ammiano is proposing would actually raise. “We get revenue from alcohol,” he said. “But there’s way more in social costs than we retain in revenues.”

The recent history of voter-approved drug reform law in California is not encouraging for supporters of legalization. Last November, voters rejected a proposition that would have increased spending for drug treatment programs and loosened parole and prison requirements for drug offenders. None of which seems to faze Mr. Lee, 47, a former roadie who founded Oaksterdam University, a medical marijuana trade school in Oakland, in 2007. Mr. Lee says he plans to use the Internet to raise money, as well as tapping out-of state sources for campaign money.

More than anything, however, Mr. Lee said he was banking on a basic shift in people’s attitudes toward the drug.
“For a lot of people,” he said, “it’s just another brand of beer.”

FROM THE CAMPAIGN

Q: What?
A: When I started my run for mayor many, many months ago, I was told that I’d have to become a new person in the marketplace; that I’d have to change my perception of myself, and I’d have to change other people’s perception of me. And I can report, that whether I’m elected or not, that change is occurring.

Q: Can you expand?
A: Sure, let me expand with a story.

Just before Christmas last year, while attending my wife’s staff Christmas party, I was approached by one of her co-workers. She asked if she could talk to me for a minute. She quietly confessed that she was terribly afraid for the future; the uncertainty about her retirement, the state of the general economy, the state of the world. It had gotten to the point that she was losing sleep. Was there anything I could say that could comfort her?

I put my arm around her, and looking into her eyes, I told her, “You know, I don’t have any great answer right now, but I can tell you that there are a lot of really smart people working on solutions.” Then I told her, “At the end of the day, it’s going to be OK.” (And it is!)

Then, she looked up at me and said, “Thank you. Coming from someone like you, that makes me feel a lot better.”

Now, I don’t tell this story to set myself on a pedestal, but to relate a change. I’ve grown from flamboyant Realtor to someone who truly cares about city issues; who is willing to study them and make “right” decisions. The additional point is that I’ve learned that there are something like 400,000 folks scattered across the city who rely us (all community leaders) to make that right decision; an informed decision; a wise decision. Not a decision based on media hype and hyperbole.

Q: What have you been doing on the campaign trail?
A: On Saturday, I went to the Team Party. I took my daughter Shannon, and in addition to meeting a lot of new friends who are very passionate about our country, we got one of the best hot dogs we’ve had I a long time. The only problem was, it was not totally filling, so we had to run to The Home Depot for another – and then to Walgreens for some antacid!

Q: Any final thoughts?
A: Yes; I’ve been thinking about Allen Greenberg’s CSBJ column from Friday. He says “we need a strong voice, a reassuring presence, a commanding “parent” if you will, someone who can take the reins and set things right.” He says it couldn’t hurt to “have a charismatic leader who can promote all that’s right about this town.” And he finished with, “We need to find the courage to change the city’s charter and then find a mayor who’ll help us out of this funk.”

I’m not sure Allen’s candidate is hanging out waiting to be picked; I think he’s growing on a vine and with the right encouragement and nurturing he’ll grow into the job.

IT’S TIME.

Sincerely, TJL Tim Leigh 719-337-9551 Tim@HoffLeigh.com

June 18, 2010

2010-06-22T09:41:00.002-06:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
June 18, 2010

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $102.51 (DOWN $0.52 from last week)
We are currently tracking 87 office buildings for sale.
This is 789,356 square feet, which represents a total market value of $80,914,436.

All Market Average Industrial Building Sale Price PSF = $92.77 (DOWN $0.43 from last week)
We are currently tracking 74 industrial buildings for sale.
This is 903,582 square feet, which represents a total market value of $83,828,406.

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/6.18.10.pdf

Tim’s Market Report

FROM THE CAMPAIGN:

Q: Any news from the campaign?

A: Yes, – a 2nd North Dakotan threw his hat into the fray last week, which I guess proves that folks from North Dakota must either be gluttons for punishment or not that bright. Dave Munger announced his candidacy and with an eye for irony, it should be noted that Dave graduated from my high school (Grand Forks Central) 10 years ahead of me. So, apparently, the daisy walk’s over; the challenging volley has been fired, and unlike the 1st real-shot of the Revolutionary war which was a misfire by an outraged civilian colonist, (when his musket misfired - it was called a flash-in-the-pan), Mr. Munger will be formidable challenger.

Q: Could you expand?

A: Yes. I’m a conservative republican. Mr. Munger’s (who is a good guy) is a self admitted “left leaning” democrat. I saw him at an EDC function last week, and after we congratulated and patted each other on the back, we agreed that he “leans left” and I “lean right” and we therefore established the basic differences in our candidacies and philosophy to government. I follow the grand Regan tradition that believes less government is more; folks who lean left generally believe more government is less. People who govern from the left generally believe folks need a big brother and frankly, I believe that left to their own devices, most folks can take care of themselves. And while we are called by charter to run a non-partisan election, this is shaping up to be anything but.

Q: From what I read in the Gazette, Mr. Munger has a lot of support for his candidacy; care to comment?

A: Yes, Jan Martin told me, that while she thinks I have a lot of enthusiasm, she’ll support the Munger candidacy because of his proven track record of “being on a lot of committees”. I’ve also been told that Mary Lou Makepeace supports him; she’s the Executive Director of the GIL Foundation and I understand the CONO organizations support him; and, I would guess that he’ll get the support of the democrat machine.

Q: Come-on, aren’t you being a little bit cynical when you use words like “machine” in Colorado?

A: Whose being naïve. Look, we will turn over 7 council seats in the next election. In fact, I could argue that the next election may be one of the most important municipal elections we’ll have in the next 50 years. Don’t delude yourself by thinking that the state level democrat machine is not drooling at the possibility of coming into our city and taking control. And if you want to see what that looks like, call some of your friends who own real estate or run a business in Boulder and ask about intrusive municipal regulation that drive-up the cost of ownership and kill free market incentives.

Q: You’re all fired up today. What’s up?

A: Look, we’ve been engaged in a battle for the very soul of our nation; we spend more than we earn; we’ve become so politically correct that we’ve lost our common sense; we’ve become a band of moral relativists and I’m afraid that that national disease is beginning to infect us.

Here’s a couple of anecdotes that could help you get your arms around what I’m talking about; last month, there were 450,000 new jobs created in the national economy. It takes 150,000 new jobs each month just to keep up with demand. Unfortunately, of those 450,000 new jobs, 400,000 were new government jobs and many think that is OK. You see, there are 2 philosophies - one says that it’s OK for the government to be the employer of last resort; the other says jobs must be created by the private sector. I ascribe to the 2nd philosophy.

And, if diminishing Medicare reimbursements for docs wasn’t discouraging enough (for the uninitiated, that’s a pay-cut), here’s a little more fuel for the fire; Karen Harbert (US Chamber of Commerce director for 21st Century Energy Policy) said, starting January 1, 2011, each business entity will have to provide a carbon footprint report; and I’ve been told that if you want to sell your house you’ll have to provide proof that it meets certain energy efficiency standards.

Q: Wow!

A: I know. It takes your breath away if you think about the implications.

Q: I’ll bet you had some interesting meetings last week. Care to tell me about them?

A: Sure. Actually, I’ve been meeting with civic leaders for many months as part of my mission to discover how we’re connected and how we can parlay that connectivity to promoting the region.

I met with Eric Phillips. Eric is working on a program to take-over the community centers that were to be shut-down because of budget limitations. He has a program in discussion where impacted neighborhoods are working together as “newly inspired communities” to keep their respective community centers open. And I think that’s terrific.

Look, budgets have moral implications. In fat-budget situations, where we spend & subsidize, folks lose their incentive to care for themselves or their neighbors. And so you don’t brand me as hard-hearted, I realize we need to take care of those who truly can’t care for themselves. But, I guarantee that those folks working with Eric will have more pride in their centers because “they are theirs” and not something provided by government. And, by the way, that is one of the ways we can start re-building a sense of community - by involving folks at the grassroots level in solving their problems and getting rid of their reliance on government.

I also met with Brady Boyd, the Senior Pastor at New Life Church. Brady is very interested in helping create community wherever he can. In fact, he told me a story that is somewhat upsetting; said he tried to connect his parishioners with the parks department. He said his volunteers could take over maintaining several area parks “for free” and they would be dependable and show up every Saturday. That sounds like a great idea to me, but apparently the parks folks couldn’t get their arms around that scale of volunteerism and the idea died on the vine.

And I met with the folks at the Henderson and Climax mines. The Henderson & Climax mining operations are subsidiary operations of McMoRan Company, (the world’s largest publicly traded copper company) and are located near the top of the continental divide; Henderson near Empire and Climax near Leadville.

McMoRan mines geographically diverse, long-lived reserves of copper, gold and molybdenum. Their stock symbol is FCX and in case you’re curious, it could be a good play at $65 per share with its $.60 dividend. The story is that we’re about to see another bull-run in commodities and this would be an easy way to play that game.

I toured the mines and processing plants to learn about their financial impact on the state and potentially, our city. I learned about their very significant power consumption. (The Henderson is the 2nd largest consumer of power behind the Pueblo Iron Mill); and that they are preparing for the future with expansion at the Climax mine. (And for trivia buffs – the site of the 1st ski lift in Colorado was at the Climax Mine Ski Area!)

As a claustrophobic, the tour caused tremendous personal anxiety. Our tour took us down Shaft number 2 for about 7 minutes – that would be straight down into a dark hole, in a metal cage about the size of an average executive office, to about 5,000 feet below the mountaintop, into the mine where it felt like the main source of light was our hard-hat-lamp. For the non-initiated, it was pretty dang scary.

My purpose was fact finding, meeting & greeting, building relationships and investigating opportunities where we could possibly ride their international business coat-tails, searching for opportunities. My biggest take-away was that their team operated like a “TEAM”. They have a real passion for what they do; they understand their role in the global marketplace, they have fun, are committed to the environment and safety, and are very conscious of their bottom line. Wow, I thought; if we could recharge our city’s bureaucratic attitude to be like that, we’d be in great shape! Hmm . . . There’s that leadership thing, again.

Q: Do you have any parting comments?

A: Yes. These would be the same comments I made last week, which I’m reiterating because they’re so important. I’ve concluded that our community’s conversation has been miscast. Beating the embedded bureaucracy is beating a dead horse and it’s beating ourselves - “we are them”. We need to recapture our can-do inner-arrogance; that we can accomplish great things; we need to recognize our community assets & promote them; we need to realize that it’s “us vs. them” and the “us” is the entire city, (constituents & bureaucracy, working as partners), and the “them” is the global marketplace. We have to make this a city worthy of consideration; a World Class Destination.

When we get the conversation right, we’ll realize that we have no limiting factors; there’ll be no mountain we can’t climb; no river we can’t cross; no gap we can’t bridge . . .

IT’S TIME.

Sincerely,

TJL

Tim Leigh

719-337-9551

Tim@HoffLeigh.com

June 11, 2010

2010-06-14T12:29:00.003-06:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
June 11, 2010

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $103.03 (UP $1.46 from last week)
We are currently tracking 86 office buildings for sale.
This is 779,756 square feet, which represents a total market value of $80,339,436.

All Market Average Industrial Building Sale Price PSF = $93.20 (UP $0.38 from last week)
We are currently tracking 71 industrial buildings for sale.
This is 880,258 square feet, which represents a total market value of $82,044,406.

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/5.28.10.pdf

Tim’s Market Report

“My best guess is that we’ll have a continued recovery, but it won’t feel terrific. Even though technically we’ll be in recovery and the economy will be growing, unemployment will still be high for a while and that means that a lot of people will be under financial stress.”
Ben Bernanke
Last week

Everything I’m reading these days says that we should expect very low GDP growth at least until 2014. I don’t know how the smart guys can dial into a specific date like that, but many writers are saying the same thing. So I’ll chime-in, not because I have a crystal ball, but because that seems like the smart-money bet. Personally, I’m planning on a slowly growing economy with a possible serious disruption to that growth if Mayan predictions come true and the world ends in October, 2012. Otherwise, from what I’m reading you can plan on GDP growth in a range of 1.25% to 1.95%. (That’s as opposed to a historical norm (past 68 years) of around 3.82%, and by the way, an average annual US GDP growth rate during the Great Depression (1930 – 1939) of 1.32% per year.

Then, when you add increased volatility in the markets, (see for example, a few weeks ago when the DOW dumped nearly 1,000 points “but rebounded” so the total daily loss was “only” around 400 points), we have a greater chance of multiple V-shaped recessions. Multiple recessions will cause business to periodically pull-in their oars, which will create systemic, higher rates of joblessness, which will chronically drag the economy. The borrow, borrow, borrow, spend, spend, spend party is over. For the foreseeable future, we’ll spend less, pay-off debt and save more. And while that sounds good in theory, it’s not the correct formula for rebuilding a consumer oriented economy, which by definition means you have to consume. So, as George Bush reportedly said, “Do your patriotic duty – go shopping!”

And, as you know, I’ve been preaching that much of our commercial real estate inventory is overvalued and until prices come into alignment with the market, we’ll continue to experience sluggish commercial real estate sales. (The average listing price for a commercial office building today is $103.03 psf. Our price-line has been trending downwardly over the past 24 months from a high of $111.00.) I expect to see continued downward pressure because of “lack of demand”.

Lack of demand is caused by general market conditions, but as an added insult in our market, our office building inventory is outdated; much of it is functionally obsolete and in need of significant repair. The assessor says the average office building’s worth $70.14 “as is”. If you subtract the cost of renovation, say, $25 psf, the average is more likely around $45 - $50 psf. Don’t believe me? Ask any old-timer if he remembers the 1980’s recession when we were buying office buildings for $10 psf. I guarantee if the market was priced at $50 psf we’d see an immediate uptick in sales, followed by a robust remodel business and an increase in overall activity, which is all good; but that darn demand; until we get more jobs. . .

Anecdotally, last week I met a guy who wants to sell his 5,000 sf warehouse. He bought the building in 1986 which was when Colorado Springs was the foreclosure capitol of America. He paid $150,000 and his payment was $1,500 per month. Without the benefit of this prior knowledge, he asked me to value his building. I blindly told him as an investment; $150,000 ($30 psf) if he’d finance it with no money down and carry the note at $1,000 per month. I calculated, based on the building’s expected rental income and operating costs, accounting for a very narrow profit, that’s all the property could support. Of course I hurt his feelings. So, let’s see; he bought in ‘86. It’s now 2010. That’s 24 years of ownership with no increase in value and a loss in expected monthly rental income. Hmm . . . How’s this supposed to work again?

So here’s the short course; when the economy’s flat, there’s less demand for commercial buildings. If there’s less demand, building owners have to move aggressively to capture tenants (usually cannibalizing from their neighbor’s building) so they drop their lease rates. When lease rates drop, building’s income declines and corresponding values decline. When the value of one building decreases, it negatively impacts similar buildings in the neighborhood which (then) also experience decreasing values. It’s like a campy horror movie where some guy named Freddy jumps out of a sock of hay with a dull chain saw and starts to cut-away at your limbs ever so slowly until you finally bleed to death. And until we can increase demand we’ll continue to be mired in the slog.

FROM THE CAMPAIGN
Q: Are you still running for Mayor
A: Yes.

Q: Why are you running for mayor?
A: Because I’m about to become a grandfather and I care about the environment that my kids & grandkids will inherit and I believe Churchill, who said, “you make a life by what you give.”

Q: Could you expand?
A: Sure; Colorado Springs is at a tipping point. And depending on the next election, and depending on the leadership skills of our next crop of leaders, we could become a lonely single-wide mobile home sitting on the eastern edge of El Paso County, with 3-foot tall prairie grass blowing in the hot, dry, dusty wind, where the only sound you hear is the sound of an aluminum door with a broken window, trying to clap shut, wham, wham, wham, – or we could become that cherished World Class Destination that I’ve been preaching about which, by the way, was what our founders envisioned.

Q: What is the biggest issue facing the city right now?
A: We have a crisis of confidence in our elected officials and the embedded bureaucracy. That’s evidenced by the fact that there are very well intended (multiple) groups who fashion themselves as “private oversight commissions” who are trying to watchdog local government and make sure it’s not wasting our resources. And, I’ll bet that every ad hoc overseer wishes he had enough confidence in our local government to know, that left to its own devices, it would run efficiently. Look, people are frustrated because our parks aren’t getting water or trash cans; our streets have ever-increasing pot holes and we’ve turned-out the lights.

Q: You continue to predict slow growth in the economy. What impact do you think that will have on the city budget?
A: First the good news; I heard the budget gap for this next budget cycle has been (mostly) filled and that we should have enough revenue to cover (most) of our called-for costs. That’s huge for Colorado Springs, because just a few months ago, the forecast was for a $29,000,000 million shortfall. And I think a pat on the back should be extended to the city’s financial managers who creatively discovered ways to cut & balance our budget. We have beaten these folks so badly over the past few years that it now seems incumbent on us to congratulate them when they get it right.

All governmental bodies will experience unprecedented financial stress for the foreseeable future. This means we have to be significantly more judicious with our resources. I’ll bet I meet at least 1 person every week who demands that all city employees take an “across the board” pay-cut. And while we need to be judicial, that’s not likely to happen, and while “it’s good conversation to stir the pot”, that’s about all it does. The reality is, most city departments have cut staff and budgets significantly and are doing the best they can to deliver the services we’ve demanded in the past; with operative words being “we’ve demanded” and “in the past”.

Now, “today”, we’re at a point where we have to engage in a higher conversation about expectations. What services do we expect from local government in a diminishing revenue environment? We can’t expect a full-smorgasbord. We can’t naturally fund the green-beans and spinach and the chocolate pudding without being more business-like and very entrepreneurial. (And by the way, it’s not the role of government to provide chocolate pudding.) The way we used to govern has changed; the way we used to collect revenue and spend is a bus that left the station. Now we need to look forward, creating new models; everything from public/private partnerships to budgeting for outcomes. Everything has to be on-the-table and up-for-grabs. Kennedy said “change is the law of life. And those who look only to the past or the present are certain to miss the future.” We need to put our eyes squarely on the future.

Q: Do you have any parting comments?
A: Yes; I’ve concluded that the community conversation has been miscast. Beating the embedded bureaucracy is beating a dead horse and it’s beating ourselves - “we are them”. We need to recapture our can-do inner-arrogance; that we can accomplish great things; we need to recognize our community assets and promote them; we need to realize that it’s “us vs. them” and the “us” is the entire city, (constituents and bureaucracy, (the aggregate), working as partners, and the “them” is the global economy. We have to make this a city worthy of consideration; a World Class Destination.

When we get the conversation right, we’ll realize that we have no limiting factors; there’ll be no mountain we can’t climb; no river we can’t cross; no gap we can’t bridge. . . I’m just saying. IT’S TIME.

Sincerely,

TJL

Tim Leigh

719-337-9551

Tim@HoffLeigh.com

June 4, 2010

2010-06-10T23:04:00.000-06:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
June 4, 2010

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $101.57 (DOWN $0.42 from last week)
We are currently tracking 88 office buildings for sale.
This is 823,462 square feet, which represents a total market value of $83,639,436.

All Market Average Industrial Building Sale Price PSF = $92.82 (DOWN $3.01 from last week)
We are currently tracking 72 industrial buildings for sale.
This is 893,013 square feet, which represents a total market value of $82,886,406.

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/5.21.10.pdf

Tim’s Market Report

“If I said what’s on my mind, you’d turn and walk away, disappearing way-back in your dreams.
It’s so hard to be unkind, so easy just to say, that everything is just the way it seems.”
Boston

I had the change to pick a John last night. And with no disrespect inferred to the one, I chose the other – the hero. Captain John Lee (USA) returned from Afghanistan about a week ago so I got to spend a few minutes with him at dinner. We talked about the war; the purpose of the war and his emotional state after 2 deployments (1 to Iraq and the more recent deployment to Afghanistan).

He said returning to Colorado Springs was a surreal experience. Their flight lifted-off across the globe where killing was the order of the day, returning to a bus ride in rush hour traffic in homogenous Colorado Springs. He said he’s feeling pretty good and that he’s looking forward to traveling around his own backyard (that would be the intermountain area) before his next deployment; said he might volunteer for Korea, although he claims he doesn’t really like the smell or taste of kimchi.

And the other John? Of course I support John Suthers for Attorney General and recommend you go to his web site and make a contribution to help him with his reelection. He’s a reasonable son-of-our-city with a proven track record of making common sense decisions. Now there’s an idea; common sense in government. I’m just saying . . .

Sincerely,

TJL

Tim Leigh

719-337-9551

Tim@HoffLeigh.com

June 1, 2010

2010-06-10T19:52:00.003-06:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
June 1, 2010

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $101.99 (UP $1.65 from last week)
We are currently tracking 84 office buildings for sale.
This is 772,819 square feet, which represents a total market value of $77,542,314.

All Market Average Industrial Building Sale Price PSF = $95.83 (DOWN $2.52 from last week)
We are currently tracking 70 industrial buildings for sale.
This is 877,378 square feet, which represents a total market value of $81,869,406.

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/5.28.10.pdf

Tim’s Market Report

Daniel Borsten, the former Librarian of Congress wisely said that “trying to plan for the future without a sense of the past is like trying to plant cut flowers.”

And one of our advantages as a community is that we know our past; we know our history and we know our heritage. In fact, we know our founders and their intention. We know 1871. We know General Palmer’s intention was the creation of a high-quality resort community. It was quickly nicknamed “Little London” because of the many English tourists who came. We know 1873. We know when the Antler’s Hotel opened it welcomed US and international travelers and health-savvy individuals seeking the high altitude and dry climate. We know Dr. Bell; Irving Howbert; Hagerman; Simmons; Count Portales; Stratton, Penrose & Tutt. In fact, if we look to our history we can find our future. And while it’s important to recall our founders and their successors as immortal, it’s just as important to recall them as mortal because as visionary as they were, they were just as flawed and imperfect as we are. They were merely stirped in time and did the best they could with what they had.

Our founders knew their “Colorado Springs” experiment was an unfulfilled promise and that our work would never be complete. They knew we’d be called-on to make continuous improvements, and that there would be never-ending flaws to correct, unfinished business to attend to, adjustments necessary to keep-up with the torrid pace of growth and change and opportunity, and that the job would never be complete. They were visionary and now that’s our call.

“Those brave, high minded people of earlier times gave us stars to steer by . . . and from them, in our own dangerous and promising present, we can take heart, (because) blessed we are and duty bound to continue the great cause . . . in their spirit and in their memory and for those who are to carry-on next in their turn. There is still much work to be done; still much to learn. And, on we go. . .”

Dave is our really bright analyst. One of Dave’s claims to fame is, at one time he owned the largest building in the state of Montana – so we know he has some experience! His other claim to fame is his infamous statement, “I’ve been rich and I’ve been poor and being rich is a whole lot better!” Now, Dave’s using his experience to help us navigate choppy waters by providing us with timely market data so we can make intelligent business decisions.

This week, Dave reports the office & industrial markets are still (significantly) over-valued. He says the office market is $23,759,325 overvalued and the industrial market is $29,824,042 overvalued. Furthermore, he says the average asking price for an office building is $100.34 psf where the assessor says it should be $69.59 psf; and he says the average asking price for an industrial building is $93.31 psf where it should be $59.32 psf. There is a moral; either you have the only property in the market that’s worth what you think it’s worth, (ah, congratulations – I’m sure you do!), or you’re going to have to drop-your-price and come into alignment with Mr. Market. Ah, yes, that wily Mr. Market. You know him. He’s kind of like Snidely Whiplash from the Rocky & Bull Winkle cartoon. He’ll lay you on the track, bind you tightly and let the train run-you-over! And trust me; there’s no love in River City and Dudley Doright’s retired.

And the interesting thing about real estate investors is the optimism. We never want to recognize a loss. Unlike the stock market where value’s immediately recognized, our world’s a surreal episode from the Twilight Zone; our world’s like a slow moving freight train, cars slowly crashing one-into-another, crumbling agonizingly slowly, until pushed by inertia from the last car, we fall off the cliff.

So, Mr. Buyer came into see me a couple of weeks ago. His story was that he proudly purchased a small office building in the Lehman Drive area from Mr. Seller who financed the sale. It was something like a 6,000 sf building for $650,000. At the time, it seemed like a great idea. At $100 psf, the price was in the sweet spot. Mr. Buyer was going to operate his business from the building and have a couple of tenants help pay the mortgage. In theory, over time, Mr. Buyer would pay-down the debt and live off the fat of subsequent tenants! At least that was his story and it was a damn good story at the time. Mr. Seller (aka Mr. Note Holder) thought he had hit a home run. He moved south, comfortable that his income was secure and was “there” for his retirement. At least that was his story. Makes me think of another story where Cinderella meets Alice in Wonderland.

Unfortunately, something happened on the way to the Forum. The market tanked; nobody wanted Mr. Buyer’s stuff; he couldn’t pay the mortgage and his freight train crashed into itself. Mr. Buyer had come to me hoping I could show him how to grow hair on his bald spot. And that’s when the Queen told Alice, “Why, sometimes, I’ve believed as many as six impossible things before breakfast!” I told him that he needed to have a frank discussion with Mr. Seller. Their relationship had impossibly changed; they were no longer Buyer/Seller or Borrower/Lender; they were partners.

Then Mr. Seller came to see me. I told him the same thing - partner. He didn’t like my advice and he didn’t like my price. He subsequently listed his property for sale with Brand X. Good luck with that. Hey, here’s a news flash! Mr. Market’s not to be trifled with and as I used to tell my Coronado High School hockey guys, “Sometimes you can fool Mama and sometimes you can fool Papa, but you can never fool the man in the mirror.” Real estate prices not at the market are merely entertainment.

From the Campaign: I have been spending the weekend at Territory Days meeting folks (well, actually, “I’ve seen green alligators and long-necked geese, some humpty backed camels and some chimpanzees; some cats and rats and elephants, but sure as you’re born, I swear I saw a Unicorn.”) and telling my story; that we can do better. That our next crop of leaders must be visionary - not reactionary; that we must look to the next 50 years not the next 50 weeks; that we must restore Colorado Springs to its rightful place & position as a World class destination in the global marketplace and that by working together, we can prosper. And, yes, the Mayor’s job is full-time.

Ah, and the intrigue, and just so you know, I can’t make this up because it’s too weird; while I was on a short break from my booth duties, a “Mr. Sterious” showed up and told RD and Todd “there’s a mounting conspiracy being hatched to debunk Tim’s candidacy.” He claimed a local paper was “out to get Tim Leigh” as soon as I become a wolf pack of more than one and that “there is a sitting council person who is planning to run for Mayor, make it ugly and beat Tim like drum.” Mr. Sterious, in certain conspiracy fashion, would not leave his real name. . hmm . .

And, I have spent a considerable amount of time meeting with the managers and employees of the city. And I’m continuously amazed that, in spite of the fact that I’ve been “running for mayor” for months, I still haven’t found the bogey-man. I haven’t found one city employee who’s stealing our money. I haven’t found one city employee who didn’t truly care about our city. (And yes, I saw last week’s letter to the Editor in the Gazette, where some guy complained that one of “our” employees recently got his pay increased by about $17,000. The letter’s question was, “In fiscally challenging times, why the increase?” Here’s a revelation; the problem is; nobody ever gets to the truth. And in this case, the truth is, “he took-on 2 jobs and by combining them the city’s overall payroll was cut by $50,000.” Here’s some simple advice to the weary – check the facts and get the truth, the whole truth and nothing but the truth. Then comment.

That typical misstatement leads to my observation that I believe the local conversation is not being properly couched. It seems that the city’s conversation has become “the citizens (us) vs. our employees (them)”. That conversation reminds me of the dysfunctional family at Thanksgiving. After 3 glasses of wine, everyone is more brilliant than each other and is certainly more able to solve the other’s problems better than they can. Look, the conversation we should be engaged in is, “the aggregate (the entire city, including everybody) vs. the global economy.” The question we should be asking is, “How can we partner & prosper?” And, by the way, I’d like to rebrand our “city employees” as “partners”. How can we (as partners) work together to efficiently provide the services we need to provide in a timely and cost efficient manner, and thereby improve our chances for productive economic development and growth in the context of the global economy?

And here’s couple of secrets I’ll share if you promise to keep them confidential – “we’re all on the same team” and “we’re all in this together”; and finally, let’s get our thinking straight and let’s recognize that 1) the city does produce stuff; 2) we do have customers; and 3) we are in business to earn profit. I’m just saying . . .

IT’S TIME.

PS: the commercial message – please call us if we can help you or any of your friends with property management (commercial or residential); or if you know anybody who is looking to buy or sell or who needs to lease any property (commercial or residential). They can call me directly at 719-337-9551 or they can contact RD at 719-630-2277.

Sincerely,

TJL

Tim Leigh

719-337-9551

Tim@HoffLeigh.com

May 21, 2010

2010-05-28T16:48:00.002-06:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
May 21, 2010

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $101.99 (DOWN $0.04 from last week)
We are currently tracking 83 office buildings for sale.
This is 772,516 square feet, which represents a total market value of $78,792,314.

All Market Average Industrial Building Sale Price PSF = $95.83 (NO CHANGE)
We are currently tracking 67 industrial buildings for sale.
This is 816,267 square feet, which represents a total market value of $78,220,406.

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/5.21.10.pdf

Tim’s Market Report

”Q: What are banks for?
A: To make money.
Q: For the customers?
A: For the banks.
Q: Why doesn’t bank advertising mention this?
A: It wouldn’t be in good taste. But it’s mentioned by implication in references to reserves $250,000,000 or thereabouts. That is the money that they have made.
Q: Out of customers?
A: I suppose so.
Q: They also mention Assets of $500,000,000 or thereabouts. Have they made that, too?
A: Not exactly. That is the money they use to make money.
Q: I see. And they keep it in a safe somewhere?
A: Not at all. They lend it to customers.
Q: Then they haven’t got it?
A: No.
Q: Then how is it Assets?
A: They maintain that it would be if they got it back.
Q: But they must have some money is a safe somewhere?
A: Yes; usually $500,000,000 or thereabouts. This is called Liabilities.
Q: But if they’ve got it, how can they be liable for it?
A: Because it isn’t theirs.
Q: Then why do they have it?
A: It has been lent to them by customers.
Q: You mean customers lend banks money?
A: In effect. They put money into their accounts, so it is really lent to the banks.
Q: And what to banks do with it?
A: Lend it to other customers.
Q: But you said that money they lend to other people was Assets?
A: Yes.
Q: Then Assets and Liabilities must be the same thing.
A: You can’t really say that.
Q: But you’ve just said it. If I put $100 into my account, the bank is liable to have to pay it back, so it’s Liabilities. But they go and lend it to someone else, and he is liable to have to pay it back, so it’s Assets. It’s the same $100 isn’t it?
A: Yes, but. . .
Q: Then it cancels out. It means, doesn’t it, that banks haven’t really any money at all?
A: Theoretically.
Q. Never-mind theoretically. And if they haven’t any money, where do they get their Reserves of $249,000,000 or thereabouts?
A. I told you. That is the money they have made.
Q: How?
A: Well, when they lend your $100 to someone, they charge him interest.
Q: How much?
A: It depends on the Bank Rate. Say 5 ½%. That’s their profit.
Q: Why isn’t it my profit? Isn’t it my money?
A: It’s the theory of banking practice that. . .
Q: When I lend them my $100 why don’t I charge them interest?
A: You do.
Q: You don’t say. How much?
A: It depends on the Bank Rate. Say ½ %.
Q: Grasping of me, rather?
A: But that’s only if you’re not going to draw the money out again.
Q: But of course, I’m going to draw it out again. If I hadn’t wanted to draw it out again I could have buried it in the garden, couldn’t I?
A: They wouldn’t like you to draw it out again.
Q: Why not? If I keep it there you say it’s a Liability. Wouldn’t they be glad if I reduced their Liabilities by removing it?
A: No. Because, if you remove it they can’t lend it to anyone else.
Q: But if I wanted to remove it they’d have to let me?
A: Certainly.
Q: But suppose they’ve already lent it to another customer.
A: Then they’ll let you have someone else’s money.
Q: But suppose he wants his too . . . and they’ve let me have it.
A: You’re being purposely obtuse.
Q: I think I’m being acute.
A: It’s the theory of banking practice that they never would.
Q: So what banks bank-on is “not having to meet their commitments?”
A: I wouldn’t say that.
Q: Naturally. Well, if there’s nothing else you can think you can tell me . . . ?
A: Quite so. Now you can go off and open a banking account.
Q: Just one last question.
A: Of course.
Q: Wouldn’t I do better to go off and open-up a bank?”
Punch Magazine
April 3, 1957

I received a call from one of my “good friends” who is a loan officer at one of our prominent local banks a couple of weeks ago. I was told that both of the loans I currently have with them are in “default”. Default!? How could that be? The loans are for 2 separate commercial buildings that were purchased in syndications several years ago. Even at today’s (mark-to-market) revaluations, our equity is about 50% or 60% (that’s good). I’m the manager of the respective LLC that owns each property and I know we’ve never missed a payment; we carry a significant cash balance in a money market account for each property and since our acquisition, we’ve spent considerable sums improving each property. But I was told that we were in default. Seems like there’s a technical detail in the loan documents that says if the “debt service coverage ratio” drops below a threshold level the bank doesn’t like, they can call the loan; or they could call for an infusion of new capital; or they could call for blood. Where are bankers when you need one? I’ll let you know how this works out.

I went to another bank meeting with some friends last week. Their building has dropped so significantly in value over the past couple of years, that their (disbelieving) lender validated the appraisal 3 times and each time they reached the same conclusion. Since the melt-down, their building’s value dropped from roughly $80 per square foot to nearly $30 per square foot. Where are the bankers when you need one?

From the Campaign: I have been asked about my vision for Colorado Springs. It’s simple. My vision includes resetting Colorado Springs as “a world class destination.” If elected Mayor, I intend to spend my term working toward that goal. It seems to me that that is a large part of what’s missing in our city right now; that we have no supervening vision. We’re a rudderless ship bouncing in the rough waters of the global economy with no hope of landing at the port of profitable trade & booming economies.

And if we look to our history to find our future, it’s clear that my vision is merely a restatement of what our founders intended. They settled Colorado Springs as a world class destination and it became one. Now we must reset and reclaim our rightful destiny.

The next question is “how?” John Hazelhurst seems to think the only person who can answer that question is Sallie Clark. Now I like Sallie, and my comments are not meant to disparage her. (See Hazelhurst’s column from last Friday.) But, according to Hazelhurst, Sallie’s the only person “who has all the “necessaries”, including long experience in government and business, a deep pool of passionate supporters, vast political savvy and steely resolve”. He mostly writes-off Buddy Gilmore and me. I gotta tell ya, John, I take issue that you need to have “long experience in government” to run this city. In fact, I’d submit that that’s one of our problems. We need somebody who has been doing something besides government; someone who is not afraid to raise creative, outside-the-box, fresh ideas.

Hmmm . . . Maybe it is TIME for a change. I’m just saying . . .

Sincerely,

TJL

Tim Leigh

719-337-9551

Tim@HoffLeigh.com

May 14, 2010

2010-05-10T09:36:00.002-06:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
May 14, 2010

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $102.03
We are currently tracking 85 office buildings for sale.
This is 813,658 square feet, which represents a total market value of $83,017,414.

All Market Average Industrial Building Sale Price PSF = $95.38
We are currently tracking 68 industrial buildings for sale.
This is 819,115 square feet, which represents a total market value of $78,129,906.

To View Tim Leigh’s ad, please click below!
http://hoffleigh.com/Doc/Tim%20Leigh.pdf

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/5.7.10.pdf

Tim’s Market Report

I’ll be honest, it is killing me; sitting at this key-board, looking at the very clear, blue sky framing the white topped Pikes Peak. It’s already late in the day for me (7:30) and I plan to be illegally climbing that dreaded incline within the hour. In the meantime, some thoughts:

Contemplating the state of the world and wondering how the heck we’re doing, I’d have to say that for people looking for security and investments; keep looking. It used to be, you could count on your pension; but then we’re told PERA is un-fundable under their current 8% growth rate assumptions and we’re told we should plan to work into our late 70’s or early 80’s – now there’s an idea.

And I don’t know, but I’d say we’re in for an interesting ride this week and over the coming months; I mean, come-on, the Grecian economy slid off the cliff last week infecting all world markets; the Dow dropped 1,000 points then “recovered” so the daily close was “only” down about 400 points; about 6% for the week. And who believes the reason for the drop – clerical error; come-on. (Psst - hey, I’ve got some swamp land in Arizona that I need to sell!) And as the Dow dropped, gold ramped up to its highest 1 day close. Did we miss that bus? I can remember simpler times when a drop of 50 points was cataclysmic.

And if that’s not enough, the Chinese government is worried about their housing bubble. I read an article that stated the Peoples Bank of China now forbids loans for 3rd homes and has raised the down payment requirement for 2nd homes. Apparently, speculation is rampant and there’s a report floating around claiming (in 70 leading Chinese cities) home prices rose nearly 12% in March. In one month! Andy Xie, formerly chief Asia economist at Morgan Stanley says China’s real estate market is 100% overvalued. That’s going to be an interesting foot to watch fall, and I wonder, “What will be the impact on our economy be?”

THE CAMPAIGN: Yes; that’s the answer to everyone’s question. Yes; the mayor’s position should be a full-time job. I’ve previously said, “Running for mayor is a full-time job.” (In fact, I’ve already lost some clients who felt that I couldn’t fairly represent them because of time limitations.) And if running for mayor is a full-time job, heck; I don’t know, maybe actually being the mayor is a full-time job.

Here are a few examples.

Let’s see; being the city’s number 1 encourager & advocate – that would be a full-time job;
Or being the city’s number 1 salesman & promoter – that would be a full-time job;
Or being a proponent of existing businesses – that would be a full-time job;
Or helping create new employment options - that would be a full-time job;
Or being aware of the various departmental budgets and making wise decisions as they relate to the efficient operation of the city – that would be a full-time job;
Or being involved in public safety and being aware of crime and police and fire department requirements; that would be a full-time job;
Or being aware of utilities rate needs to fund exotic new water delivery systems - that would be a full-time job;
Or being aware of the hospital’s budget & requirements for structural change – that would be a full-time job;
Or being aware of enplanements & the need for better air service – that would be a full-time job;
Or being involved with state and national legislative issues that impact our region – that would be a full-time job;
Or moderating timely conversations about, Oh, I don’t know – medical marijuana, homeless camps, opening Pikes Peak to recreational use, filling pot holes, relighting dark street lamps, replacing trash cans, watering parks, etc., etc., those all seem to me, an indication that being mayor is a full-time job.
Let’s see; promoting arts & culture – that would a full-time job; or traveling with the Chamber, the EDC, the VCB – that would be a full-time job; or promoting trails & open space – that would be a full-time job.

Let’s see; actually talking to each council person and promoting common agendas – that would be a full-time job; or promoting a vision, “where we look to the past to find our future”, where we’re, once again a world class destination city, where we promote a sports & wellness culture – that would be a full-time job.

Yes; a full-time mayor. IT’S TIME.

By the way, the last guy that I knew about who could multi-task like a mayor was Padre Pio. He was the renowned Catholic mystic who passed in 1968. Because of his ability to multi-task, he actually became St. Pio (www.padrepio.com). It was said that he could be in more than one location at a time and always left people feeling better.

Realize, right now, we have 9 very well intended, part-time employees being paid about $500 per month who are asked to run a $2 Billion dollar corporation; that, my friends, is silly on its face. We need a change. The city has outgrown its business model. We need qualified, full-time employees who have time to focus on the various issues and make timely and wise decisions.

Sincerely, TJL Tim Leigh 719-337-9551 Tim@HoffLeigh.com

April 19, 2010

2010-04-19T12:51:00.001-06:00

Dear Friends,

As you know, I try to write about the current market conditions in Colorado Springs every weekend. This has grown to be my most arduous task weekly. My audience has grown to be significant in many respects; size, intellect, demand, for example. Trying to write something entertaining, edgy, witty, informative, provocative is no easy task, especially with such a diverse readership. And we all know the saying, “you can’t please everyone, every time”.

And, in my process of running for mayor, I have learned and learned and learned that I have to be more careful about what I say and write. Frankly, (and those of you who know me, know this) I have toned-it-down, a lot.

I’m writing to let you know that I will be taking a hiatus from my weekly report. It has been a fun run. I want to thank you for reading.

Before I sign-off, I’d like to correct a factual statement that I made last week; I don’t know the budget deficit coming at us in the next budget cycle. I thought the deficit had improved to be “only” $20,000,000. I spoke prematurely; it could be more; (I am going to continue hoping that it will be less!) Suffice to say, “tomatoe – tomato” we still face enormous challenges in many regards which will require a new way of thinking about local government.

With warm regards from the front lines,

Sincerely,

TJL
Tim Leigh
719-337-9551
Tim@HoffLeigh.com

April 16, 2010

2010-04-19T12:48:00.002-06:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
April 16, 2010

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $102.62 (UP 0.90 from last week)
We are currently tracking 88 office buildings for sale.
This is 808,761 square feet, which represents a total market value of $82,993,314.

All Market Average Industrial Building Sale Price PSF = $98.30 (DOWN 0.14 from last week)
We are currently tracking 68 industrial buildings for sale.
This is 842,751 square feet, which represents a total market value of $82,839,906.

To View Tim Leigh’s ad, please click below!
http://hoffleigh.com/Doc/Tim%20Leigh.pdf

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/4.16.10%20%20Colorado%20Springs%20Journal%20Ad.pdf

Tim’s Market Report

“Take me out to the ball game; take me out with the crowd.
Buy me some peanuts and cracker jacks; I don’t care if I ever get back.
Let me root, root, root for the home team, if they don’t win it’s a shame.
For its one, two, three strikes you’re out at the old ball game!”
Jack Norwith
Circa 1908, on a napkin, on a train

“Well, well, well”, Billy Bob said in his slow, southern gravelly voice, tugging on the suspenders straining over his round and bulging gut that didn’t know how pants could stretch that wide. “We all know real estate’s an easy game and commercial real estate must be really easy. I mean, come-on, how tough can it be? Bunch of big shots buying and selling big buildings; doin’ big deals; sounds like big and easy money to me! Heck, when I retire from the bank, I want to do what you do!”

And we had a land deal close this past week and its worth mentioning because it’s the poster child of what’s wrong with our banking system; “they cain’t play one note of music!” It went under contract April 10, 2008. And, ah, Bob, that would be about 2 years ago. Hmmm. . . Something about big and easy.

The story is that a friend of mine wanted to buy a lot on which he planned to construct a batch plant. He had trouble with financing back then, so the Seller leased him the lot for 12 months. Then the world fell apart and he really couldn’t get financing. In the meantime, he constructed his plant on the property and according to the lease, in the case of default it would become the Landlord’s property. My friend, the bedeviled buyer continued, desperately searching for financing from every possible source, including at one point, those “evil, hard-money lenders, who will break your leg if you don’t pay or who will buy a Red Rider BB gun and shoot your eye out!” (In fact, the hard money guys disappeared. The story is, their loans disappeared like so many bank loans and they were out of the game.) And I’m just going to say, it’s a pretty sorry story when, even the loan sharks can’t make a loan. . . I’m just saying.

At any rate, the Landlord bloomed into a Seller. He also became the primary lender-precedent to the deal. The Landlord cum Seller borrowed the full amount of the purchase price from a 3rd party; he then loaned that money to the Tenant, now Buyer, who used the proceeds to purchase the property from the Seller who had just loaned him the money. I know - try following that deal without getting dizzy. In fact, N.B., that’s why we get the big bucks; because we’re able to keep our bearing when everyone and everything around us is suffering from vertigo-on-roids, spinning mercilessly out-of-control. (Oh where, oh where is my medicinal marijuana, oh where, oh where can it be?) And at the end of the day, the Seller was able to complete a 2nd leg of the transaction with at 1031 exchange and thereby saving thousands in taxes. What a country! Of course it only took 2 years. Hmm. . . and at an hourly rate of about 4 cents per hour. . . Heck, I wonder if there’s a Gazette paper route available?

And then I stood in place of every kid or guy or lady that ever wanted to toss out “The 1st Pitch” of the season on Friday night. I was invited by the Sky Sox to throw-out the 1st ball. What a hoot! Those of you who know me, know I’m no baseball player; never was; nope. But I managed to get in 3 practice throws at Coronado’s home field beforehand and assured myself that I could (at least) throw a baseball 90 feet.

Then, over the loudspeaker, the announcer boomed, “Now throwing the 1st ball of the season, Mr. Tim Leigh, candidate for Mayor and certainly a man with a magic wand, who can solve everyone’s problems!”

I confidently strode to the mound and clenching the ball tightly, I slowly raised both hands to the middle of my breast; I paused and thought about all the great pitchers who have thrown before me; warm autumn evenings, bright night-lights, peanuts & beer; “hey, batter-batter, swing batter-batter; hey batter-batter”; hard fast balls right down the middle. I took a deep breath and held it; wound-up, right arm rounding my shoulder from back-to-front and extending northwest, I fired the ball toward the catcher’s mitt. Smack! All you could hear was smack; the sound of a hard, white ball crisply smacking into the well worn leather of the catcher’s mitt. Then the catcher stood up, gingerly removed his catcher’s glove and massaged his freshly bruised hand for the speed and power was more than he could handle. Then, he tipped his hat and winked at me, all to say, “You’re OK”. And I was. I was OK for all the folks who ever dreamed of throwing out The 1st ball of the season. (OK, I’m just kidding about the last part! – he didn’t wink.)

I have been asked several times in the past few weeks about my candidacy www.TimLeighforMayor.com. Why run? I guess that’s a fair question and since I am running for mayor, it’s a question I can easily answer. I’m running for mayor because I truly care about our city. It’s about that simple; and, I don’t see a lot of other folks running to the front of the bus. In spite of what the bloggers claim, it’s not about the money and for them, here’s a news flash – the salary’s about $500 per month. My gas-guzzling, carbon-neutral, used SUV guzzles more than that every month! So, no my dear friend, (Mr. Blogger), it’s not about the money. It’s because I care.

And I’ve been asked what I think about the “Strong Mayor” vs. the “weak mayor.” Again, I answer easily with a question, “Isn’t the Strong Mayor that guy some folks have seen at the Cross Fit gym?” Then I answer seriously; that I started my journey before that controversial issue was raised. When I started, it was with the intention to govern full-time under whichever form of government we had in place at the time of the election. If our system changes, I plan to be prepared; if it doesn’t change, I plan to be prepared. Look, right now we have 9 very well intended folks, working part-time for about $500 bucks a month running a $2 Billion dollar corporation, which operationally, is about the equivalent of 70 small & large businesses. Einstein said if you keep doing what you’ve always done, you’ll keep getting what you’ve always got. Any other expectation is insane. “Strong or weak?” - “Compensated or not?” Tell me what you think; Tim@HoffLeigh.com.

And, OK; just between the 2 of us - you should realize that, “just” RUNNING for mayor is a full-time job! OK, let me repeat that, “RUNNING for mayor is a full-time job.” Can you imagine being the CEO of a $2 Billion dollar corporation on a part-time basis for $500 bucks a month? Ah, who did you say was running the asylum?

And a couple of bureaucrats submitted their finest impersonation of caring government employees last week. One’s running for another position; OK, good luck with that. Not much chance of me supporting that candidacy; and yes, he actually had the gall to ask for an endorsement, even after his office managed to jack-up $50,000 transaction that’s still jacked-up after nearly 12 months. Want details? You have to call me. Another was grounded in absolute arrogance; could have solved a very simple matter with common sense. Oh, wait; common sense? What? . . . Look, I love the employees that take care of us, (and that would be most of them), but the ones that have to go, well, “IT’S TIME.”

So the trek continues, and as it continues I meet more very interesting and interested citizens; I met with several key city employees who are doing an exceptional job and if I told you what I learned, I’d probably have to kill ‘ya for your own safety. As it is, suffice to say that passion runs deep in local politics. I’m learning that people really care about public safety and keeping the parks open and they care deeply about our community.

And finally; good news this week; looks like I have buy-in from several key folks to pursue my idea of writing a linear history of Colorado Springs. This would be a year-by-year history, discussing key events and players. It would tell our story. The idea is to form a collaborative team made-up of 2 sharp students from each, Colorado College, UCCS and Pikes Peak Community College, who will be supervised by a professor (and published author), endorsed by the Pioneers’ Museum and financially supported with a non-profit grant. While this is still a work-in-process, I’ve noticed that good ideas get play and in fact, I already have several volunteers including a well known, local, western artist who volunteered to do the book’s cover art.

And, more good news, the budget outlook for this cycle seems to be improving. Instead of dying quickly, it looks like we’re going receive some much needed relief in the form of increased sales tax revenue. So, instead of a $33,000,000 shortfall or a $27,000,000 shortfall, it looks like we’re “only” going to have to cut $20,000,000 from the current budget. Hmm. . . Where’s that ax? How much does that paper route pay?

And lest I forget, 1) If I don’t remind you that we’re a real estate company and need your support, www.HoffLeigh.com, my son-in-law, the president of HLI gets mad at me; and 2) if I don’t remind you that our campaign www.TimforMayor.com needs donations, my treasurer gets mad at me. Please, help keep me out of trouble!

Keep it real,

Sincerely,

TJL
Tim Leigh
719-337-9551
Tim@HoffLeigh.com

April 9, 2010

2010-04-12T16:03:00.002-06:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer or Tenant Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
April 9, 2010

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $101.72 (DOWN 0.73 from last week)
We are currently tracking 86 office buildings for sale.
This is 797,887 square feet, which represents a total market value of $81,158,314.

All Market Average Industrial Building Sale Price PSF = $98.44 (DOWN 1.44 from last week)
We are currently tracking 71 industrial buildings for sale.
This is 860,125 square feet, which represents a total market value of $84,671,156.

To View Tim Leigh’s ad, please click below!
http://hoffleigh.com/Doc/Tim%20Leigh.pdf

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/4.9.10%20Colorado%20Springs%20Business%20Journal%20Ad.pdf

Tim’s Market Report

The following is an excerpt from a letter that I wrote last week. After I wrote it, I thought this information could be instructive to the market and if you follow the math, you can see where our current, Class B office-building sale market is, and where I believe it’s headed. Remember, don’t shoot the messenger; I’m merely reporting facts as they lay themselves before me.

“The average office building for sale (in the market today) is listed at $101.72 per square foot (psf). Your building’s 10,963 square feet, ergo, at the average, your building should be listed for $1,115,156.36. It’s not; your building’s listed for $1,325,000. And in normal times, you’d be OK. Somebody would make an offer, because you weren’t out of range.

However, The Tax Assessor says your building’s worth about $42.22 psf ($465,000 - in rough numbers). The Assessor’s market valuations come from “sold-property-comps” which are the benchmark that the whining, Mr. Market demands before a property actually sells. (A few years ago, we used to lampoon The Assessor and say his valuations were about 25% - 50% under the market; now we say he’s pretty wily. Hmm. . . And a few years ago, I had a full shock of dark-brown-hair!) My, my, o’my, how things have changed!

The reality is, investment buildings are worth a multiple of their net income; period. Your building’s net income is $44,000 (and that presumes no debt) which means your building’s worth about $440,000 (which interestingly enough, is similar to The Assessor’s value). I’m sure you paid more than that, so I’m sure this is terrible news; but it’s Mr. Market’s reality.

And, while this won’t likely make you feel better, realize “you are not alone”. Here’s a direct comp & validation of the free-fall in pricing we’re experiencing in the Class B office building market; 6208 Lehman Drive; a 3 story office building near the corner of Lehman & Academy; the Sellers paid $2,050,000 in April 2002 – (8 years ago) and Hoff & Leigh has had the property reasonably listed for sale for over 2 years for $1,900,000. That’s all reasonable in normal times. Heck, in normal times, somebody would make an offer because the pricing was not out-of-range.

Then there was this meeting. I think it was at The Julie Penrose Fountain because all I remember was this very cold water splashing my face. No, wait - it was with some Bankers who provided the building’s current appraisal for me to analyze. Yea, that’s right. It was the bankers who were carrying that darn pail. The new appraised value? $795,000. And no, that’s not a misprint.

The new appraised value is $32.72 psf. That’s a loss in value of $1,255,000! That’s a loss in property tax collection of $21,500! OK, think with me just a bit. If you’re planning a city-wide budget and you see this startling diminution of value in 1 building; then another and another and another, well, you get the idea. Houston – we have a problem! The appraisals author said the Lehman Drive property won’t “stabilize” for at least 5 years and even then, he expects its stabilized value recovery to only 50% of its previous sale price.

All building prices have fallen. They continue to fall and they will fall further. If you don’t have to sell for a few years you might be OK. If you have a bank note coming due, you have a serious problem.”

Folks, “this time it’s different” and these facts require serious thought and attention. It’s been said, and I’ve written, that we have enough vacant commercial space that it will take nearly 25,000 new jobs to fill it. Because of supply & demand dynamics, rents (and attendant building values) have dropped like a dead man tossed from the Golden Gate Bridge, and will continue splat one after another so long as we continue to carry the dead weight of vacancy on our backs. And without serious attention to city-wide ED (no Bob, that’s Economic Development), we will continue to carry that weight.

FROM THE CAMPAIGN (aka, “The Life & Times of Tim”)

Over the past couple of weeks, I’ve met with well-placed people who have independently indicated 2 things that are very troubling to me and should be to you, too; 1) we have a significant gang problem in Colorado Springs that’s becoming worse; and 2) we have a diminished capacity to protect ourselves because we’re laying-off cops because of budget cuts. Ok, will somebody tell me how that makes any sense? This is something we need to fix.

Actually, I was told the ruthless Zeta gang has set-up shop. The Zeta’s are the enforcers for the Mexican drug cartels. They’re a vicious group started by Mexican military “special-forces” deserters. These are the guys that chop-off heads and tie victim’s faces onto soccer balls. They like Colorado Springs because of our location along I-25, (a major drug delivery corridor), and that we have a diminishing police presence. Hmm. . .

And I met with Allen Greenberg – the new editor at the CSBJ. Allen’s come-up with his bullet list for what the next mayor should look like. He says the new mayor should be: 1) Someone who can pull Colorado Springs out its current funk; 2) someone who won’t turn the mayor’s office into a place of ideology; (just fill the pot holes and turn-the-lights back on, please); 3) someone who knows how the government functions – he’s not looking for dilettantes or wannabes; 4) someone who can be trusted to serve the interests of everybody; and 5) someone who can work with the city council in a cooperative, rather than adversarial manner.

He told me that Indianapolis Mayor Hudnut said a Mayor’s job is to conduct the orchestra; that a lot of people are playing different roles and it’s the Mayor’s job to get them playing in harmony. Gee, I wonder if Allen saw my 3 campaign promises; my number 1 promise is to conduct the orchestra; and I wonder if Mayor Hudnut knows how to line-dance?

Up this week; many meet & greet meetings (say that 3 times as fast as you can after a cool glass pinot noir on the back deck); a final water tour; continuing study on the strong vs. not-strong mayor and the city’s budgeting process; just trying to understand how the model-T works and where the bodies are buried.

And I don’t want to end on a low note. In fact, the more folks I meet around the city and the region, the more encouraged I become and the more compelled I am to believe that we can fix what’s broken; we can live-within-our means; we can provide citizens with the protection we demand; fill-the-pot-holes and get the lights turned-back-on.

Sincerely,

TJL
Tim Leigh
719-337-9551
Tim@HoffLeigh.com

March 28, 2010

2010-03-29T11:50:00.002-06:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer or Tenant Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
March 28, 2010

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $102.45 (DOWN 0.35 from last week)
We are currently tracking 84 office buildings for sale.
This is 789,314 square feet, which represents a total market value of $80,862,414.

All Market Average Industrial Building Sale Price PSF = $99.88 (DOWN 0.47 from last week)
We are currently tracking 64 industrial buildings for sale.
This is 799,101 square feet, which represents a total market value of $79,815,656.

To View Tim Leigh’s ad, please click below!
http://hoffleigh.com/Doc/Tim%20Leigh.pdf

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/3.26.10%20Colorado%20Springs%20Business%20Journal%20Ad.pdf

Tim’s Market Report

While studying the office buildings for sale this week, I noticed we’re still fighting an uphill battle with pricing. The average (class “B”) office building’s list price is $102.45 psf and the assessor says it should be $68.84 psf. That’s a difference of $33.60 psf. Our (office building) market’s got 789,314 square feet for sale, city-wide. That means, (according to our local expert - the tax assessor, whose prices come from “sold property comps”), our inventory’s still overpriced vis-à-vis the market, by nearly $26 Million dollars!

As owners, we’re still drinking the Coolaide and believe our real estate’s worth more than it is. We’re still over-valued by nearly 33%! Want a glimpse of the future? Expect the continuing price deflation of office buildings for sale in Colorado Springs. Remember, you can fool Mama; you can fool Papa; and sometimes, you can even fool yourself. But, you can never (repeat that word – never), fool Mr. Market! Until we correct our thinking, we’ll languish in the slosh.

And, according to the assessor, “industrial buildings for sale” are over-priced by about 36%. (Where’s that nighttime Tylenol? I want to sleep until the market makes me look smart, again!) The average listing is priced at $99.88 psf; the assessor says it should be around $63.87 psf. Considering there’s about 800,000 square feet of industrial property listed for sale; that means that market must drop by nearly $28,000,000 before it will clear. As I’ve said – there will be blood.

So, you’re thinking, “Where are the deals?” Not downtown; there’s 22 buildings listed for sale in the 80903 zip code (the largest number of listings by zip code in the city). In that zip code, that average building’s for sale for nearly a 45% premium. It’s listed for about $135 psf and the assessor says its’ only worth about $75 psf.

The Seller’s who’ve come to grips with reality own buildings in the 80909 & 80917 zip codes. They’ve lowered their prices to most closely meet Mr. Market’s demand. In 80909, for example, the average building’s listed for $86.69 psf and the assessor’s value is $75.45 psf. That’s merely (merely?) a price differential of $11.24 or about 13%. And, in 80917, where the average listing is $72.99 psf, the assessor says it should be $68.54 psf, a difference of $4.45 or comparatively, a very nominal difference. These zip codes are in the “challenged” Academy Boulevard corridor and reflect diminished values (caused by the lost “business-trade” area population) of that corridor appropriately. You could make a pretty compelling case, that if you’re interested in buying an office building in Colorado Springs, that’s an area where you can “make a deal”!

I have 2 Tim Leigh’isms that I preach; 1) prices need to reflect what Mr. Market will pay or else they won’t sell; and 2) in Colorado Springs, much of our “class B” inventory has become worn-out and therefore, prices need to drop to reflect that “wear & tear” plus the cost of renovation to meet Mr. Market’s demands.

If you’d like to know what your building’s worth call me 719-630-2277 or shoot me an email Tim@HoffLeigh.com For a limited time, we’re offering free valuations – no cost; no obligation; just reality.

FROM THE CANDIDATE:

Gossip & juice . . . that’s what I get . . . Gossip & juice.

As you know, I’ve been working diligently for the past several months learning where the bodies are buried and how the conductor runs the train and I’ve been getting Gossip & Juice. None-the-less, last week was another action-packed, event-filled marathon of learning. I learned some real things and I’ve learned some Gossip & Juice.

I learned that I can give a political speech. I gave my 1st one last week and surprisingly, it wasn’t all bloviation. There was some meat and I’m told, it was fairly-well received. I was told the 1st one is the hardest. I was glad to get it over.

Up this week; a meeting with Memorial Hospital CEO, Larry McEvoy; Police Chief Myer; a small presentation from Mayor Hickenlooper to hear his opinion on “strong-mayor”; participation in the “Future’s Forum” and in my spare time, continued study in preparation for my short-course in top-down-budgeting (“Budgeting for Outcomes”). I’m studying the Ft. Collins model in preparation for my meeting with Mayor Hutchinson and his finance team (City Manager Darin Atteberry and CFO Mike Freeman). Ft. Collins’ Mayor Hutchinson had a financial situation very similar to ours with continuous budget shortfalls when he first took office in 2005. Since then, Ft. Collins changed their model, from “bottom-up” to “top-down” very successfully. (In their 1st year, they eliminated nearly 160 city government functions with no constituent complaints! The story was, nobody missed what the government was doing in those 160 areas! I think I hear a message in there somewhere.

I learned (well, I had been told this already, but it’s on a lot of folk’s mind) we have unfunded pension liabilities exceeding $120,000,000. That’s a lot of money. Notice that one worrisome word, “unfunded.” Unfunded means there’s no plan; there’s no money. Coincidentally, I learned Vallejo, California had a similar problem and ultimately declared bankruptcy. Hmm . . . I wonder if they turned-off the lights and collected the trash cans first.

And speaking of California; you know they’re broke. So, what’d they do? The Sunshine State booked nearly $1 Billion in new revenue from various taxes attributed to growing & distributing medical marijuana last year. That’s a lot of money, too.

And speaking of “Medical marijuana” (and yes, this is funny because we bill ourselves as “The Sports & Wellness Capital of America” and then find-out we can’t be that healthy after all.) I mean, come-on, based on the number of applicants for “Pot-Cards” it’s easy to see that we’re suffering from an epidemic of biblical proportions whose only cure is “The Pot”. Hmm . . .

Let me explain. Last week I learned that (right now) there’s a back-log at the Colorado Department of Health of nearly 100,000 applications for medical marijuana cards (Pot-Cards). Each card entitles the holder to grow 6 marijuana plants for his own “medicinal use”. Not counting the cards already issued or those to come, the 100,000 cards multiplied by 6 plants is potentially 600,000 plants. (“In the trades”, the pot grower and dispensary hold each individual’s card and grow the crop; individuals normally don’t.)

I’ve been told the feds say (gossip & juice) that if you have less than 99 plants in a grow facility, they’ll leave you alone. The grower’s have determined that you need about 1,000 square feet to adequately grow 99 plants. Performing the simple math learned in Mrs. Vedejas’s 4th grade, I calculate those 600,000 plants will require roughly 600 new growing “salons”! I learned that about ½ (300 salons) of that plant volume will be attributed to El Paso County & Colorado Springs.

OK – let’s have some fun. We currently list nearly 800,000 square feet of industrial buildings for sale. If we ascribe the reported ½ of the total pot-plant-volume (just the current back-log) to our area, we’d fill nearly 38% of our vacant industrial buildings for sale! Hmm . . . Let’s see; I like that idea. (For you lucky dogs who get to sell the buildings, you’d realize something like $2,000,000 in new real estate commissions. Anybody want to buy a car? A new flat panel?)

Now, here’s an idea. Let’s accept that pot’s a reality - because it is. No moralizing or preaching here - just a business idea. Let’s zone it; regulate it; and tax it. 300 new “salons” needed you say? (Check my math.) Let’s ascribe a $2,000 start-up tax and an attendant $3,000 per year “moral-hazard” tax. Let’s see – 300 X $2,000 = $600,000 in new taxes for the start-up and $900,000 every year thereafter (just by taxing the known, current back-log). What’s it cost for that water and those trash cans again? (Here’s a random thought – how about a special “green-overlay-zone” of the Academy Boulevard corridor big boxes that need an alternative use? Er, pardon the pun – I’m just trying to think outside the box.)

Here’s another idea. If we have 300 new salons, and if each salon yields 100 pounds of new “pot-per-year”, we’d produce 30,000 pounds of “pot-per-year” (and I’m guessing my numbers are very low). The street value of pot’s about $8,350 per pound. Thanks to Mrs. Vedejas and Dr. Kochtu (hug your kid’s teacher on Monday), I can do advanced math. 30,000 pounds X $8,350 (street value) per pound = $250,500,000 in new sales! Let’s see; what’s the going rate? 7% you say? Ah, yes; what a magic number; real estate commissions or taxes - I guess they’re about the same.

Taxing, (just the known back-log production), pot would produce about $17,535,000 in new tax revenue. OK; OK; OK; you’re a skeptic. I get that. Let’s presume I’m wrong by 50%. That’s not likely by the way, but I’m feeling generous. Gee; we’d only make around $8,500,000 in new tax revenue. Let’s see, how many “pot holes” need filling?

Now for the crass commercial pitch – go to www.TimForMayor.com Tell your friends to go to www.TimForMayor.com and check it out. I’m guessing that we need to raise about $300,000 to win the mayoral election. If you’re interested in my energy and ideas and willingness to work hard for our community, lend a hand. It’s TIME.

Sincerely,

TJL
Tim Leigh
719-337-9551
Tim@HoffLeigh.com

March 21, 2010

2010-03-22T15:46:00.002-06:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer or Tenant Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
March 21, 2010

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $102.80 (DOWN 0.01 from last week)
We are currently tracking 82 office buildings for sale.
This is 773,210 square feet, which represents a total market value of $79,482,414.

All Market Average Industrial Building Sale Price PSF = $100.35 (DOWN 0.26 from last week)
We are currently tracking 62 industrial buildings for sale.
This is 784,888 square feet, which represents a total market value of $78,763,156.

To View Tim Leigh’s ad, please click below!
http://hoffleigh.com/Doc/Tim%20Leigh.pdf

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/3.19.10%20Colorado%20Springs%20Business%20Journal%20Ad.pdf

Tim’s Market Report

I have a friend who built an office building in the worst possible time. Buoyed by rising real estate values, illusory and easy riches, and what he believed to be the best location along the front-range, he went to the bank, easily borrowed more than he could have imagined and proceeded to go broke. When he was rich, he was heard to periodically cackle that he “couldn’t imagine any bank lending him nearly $13,000,000” over the life of the project. The market crashed; my friend’s bubble burst and the property went to bankruptcy and his cackle grew softly hollow; Boom-bust-boom.

The Antler’s Hotel, as it turned out, opened at the worst possible time on June 1st, 1883. Colorado Springs was in the midst of a “five-years-doldrums” . . . The Spring’s population was static at 4,500 . . . “just too few people to support all those Antler’s Hotel bathrooms (7) and leather upholstery” . . . Within a year of opening, the hotel was unable to meet Mr. Caird’s 8% interest and went into trusteeship.” And while the town-folks despaired, they couldn’t imagine help was on the way! And prodigious help was on its way which would invigorate the town beyond imagining; Boom-bust-boom.

Zalmon Simmons, (the guy who made the original Simmons Beauty Rest Mattress), made a trip “out west” to investigate the success of one of his military application inventions – a wooden insulator for telegraph lines. He took a 2 day mule ride “on Balaam’s razor edged back” to the top of Pikes Peak. After several days of painful recovery, he decided that he’d invest $1,000,000 “so that he, and the rest of the soft-bottomed human race could ride up Pikes Peak in the greatest comfort that technology could provide - specifically a Cog Railroad.” The 1st train took off around 8:30 AM on June 30th 1891 and as they say, the rest is history . . . Boom-bust-boom.

Colorado Springs’ story is a 140 year saga of one real estate boom and bust after another. When you’re able to get your arms around that fact, it becomes easier to stomach the current downturn.

For example, when it was first founded and being settled, General Palmer’s agents, (former Colorado Governor Hunt and Irving Howbert), set about buying acre lots for $.80. They later sold them (during the next 20 years for over $15,000 per acre!) But, in the meantime, Palmer went broke at least once and maybe twice. What’s it they say, “It’s a long, bumpy road to Lasting Riches.” And it’s the same now. Many have been rich; now they’re poor, but they’ll likely be rich again; Boom-bust-boom.

Then, there’s Burt Myers who owned about 700 acres on the “flats” just east of the Broadmoor Hotel where he grew wheat and corn. In 1881, Billy Wilcox, who “was suffering from the tuberculosis” bought the parcel and converted it to the Broadmoor Dairy. The crisp Colorado air cured Wilcox but couldn’t redeem his ineptitude as a dairy farmer. Luckily, Count James Portales, while traveling from his Silesian estate looking for real estate deals in America showed up. (Portales was looking for ways to shore-up the finances of his Glumbowitz estate. Glumbowitz was the 9 Polish villages and surrounding lands Portales inherited.) Portales was looking for fabled 8% mortgages, that he was told, he could find “out west in America”. Instead of mortgages, Portales invested $25,000 in the dairy which subsequently suffered from continuously-sick cows and dirty competition; (his competitors dumped oil into his Broadmoor Dairy milk cans!); Boom-bust-boom.

And, so you know, almost everyone I know confides in me, at one time or another, “I want to retire and do what you do”. (I know, I usually laugh, too). But, seriously, they say “I want to get into real estate!” Folks, let me tell you, the illusion of easy money’s an illusion.

And in that context, the real estate bug bit Portales. He gave up the diary and started the Cheyenne Lake Land & Improvement Company. He started “doing real estate” (which is another euphemism I never understood) Portales built a lake and casino to attract home-site buyers to his new development. (The Gazette called the development “a sunny place for shady people!” which was probably a tribute to characters like John “The Bath” Coughlin, Alderman of Chicago’s 1st Ward, who lived there and had a hand in starting the Zoo.) Unfortunately, while Portales was working on his project, the banking panic of 1893 hit. (Damn, that sounds familiar!) Money couldn’t be borrowed - even at 15%! The inevitable happened and Portales lost the property to a receiver; Boom-bust-boom.

So, as our history has been and our present is, our future will be – one long boom-bust-boom. And, yes, once again, we’re in the midst of the doldrums; a terrible cough. And it’s likely to get worse - until Mr. Market accepts the reality that our inventory of commercial property is tired & worn-out and become priced appropriately. Gladly, history repeats itself and we’ll get better; Boom-bust-boom.

In 1883 our population was 4,500. By 1890 with the advent of the Cog Train, other tourist oriented attractions and other economic developments, our population shot-up to nearly 12,000. In 1884 (at the depths of their depression) Mr. Marcellin DeCoursey bought a lot on Tejon Street for $500 bucks. He had the Little River Band’s courage to hang-on and buy when “the blood was running reddest in the street”. He sold his lot 6 years later for $15,000; Boom-bust-boom.

Boom-bust-boom . . .

And now, I’d be remiss if I did not recount The Candidate’s recent activities because the heat’s being turned-up. We’re now only about 12 ½ months away from a local election that will shatter all precepts of how we “do business” in Colorado Springs and that will redefine our expectation local government. So, here’s the report:

Over the course of the past week, I’ve continued my self-study on “How to run a city 101” a curricula course on the way to a self-designed Masters Degree in mid-city politics. I’ve been in meetings and conversations learning more and more about Colorado Springs, how it works and “how the game is played”.

I attended a briefing at Peterson Air Force base where there was the equivalent of 15stars presenting. That’s three 4 star generals and one 3 star general. (Oh, Colonel, can you fetch me some coffee, please?) Wow! I’m not sure the average citizen realizes how important we are to the military and how important the military is to our community. What was my take-away? One of the presenters said with certainty that we will have another terrorist attack on our homeland sometime in the next 3 years. It’s not a question of “if” it’s only a question of “when” and “where”. The likely target would be a jet and the likely goal would be the disruption of our economic system. And yes, my stomach turned.

Did you know that Ft Carson is now home to nearly 75,000 folks? That it’s the largest employer in the state, except the state; that is has nearly a $4.3 billion impact on the economy; that it will have $500,000,000 in new construction this year; that it recently finished construction of 408 new homes, 96 4-plexes and is finishing a 78,000 sf fitness center? Ft Carson has always been a big part of our regional economic success and has played a significant role in insulating us from the national downturn, so far. And by the way – a little history - Camp Carson was the child of the city fathers in the mid-1900’s who lured them by plying the generals with sunshine and moonshine. (That would be Spec Penrose’s secret stash of fine liquor, Bob.)

And I sat with Rear Admiral Mike Parks at breakfast on Saturday. Mike was one of the commanders in charge of the Haiti relief effort. His former job was “Chief of Staff for the United States Coast Guard Atlantic Area, an area that encompasses the eastern half of the world”. Re-read that – “the eastern half of the world”. Our military partners have scope, depth and power and we need to build-on and solidify those relationships.

Mike told me to imagine the worst possible poverty that I could. He said that would be Haiti. Then he said imagine that on steroids. That would be Haiti after the earthquake. Nearly (the equivalent of) ½ the population of Colorado Springs died in the 1st wave of the earthquake. Stop. Rethink that. Today, volunteers feed nearly 200,000 homeless Haitians daily and they expect that it will take nearly $12 Billion to get Haiti back to being “just poverty stricken”. (If you’d like to hear the whole story, call my friend Jay Flanagan at 719-640-5076.)

And I met the guys that want to run the trolley system through the downtown. We’ve had a trolley system before. In fact, Stratton spent nearly $2,000,000 renovating the system in 1900. It was said that “He had no better use for the two million dollars and he was ready to meet any deficits.” I like the idea of trolley cars. The question will be “how can they fund it?” Where’s Stratton when you need him?

And I met with some folks from the Colorado Springs Utilities. (Yes, they’re the guys normally depicted as wearing black hats.) We’re concocting a plan to turn the Monument Creek watershed into a city amenity at no cost to the taxpayers with volunteers. When we get that done, I’m handing out white hats!

Our history is one of financial peaks & valleys and it’s not an understatement to say we’re living in turbulent times. We’re bombarded “daily” with bad news. But, if you dig a little below the surface, which is what I’ve been doing for the past several months, you’d discover what I’m discovering. There’s great reason for optimism. We’re smart and we’ll figure-out how to work-through our troubles. There’s a groundswell clamoring for positive change and in the midst of our doldrums, people are finding opportunity and moving forward with positive, creative first steps.

And now for the crass commercial message: My web site, www.timformayor.com went live yesterday. Please visit the site and e-mail your comments to me. Tell your friends to visit the site. Make a commitment. Make a donation. You can do it on-line and nobody will ever know. It’ll be our secret! As the most non-endorsed “endorsed candidate” in the city’s history, I’d appreciate your support, even if it’s anonymous.

And, because my son-in-law told me to say so, I have to remind everybody that, yes, I’m a Realtor and we earn our living by completing real estate transactions, and we need your help. If you, or anybody you know, need the assistance of a competent commercial real estate company or broker, call or e-mail us. We specialize in property management, leasing & sales (and, yes, we’re “at least” competent). We’re now offering a new service – free appraisals of your commercial building. Call 719-630-2277 or Tim@HoffLeigh.com

A final story; this is about a tourist promotion that occurred in 1889. Some promoters got together and launched a steamer called the “Chicago”. It was about the length of Prospect Lake. Normally, you’d say, “Big deal! Steamers are launched every day” and you’d be correct. But, they launched this steamer in Prospect Lake for “excursionists”! Now that’s a creative solution to a tourism problem and, yes, that’s what I’m talking about!

Sincerely,

TJL
Tim Leigh
719-337-9551
Tim@HoffLeigh.com

March 14, 2010

2010-03-15T15:29:00.002-06:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer or Tenant Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
March 14, 2010

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $102.81 (UP 0.61 from last week)

We are currently tracking 83 office buildings for sale.

This is 789,600 square feet, which represents a total market value of $81,182,414.

All Market Average Industrial Building Sale Price PSF = $100.61 (UP 0.03 from last week)

We are currently tracking 61 industrial buildings for sale.

This is 772,903 square feet, which represents a total market value of $77,763,156.

To View Tim Leigh’s ad, please click below!
http://hoffleigh.com/Doc/Tim%20Leigh.pdf

To view our most recent Colorado Springs Business Journal Ad please click below

http://hoffleigh.com/Doc/3.12.10%20Colorado%20Springs%20Business%20Journal%20Ad.pdf

Tim’s Market Report

“If you don’t mind my saying so, there’s not a man alive who could hope to measure up to that blend of Paul Bunyan, Saint Pat and Noah Webster you’ve concocted for yourself out of your stubborn Irish imagination. . .”

The Widow Paroo

From “The Music Man”

As I sit here reviewing the inventory of office buildings for sale, (looking for deals), I’ve got to confess that unless you’re an owner-user, the “pickins-are-pretty- slim”. In fact, as I study the list and look at zip code and pricing data, it becomes clear that one of the problems we have in Colorado Springs is that most of our inventory seems pretty beat up. Many of the small office buildings (for example) that are for sale were constructed in the early 1980’s and have seen better days. Most are functionally and aesthetically obsolete.

I have a good example, and unfortunately for me, it’s a property I own on North Circle Drive. I had it fully leased for 5 years. The property was a cash cow - Moo! Moo! (And, yes; “Dang, I was smart back in the day!”) It not only threw-off milk, it threw-off chocolate milk! When the tenant vacated, (they outgrew the space), I was faced with the same dilemma many building owners will face . . . “to fix or not to fix? That is the question!” I decided to take my own medicine, (which I always do, and which is why my buildings are 100% leased), and did what I’d tell a 3rd party building owner to do; I fixed. So, at some great cost I totally remodeled the building “on spec”.

Over the years, I’ve developed and refined “Tim Leigh’s Theory of Commercial Building Occupancy”. It says “most small business owners no longer want a large number of private offices in their leased space; they want light, airy and open space and fewer private offices”. They want “cool space”. They want the acclaimed Colorado lifestyle. They want it at play and they want it at work. They want environment over function. Imagine why Starbuck’s works. It’s not about the coffee.

To remake Circle Drive “cool”, we removed walls and created new, open-space. We installed glass side-lights; new light fixtures; carpet, tile and blended-in as much of the existing infrastructure to create a modern, yet “retro-feel” as we could. (And, by the way, I would be happy to showcase this property and these ideas - just call me at 719-337-9551). I brought the building into the new millennium aesthetically and technologically and now it’s ready for re-tenanting and possible sale and likely, at a premium to the market.

My point is that until Mr. Market understands that he must do what I’ve done, he will languish and grow continuously more tired and weary. The predictions are for a summer swoon – for local real estate markets to get rough again. There are folks claiming that the housing spurt will burst when the 1st time home buyer’s credit expires and as the very large inventory of phantom housing stock (bank owned and not statistically accounted for) is placed on the market for sale. To combat this predicted general decline I’m advising my building owner clients to position their property, not as generic, but as “uniquely desirable” property. For many, that will be a tall and costly order; for others it’s “out of the game, Bob!”

Want more pain? There is enough vacant space in Colorado Springs right now that it will take 25,000 new employees to fill it. Basic laws of supply and demand dictate that, without new employers and attendant new employees to occupy space, lease rates will continue to fall. If lease rates fall and if operating costs rise (which is how the game works), equity disappears and you can make some pretty accurate assumptions about value, pricing and pending foreclosure actions. There will be blood. There will be a summer of discontent.

I was a highway man. Along the coach roads I did ride; with my sword and pistol by my side.

Many a young maid lost her baubles to my trade; many a soldier shed his lifeblood on my blade;

The bastards hung me in the spring of twenty-five, but I am still alive . . .

We used to look at pricing scenarios where rents increased and with effective management you could operate small commercial buildings for profit. But, during the past decade of irrational exuberance, we all paid too much. Now, there is mass deleveraging taking place and to my point, as this occurs, if the deleveraged property is “not cool” it will depreciate further, pulling the market down and down and down.

I was a dam builder across the river deep and wide, where steel and water did collide;

A place called Boulder on the wild Colorado; I slipped and fell into the wet concrete below.

And they buried me in that great tomb that knows no sound; but I am still around . . .

I’ll always be around . . . and around . . . and around . . . and around.

And, as we’ll all be around and around, rest assured, there’s nothing new under the sun.

For example, as we wrestle with the problem of homelessness, (and let’s be honest, fighting 1st impressions is as large a part of this issue as how to help those folks), recall back to 1871. When Queen Palmer first arrived in Colorado Springs the story goes, “she was depressed by El Paso County’s scraggly graveyard which looked as though it belonged to Colorado Springs and was the 1st thing hopeful immigrants saw on incoming trains. It had 300 graves which seemed a great many for a town 3 months old.”

Or consider medicinal cures . . . In 1874, Colorado Springs, (a “dry-city” which meant that it was illegal to drink inside the city limits), had “twice as many drug stores as were needed to meet the demand for drugs.” Hmm . . . That sounds vaguely familiar. Their main business was selling whiskey – for medicinal purposes, of course. By law, each druggist was the judge of medicinal purpose. Naturally, if a customer said that he was ill because he needed a drink, the druggist was legally bound (because he was a druggist) to provide the “medicinal cure”, even if – or perhaps especially if - the patient staggered up to the “medicinal purpose counter” suffering from delirium tremens.

And there was the story about “The Spiritual Wheel” at the southeast corner of Pikes Peak and Tejon. At the corner was a fine piece of real estate; uniquely positioned to take advantage of the market opportunity created by the new “medicinal cures” industry. It was a storeroom with nothing in-it except a hole in the wall containing a partitioned tray turning on a wheel. If someone wanted a drink, he’d place a coin on the tray, the wheel turned and a jigger of whiskey miraculously appeared on the tray where the coin had been. What a country!

I fly a starship across the Universe divide; and when I reach the other side

I’ll find a place to rest my spirit if I can; perhaps I may become a highway man again;

Or I may simply be a single drop of rain, but I will remain

And I’ll be back again, and again, and again and again.

Nothing ever changes and the real estate market will recover and we’ll be back again . . . and again . . . and again.

Make it an interesting week.

Sincerely,

TJL
Tim Leigh
719-337-9551
Tim@HoffLeigh.com

March 7, 2010

2010-03-15T15:13:00.004-06:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer or Tenant Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
March 7, 2010

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $102.20

We are currently tracking 91 office buildings for sale.

This is 883,196 square feet, which represents a total market value of $90,262,414.

All Market Average Industrial Building Sale Price PSF = $100.58

We are currently tracking 62 industrial buildings for sale.

This is 776,103 square feet, which represents a total market value of $78,058,156.

To View Tim Leigh’s ad, please click below!

http://hoffleigh.com/Doc/Tim%20Leigh.pdf

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/3.05.10%20Colorado%20Springs%20Business%20Journal%20Ad.pdf

Tim’s Market Report

I had coffee with Mr. Bad Banker again this past week; you know the one – last week he told me “it was certainly the end of the earth”. Why I met with him again, I’ll never know. I guess I’m a glutton for punishment. He reiterated his belief to me this week when he said, in his quiet but commanding & condescending voice, “The big houses (then I wondered who the “big houses” were) said that we should expect a 5 year time-line to recovery. The smart money is bailing-out of commercial real estate for the foreseeable future unless they’re very patient.” Fiddlesticks!

I’ll grant that the big houses (the big boys; the big shots;) may feel that way, and in fact, institutional-grade investment property may have a long time to recovery, but “our forte is local folk” and I’m here to tell-ya, that while the local market’s not robust, it ain’t the end of the earth.

And to my point, I was asked to provide some advice to a friend who is considering buying property on a multi-generational basis for a large non-profit. She wanted to know if we were at the bottom of the market or “should they wait-to-buy?” “Dang”, I thought, “If your time-line’s 100 years, who cares?” It seems to me that the people who care about micro-managing the market are traders and speculators; not investors who have well located property situated to weather-the-storm.

I told her, “A smart guy once told me that all real estate transactions happen because of 1) fear or; 2) greed.” Want to tell where the market is? How do you feel? How you feel will tell you exactly where the market is. Afraid it’s going to go down? Then you’re a Seller. Greedy that you’re missing the bus? Then you’re a buyer. Like most stuff in life, it’s that simple.

Then I got the latest information from the assessor’s office. According to their report, 18 commercial buildings sold in February. Their combined square feet were 382,144 and they had a total value of $20,799,200. That’s an average sale per building of $1,155,511. In those sales were 3 of those “institutional-type” sales that aren’t supposed to happen for 5 years. Hmm . . . .

Now, most of you know that our company cut-its-teeth on, and does more deals in Class B & C buildings than our competitors. We currently enjoy about a 36% market share in our space – I know; thank you! That’d be called, “There ain’t no magic at 4:00 o’clock in the morning!” (4:00 o’clock is where you find hard work & elbow grease!) We’re the guys who handle the bottom 80% of the market. So, as I noodled over the assessor’s numbers, I did a little calculating of my own. If you take away the 3 institutional sales, the story’s dramatically different. In reality, “our market” sold 15 buildings totaling 61,585 square feet in February. Their total sales value was $10,499,200 (about ½ the assessor’s reported total), which is an average price per building of $699,946. Hmm . . .

So, how’s the market? One answer comes from Virgil McCormick who always told me, “Figures lie & liars figure.” How’s the market? What numbers do you want to believe? Are you fearful or greedy?

And from the candidate’s desk; last week was a whirl. I’ve continued my process of meeting individuals & small groups; so if you or your small group would like to meet to “discuss the issues” let me know. I started asking for support and campaign contributions. (Unfortunately, it’ll cost a lot to run this campaign and yes, it’s OK to say you support my candidacy and it’s OK to send contributions! You can go to www.TimforMayor.com to learn more.

I met several folks from around the state including the Executive Director of the Colorado Municipal League (Sam Mamet) and Mayor Hutchinson from Ft. Collins. Seems like common sense that our city should be linked with like-minded folks up and down the front-range. That linkage can create unexplored opportunities for collaborative cultural and business ventures which could cost little and provide great benefit. Over the course of the next several weeks, I hope to meet Pueblo’s, and other leaders along the lower Arkansas River Valley with whom we share many common interests.

I received a short-course in Budgeting for Outcomes. That we don’t seem to do this now seems a little nutty. I’ve read that currently, our process is “input budgeting” where we add-up all the wants and desires of each department and then try to raise revenue to pay for everything. That process produced an expected $33,000,000 shortfall in the next budget cycle and leads to the idea of tax increases; and I learned that we have (approximately) a $50 million unfunded health insurance liability for retirees and I learned that we have (approximately) a $65 million unfunded retirement liability. I learned about article XI of the city charter, paragraph 11-30, which states “All municipal elections shall be non-partisan.”

And I was asked several times last week to make campaign promises. So finally, succumbing to your requests, in typical politician-style, here you go: “If elected, I promise to do the following 3 things: 1) conduct the symphony; 2) be the Grand Marshal in a parade; and 3) learn to line-dance!” Frankly, that’s about the best I can do with a straight face.

Seriously, it’s my contention that one of our problems is we expect too much from our elected leaders. “Honest” elected leaders don’t have wands sufficiently filled with magic to solve individual problems. We should expect our leaders to lead; we should expect our leaders to ask big questions, think big thoughts and lead the bureaucracy out of the way so the invisible hand of Adam Smith can do what it does. That’s the only magic we need. Oh, and maybe some of that stuff you get at 4:00 o’clock in the morning.

Have a profitable week.

Sincerely,

TJL
Tim Leigh
719-337-9551
Tim@HoffLeigh.com

March 1, 2010

2010-03-01T09:44:00.002-07:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer or Tenant Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
March 1, 2010

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.
Because we are still cleansing our various data-lists, the all Market Building information will not be included in this week's email. We hope to resume providing the data lists in the next week or so.
To View Tim Leigh’s ad, please click below!

http://hoffleigh.com/Doc/Tim%20Leigh.pdf
To view our most recent Colorado Springs Business Journal Ad please click below

http://hoffleigh.com/Doc/2.26.10%20Colorado%20Springs%20Business%20Journal%20Ad.pdf
Tim’s Market Report
I’ve been gazing through the window at the world outside, wondering if we will survive.
After all there’s only just the two of us, and here we are, still fighting for our lives.
We’re watching all of history repeat itself, time after time after time.
Adopted from “Dreamer”
Ozzy Osbourne

Is it OK for 2 old men to hug? I ran into one of those awkward moments last week. I went to 2500 North Circle Drive, the former “Global Headquarters” Building that we’re remodeling-on-spec to sell and Richard wasn’t there. Richard is one of my long-haired, hippy-type guys who paint for me. He’s normally, on time working hard and normally toked with the medicinal marijuana he uses to defeat the pain from his stage-4 cancers. He wasn’t there last Tuesday, but his brother Sonny was. (Sonny’s the one that drives the truck and rides a Harley). Sonny said Richard won’t be back. Sonny’s eyes welled and I felt an intense wave of dark sadness wash over me. We hugged. Damn, I’m going to miss him.

After all, there’s only just the two of us, and here we are still fighting for our lives . . .

And I ran into one of my banker friends last night at the CC hockey game. He bragged that he’s one of the most successful bankers “still playing” in Colorado Springs; said he’s “makin-loans!” (And, yes, that’s an anomaly!) He said every time the music stops, he’s been able to grab-a-chair. The word is that a lot of his brothers will be looking for new places to sit as winter warms to spring and spring heats to summer. Ah, the games we play. . . Hey, who stopped the music?

I’ve been gazing through the window at the world outside, wondering if we will survive . . .

And he says the other shoe is about to drop. His story is, “Those darn commercial real estate agents sold Mr. Small Business down the river” when, as they puffed their big cigar and slapped him on the back, they advised “Well, well, well . . . . . buy the bigger building; you can rent-out the extra space and make a ton-of-money! Heck, at the very least, Mr. Somebody Else will pay for your building! . . . It’s the closest thing to “free” that you can find! Don’t miss this chance; it may not come-round this way again!” The only trouble is; Mr. Somebody Else went broke. Now Mr. Small Business, without Mr. Somebody Else’s rent can’t afford his building.

And now, because there’s no harmony in the marketplace we’re on the verge of a new Cachephonus foreclosure tsunami. Mr. Small Business drank the Coolaide; he listened to the music; dreamed-the-dream; played 1st Fiddle in the band and bought the building. Now he’s being hit with a hard dose of the reality that comes slowly & insidiously wave after wave, one after monotonous other, after another. It’s a slow moving train and that light you see is not at the end of the tunnel. No, “There are no fish under the ice.” There’s no Mr. Somebody Else; there’s no extra rent. And while my banker friend blamed fast talking, quick drawing commercial real estate gunslingers, I blamed the banks and their lending policies. We had a 12 year run before the conductor left the stage with tired arms. I guess we’ve all learned that nobody can wave a conductor’s baton forever.

We’re watching all of history repeat itself time after time after time . . .

And speaking of gunslingers, I managed to score 2 points on Seth Kelsey and 3 points of Jimmy Moody. Seth and Jimmy are our Olympic hopefuls for Fencing. They invited me to visit them for some one-on-one training at the OTC. Let’s see, hmm . . . I spent 30 minutes on the Stairmaster in the morning; 45 minutes at the SoCo Cross Fit gym with Kevin in the afternoon and an hour with the National Fencing Team. Hmmm . . . Don’t tell the fetching Mrs. Leigh; she’ll think I don’t work! (And you know better, so don’t even think of saying it!) Seth is a 6-time National Champion who graduated from the Air Force Academy and Jimmy was the captain of Penn State’s 2009 NCAA Championship team. Scoring points, I immediately asked if they felt I could make the team. They said no. But, I think they said no, not because I couldn’t, but because they only take 2 fencers and, well, you can draw your own conclusion. . . Thanks guys! I’m waiting for the call for the rematch!

Now, “Consider if you will”; If you’re reading this, (aside from looking for prescient information about Colorado Springs commercial real estate), you’re looking for information about my announced-candidacy for Mayor. As I’ve previously reported, I’ve been meeting with department heads, enterprise managers and city leaders to find out (not to steal a line) “how we’re all connected.” I’ve been learning how we drive-the-bus. It’s been like driving the skid-pad at Master Drive. I’ve been trying to learn how to keep us out of the ditch and moving-on down the highway!

And yes; yes; yes, I finally attended my 1st City Council meeting. And as I sat in the front row, a soft whisper kept ringing in my ears, “You’re traveling through another dimension; a dimension of, not only sight and sound, but of mind; a journey into a wondrous land where boundaries are that of imagination; your next stop – The Twilight Zone!”

There were 3 major issues discussed; the enactment of proposition 300; the homeless and medical marijuana. While I won’t comment on the outcome of the various discussions, I will say, with deference to slight understatement, “Everybody was thoroughly engaged”.

There were a couple of folks who must have been hoping that the cable feed was being sent to Fox; to the “No Spin Zone” where they could be noticed as “Bloviator of the Day.” If I were king of the world, I would refer back to the Rules of Procedures, Part 2, paragraph 1.(4)(e.) and limit individual speaker input to 3 minutes. At council, while you need to hear the electorate, there’s no need to be subjected to bloviation. (Dang, that’s a great word!)

And here’s a small secret (just between us); I used to “run” a crew of construction workers who I hired from the homeless shelter. Back in the day, we actually worked hard and made money. I always got a kick out of “the guys” because they always bragged that “I went to college” (and secretly, I liked how they addressed me as “Mr. Tim”. From that, “Mr. Tim” is what my kids are threatening to teach my grandbaby to call me and hey, I’m just saying, that sounds a little weird!) I guess saying “I went to college” was their statement, hoping for some kind of redemption. So, I was not surprised when one of the homeless guys stepped to the podium and, after apologizing for not being professional, made some quiet reference to his college experience and then went-on to read a statement akin to Hamlet.

And the pot-guys? Too funny; let’s see. Hmm . . . I have personal experience with this issue. See paragraph 1, above. I was also around pot as a youngster (just as a spectator, mind you). [Now, in case you haven’t noticed (and follow me here)], I have started branding our city as “The Sports & Wellness Capital of America.” But, now with the revelation of how sick we are (and we must be as evidenced by the fact that we require medicinal-marijuana-dispensaries on every corner), I’m afraid we’re going to have to rebrand ourselves. Now, I’m a private property rights kind of guy and I wish them well, but let’s not delude ourselves.

Last week, I wrote that there is so much vacant space in our market that it would take 25,000 new jobs to fill that space. The good news is that in spite of the insanity, there is good news. The EDC held a press conference to introduce Prevailing Power’s move to Colorado Springs. Prevailing Power’s currently headquartered in Shenandoah, Iowa, in a 92,000 square foot plant. They’re moving to Colorado Springs, not because of financial inducement, but because we held-open our arms and welcomed them to our family; they recognize our quality-of-life, our high-quality work-force and that we’re a land of low taxes and great opportunity. Steve & Pam Stultz (the principals) and I met privately and discussed their strategy. It’s impressive. They told me they had to get another phone number because orders for their wind turbines have been so robust that they can’t field the calls. According to the reports, this could be a business with national implications whose employee base could exceed thousand(s).

Dare I dream big dreams? Dare I think big thoughts? Prevailing Power’s announcement is a great start; but it’s only a start; it’s a 1st step in a journey of a thousand miles.
And congratulations to all for making that 1st step happen and to Steve & Pam - welcome to our Casa. Now, next . . .

We’ve been through, and will continue to suffer through some dark days; what I call a collective, deep blue funk; the slough-of-despond. But, we’ll get through this; we have smart folks working to solution our city’s problems and much like childbirth the result will be worth the pain.

Sincerely,

TJL
Tim Leigh
719-337-9551
Tim@HoffLeigh.com

February 21, 2010

2010-02-22T11:13:00.001-07:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer or Tenant Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
February 21, 2010

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

Because of our goal to cleanse our various data-lists, the all Market Building information will not be included in this week's email. We hope to resume providing the data lists in the next week or so.

To View Tim Leigh’s ad, please click below!
http://hoffleigh.com/Doc/Tim%20Leigh.pdf

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/2.19.10%20Colorado%20Springs%20Business%20Journal%20Ad.pdf

Tim’s Market Report

Thomas Pain once said, and I paraphrase, “These are the times that try men’s souls.” He said the summer soldier will, in time of crisis, shrink from the service that’s required of his fellows and that “tyranny, like hell, is not easily conquered.” But, he said, “We have this consolation, that the harder the conflict, the more glorious the triumph.”

And in my travels across the city over the course of the past week, I’ve begun to really discover the nature of the conflict. I was, once again, reminded of personal battle after personal battle; personal struggle after personal struggle; jobs lost or in jeopardy; futures and lives hanging in the balance. And in the back of my mind, I kept hearing an echo - the words from The Little River Band “Hang on, help is on the way!”

And I took a call from a local TV Station; they wanted an interview. Said they wanted to know, “Did I really think it was the end of the earth? Are we “at the bottom”? Is there any milk & honey in the forecast?” Those were such big questions, I felt compelled to call on a higher power. You know, like “Who wants to be a millionaire?” So, I called one of the brightest commercial real estate minds in Colorado Springs (Paul Turner) who provided the following, some of which is paraphrased and some of which is quoted:

2009 was the worst in history for the Colorado Springs Commercial Real Estate Market. (Gee, thanks for that!) Over 1.9 million square feet of occupied space was lost. (Ah, Bob - that’s where the tenant moved-out!) The total amount of vacant space jumped to over 10.6 million square feet and the vacancy rate noodled-up to an 18 year high - 13.1%. (Those numbers would be worse if you included 443,180 sf of sublease-space and “for sale only” properties.) And, hidden inside the number is a startling fact – to fill our currently available vacant space we need 25,000 new jobs! If you presume that with each job you get a husband; a wife and at least 1 kid; and maybe 2 dogs or a cat; or a turtle or a bird, that’d be a population gain of 75,000 or nearly a 15% increase in our city’s population and an attendant new, need for garbage cans in the parks.

Turner said, “After experiencing the “worst commercial real estate market in 18 years,” it might be prudent to predict that 2010 will show signs of improvement for the Colorado Springs area. In fact, many economists and real estate experts have already forecast “cautious optimism.” However, assuming that “things can’t get worse” is not a prelude to the beginning of a recovery. The “jobless recovery” being touted by the government portends no good news for commercial real estate.” (Employees fill empty space; no employees; ergo; no recovery for commercial real estate.) Oh, and by the way, the majority of the 2.4 million square feet of total leasing activity recorded in 2009 was negotiated at prices well below published, asking rates.

So, what’s the outlook? If you’re a commercial building owner, surviving 2010 will involve retaining your tenants through aggressive rent reductions; and be aware, other building owner’s aggressive pricing, free-rent and other incentives will lure your tenants away. (And, by-the-way, if you’re not listed with us, be afraid – be very afraid!) Vacancies will increase (the historic high was 15.4% in 1990), and occupancy levels will remain negative. Sales of improved properties will continue their free-fall to historic lows and more banks will continue to become reluctant Landlords. (Anecdotally, and this is something you will want to know - in 2009, the 138 commercial properties that sold, sold at prices that had declined by 25.5% over 2008’s prices; ($85.07 vs. $63.35) per square foot.) Ugh!

It’s most likely that asking prices (rents & sale prices) have yet not dropped far-enough to attract “bottom-feeders” like we saw in the early 1990’s. In 1993, for example, 10.2 million square feet of commercial property sold for an average of $25.00 psf. That’s not a misprint. Conversely, 2006 was an “investors’ year,” where 11.4 million sf sold for $103 psf.

So what’s a mother to do? “Become one with the golf ball, Happy.” The bottom hasn’t been reached. If you own a building, be prudent and do the deal that’s before you; and by the way, be on the lookout for new deals. Remember what Dr. Kochtu taught us at UND, (or, wait, did he? That darn Frenchie Bar! My mind gets so foggy!) “Buy when the blood’s flowing in the streets!” And the blood is about to start flowing. Last week I was told that in the next budget cycle, there will be another city-budget-deficit of nearly $33,000,000.

Folks, these are the times that try men’s souls, but help is on the way.

And if you’re interested in speaking about commercial real estate or my political travels, give me a buzz or email me. I’ve continued on my sojourn through the city bureaucracy and have been learning some very interesting things.

Written from Colorado Springs, Colorado
The Sports & Wellness Capital of America

Sincerely,

TJL
Tim Leigh
719-337-9551
Tim@HoffLeigh.com

February 14, 2010

2010-02-15T09:23:00.003-07:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer or Tenant Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
February 14, 2010

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $107.27 (UP from $105.38 last week.)
We are currently tracking 155 office buildings for sale.
This is 1,604,443 square feet, which represents a total market value of $172,108,297.

All Market Average Industrial Building Sale Price PSF = $83.65 (UP from $83.46 last week.)
We are currently tracking 139 industrial buildings for sale.
This is 1,642,245 square feet, which represents a total market value of $137,379,756.

To View Tim Leigh’s ad, please click below!
http://hoffleigh.com/Doc/Tim%20Leigh.pdf

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/2.12.10.pdf

Tim’s Market Report

The commercial real estate market continues to be spotty in Colorado Springs and because I want to believe, I keep reading the mainstream press that claims “The Great Recession” is over. However, the sub-culture stuff I read tells a different story. Most of the guys who really study this stuff, and who don’t write for the main-stream, say that we will look OK through the 2nd quarter, 2010 then all-heck will break-loose. They say we’ll see the effect of the banking crisis when it hits commercial property as loans reset and we experience the illiquidity caused by the Fed’s rules and policy. They claim buildings will be foreclosed and prices will drop. Of course, after having said that, last week we closed another small building sale and wrote several leases; it almost feels like old times.

It feels like activity levels are picking up and in fact I have several buildings that are 100% leased. (The only problem is; “they don’t know one note of music!”) - They’re running only about break-even, because of continually declining rents. And of course we’ve seen more than our fair share of dispensary’s & growers looking for a “spot-for-pot”.

And is it just me, or is that the scratchy feeling of noose being tightened around my neck?

A friend of mine called from The Citrus State on Saturday to forewarn me of pending rule change to existing law that impacts everyone who owns single family investment property. He said the government’s got a plan up-their-sleeve that says “If you want to sell your single family residential investment property and “carry-the-note”, you’ll have to become a licensed mortgage lender. OK; pause and think that one through. I know; I said it too, but I can’t write it.

Here’s how it works: Mr. Investor buys a single family fixer-upper (SFFU); fixes it and now wants to flip-it. Unfortunately, the normal buyer for said SFFU is not qualified for a regular loan. So Mr. Seller snaps his suspenders, blows a few smoke circles from his big cigar, slaps his new, good buddy on the back and says, “No problem Billy Bob! I’ll carry your mortgage.” Not so fast say the Feds.

Apparently, there’s been so much fraud & corruption in the lending industry (Oh, really? I thought we called that WAMU, B of A, ACORN, Fannie or Freddie, etc., I mean; what?) that we can’t allow that transaction anymore. Our father in Washington is telling millions of small, real estate entrepreneurs, “You’re out of the game, Brotha! If you want to “sell & carry-the-note”, forget-about-it!

OK, think about the millions of small houses from Detroit to Phoenix that will only sell with owner-financing and the millions of buyers who can buy, only with owner-financing. Hmm. . . I wonder what genius thought of this. (By the way, don’t believe me? You can find the citation in the Federal Register, Volume 74, No. 239). Fight this! Call your congressman before Tuesday. They take comments until then. After that, we’re screwed.

If that’s not insulting enough, here’s another new rule that should make you mad as hell. Our father in Washington says if you own a house that was constructed prior to 1978, (including your personal residence), if you do any work on that house and disturb more than 6 square feet (that’s an area of 2’ X 3’) on the inside, or 20 square feet (2’ x 10’) on the outside, you’ll need a “certified lead based contractor” to do the work. No kidding! Your certified lead based contractor will have to construct an encapsulation chamber, inside of which, (and only inside of which), you can do the work. I think my brain just exploded!

The story is, lead based paid was used years ago; it was sold as “renewing” paint because when it got wet from washing or rain, a thin veneer fell off and it looked fresh; it looked new. It was a great marketing pitch. It was used on tract homes and in the cities. Unfortunately, well after the fact, someone fed a small dose of lead based paint to some cute, little-furry-mice who ultimately died; presumably from lead poisoning and not choking. (I don’t know about you, I normally munch potato (not paint) chips with my beer and so I don’t feel much risk from this and I certainly don’t feel like I need Big Brother watching my back on this one.)

So, let’s say you own a pre-1978 house (this could be an SFFU or your personal residence) and you want to have the exterior painted. The painting crew shows up to prep-the-surface. Zoom, zoom. The miracle of water under pressure washes away the dirt, grime and loose paint. Life is good; Oops; until some of those darn paint chips fall onto the ground. Dang; unless you had a certified lead based contractor do the work, you could be in violation and subject to a large fine. (That would be called taxes – oh, yea; now I see it.)

Stop the insanity. Contact your congressman. Tell him to get to work and quit-goofing-off. Tell him to quit reading Mad Magazine and start paying attention. There are rules being made that none of us are even aware of, unless we receive forewarning from the Citrus State. If you want to talk about this, call me, 719-630-2277 or email: Tim@HoffLeigh.com.

And now, if you haven’t read the Business Journal or the Gazette in the past few days, or if you’re living along Fountain Creek and haven’t had time to peruse the Library’s newspapers because you’ve been busy packing, I’d like to let you know (confidentially, of course) that it’s official. I tossed my hat into the Mayor’s Ring. Yup; I went to the city clerk’s office and quietly dropped-off the form that makes me an official target. And it didn’t take long. From the Gazette’s blog:

“Just what we need; a real estate guru as mayor.” Now, I took this guy’s comments as a compliment; after-all, one of my personal goals has always been to be a guru. In fact, there’s a guy in town who can catch a bow-shot arrow with his hand, mid-flight before it hits his face. He's a self described guru and offered to teach me the tricks of the trade. But I digress. .

And here’s another, “Real estate people drove this town into the ground to begin with. He might as well finish us off.”

And another; “Can’t wait to see who endorses Leigh . . . that will be a good indicator as to what his agenda will be.”

And another; “First a bunch of developers and now a real estate guy; you just can’t win.”

And finally; “Please, no real estate developers on our city council. They created this mess in 1st place. I am sure his agenda is motivated by financial gain for himself!”

I guess at $6,250 per year, I’m in it for the money!

On my trek, I continually have the chance to meet bright people who truly care about the city. Last week, for example, I met the Fire Chief. What a great guy. He’s a local guy who grew up in the system. We are lucky to have him. He showed me his version of Tabor’s ratchet-down-effect and explained that if our budget deficit is about $30M next year, even if we have the perfect sale tax increase scenario in the ensuing 3 years, we’ll only recapture $10M in the following year and only $5M in each of the succeeding 2 years. Houston – (I know, you’ve heard this before) – we have a problem. Our budget is on a collision course with disaster. The chief told me that, efficiency, economies-to-scale and salary cuts notwithstanding, we need to fix a larger problem. And, he promised me a free T-shirt! Like I said, “What a great guy!”

And I met with 2 separate, credible individuals who confirmed there’s a swimming pool manager floating around earning $85,000 a year. (Hey, I want that job! It pays 13 times as much as the Mayor’s job!) And, if that’s not nutty enough, (because, come-on, how much should that job be worth, really?), she has 2 assistants – each making $55 grande. And now that I think about it, I might really want the assistant’s job instead. Less work, less responsibility and still - pretty darn good pay.

And I met with the Utilities guys. I think they’re great guys, too; so far. They unveiled a plan they concocted for the city’s benefit (ah, that would be our benefit, Bob). They explained why they can’t give us “free” water for the parks. It has to do with bond ratings and ultimately if they did give us “free” water, it would be very expensive. They’re hampered by rules promulgated at the state level. But the good news! The parks are going to be watered! The utilities guys have worked a deal with the parks guys to conserve water and by being creatively thinking outside the box, the parks guys can budget their water costs for about 75% of its norm and we get green. That’s a huge win for all of us. Way to go team! This is a 1st step!

And I met with Dee Cunnigham. She’s the lady who supervises the work-release guys that pick-up the highways. She runs Keep Colorado Springs Beautiful. Her annual budget is $45,000. To replace the work her organization does would cost us double if we couldn’t use her “volunteers”.

Since January 2009, her organization has removed 40 tons of trash from roads and city property and 32 tons of trash from homeless camps. She uses 321 “volunteers” (ah, that would be jail-birds, Bob); and has spent nearly 7,000 hours keeping our city beautiful. She’s been told her program has to go. Hey, here’s an idea. Let’s verify the pool manager’s salary; let’s unload just 1 assistant and keep Dee’s program. Let’s keep the city beautiful. Hmmm. . .

Keep it real,

TJL
Tim Leigh
719-337-9551
Tim@HoffLeigh.com

February 7, 2010

2010-02-12T10:22:00.003-07:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer or Tenant Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
February 7, 2010

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $105.38 (UP from $105.30 last week.)
We are currently tracking 155 office buildings for sale.
This is 1,643,325 square feet, which represents a total market value of $173,168,297.

All Market Average Industrial Building Sale Price PSF = $83.46 (DOWN from $84.46 last week.)
We are currently tracking 144 industrial buildings for sale.
This is 1,670,899 square feet, which represents a total market value of $139,461,256.

To View Tim Leigh’s ad, please click below!
http://hoffleigh.com/Doc/Tim%20Leigh.pdf

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/1.29.10.pdf

Tim’s Market Report

America was built on courage, imagination and unbeatable determination.

OK; Ok; here’s the big news. I’m going to . . . be a grandfather! (Fooled you! and I know what you’re thinking!)

No kidding. The 1st Grandbaby is scheduled to arrive sometime this summer. I told my daughter that she is surely going to be the most bronzed young lady on the planet – something about a pregnant woman’s production of melatonin. . . And I told her that it’s likely that hers will be “the baby with no skin”. It will be so fondled and fawned-over that I don’t know how we will keep its skin from rubbing right off its arms; and legs; and back and tummy!

Those of you who know me know that I have a story for about everything. I guess that comes with age and experience. So when Shannon was about 6 months old, the Fetching Mrs. Leigh insisted I buy a piano ($600 that I didn’t have!). She was convinced that Shannon would learn to play the piano and we had to have one, “now”. Along that same thought line I’ve already been asked if I would re-build “The Big Green” for the 1st Grandbaby.

When my kids were about 3’ tall, I built an athletic field about the ¼ the size of a regulation football field. (And when they no longer used it, I let it go back to nature in deference to my decidedly green self.) It came fully equipped with every toy, including a trampoline without safety devices. Years after the fact, I was told about all the kids who flew off, normally striking head-first! I shudder thinking about it! And we had good times on The Big Green creating great memories. Personally, I was The Captain of the lawnmower until Holly discovered it and it became her 1st convertible. (I know!) But, seriously; mowing that Big Green took me back to a peace I felt as a kid; working in solitude in wide open acres upon acres of amber waves, thrashing dry, golden grain from the hot, dusty, high desert prairie of North Dakota, as daylight drew its shadow to dusk in the quiet evening in the early part of autumn. Hmm.

With fond memories, as you imagine (and yes, I’m a sucker for my kids) - of course, I promised to re-do The Big Green; and of course this iteration will have to be bigger, better, wider and longer and in general “a big deal!” And in the design, we’re planning to re-incorporate a “new” Bob-Sled (and slippery-slide) run into the shady areas. I calculate that I can stretch it to something like 225 feet. The fully-iced course will have curves, turns, a sharp drop, a flat runway and a jump at the bottom and spectator seating in the play house for those who prefer to imbibe and not partake. Gee, now that I describe it, I’m not sure who I’m building it for; the 1st Grandbaby or the adult children of an adult with ADD. Well you’re all invited! But, be forewarned, reservations will be suggested.

So how the heck is the world anyway? It’s hard to really know given all the noise in the marketplace. But, I’ve read some interesting articles and heard some interesting stories this week, and from my reading and listening I get mixed signals. From Bank Credit Analyst’s monthly forecast I learned that smart money is betting on low inflation and moderate growth in the economy (which is contrary to my belief that we’re heading for a significant inflation). Of course they have legions of highly paid staff working on the collection and analysis of data to support their prediction. I merely have Google and the Fed’s own charts which show a “government-gone-bad” with spending.

And, on the other hand, John Mauldin’s Weekly E-Letter says “not so fast”. He says there’s still reason to be cautious in spite of an impressive, recently reported GDP growth of 5.7%. He says, “Over 60% of the growth came from inventory rebuilding and GDP growth will only continue if sales grow”. And, he says, “If you look at consumer spending, (hiding in the details, which is where the devil always hides), you’ll find that consumer spending has actually declined.” The theory is no sales, no growth; no growth, slumping stock prices; slumping stock prices, loss of confidence; loss of confidence and “here we go again.”

We’ve been doing marginally better at the Global Headquarters. This past week I wrote a couple of small sale contracts and closed a sale and we have a plethora of new leases in the pipeline in various stages from initiation to closing. We’re off to a much stronger start than last year (mercifully & thankfully) and I’m generally optimistic. And the way I normally report that it’s the end of the world, hearing this, you should feel pretty good too. (However, let’s not get crazy; and remember that we just wrapped-up the worst year in commercial real estate in the past 70 years. We have some way to go. And you know what? I’d like to hear from you. How are you doing? Please let me know at Tim@HoffLeigh.com).
On the local political scene, you may have seen the article in the Gazette. I was appointed to the Commission to study Memorial Hospital and whether or not it should be part of city government. Should we sell it? Should we keep it? Should it produce income to our general fund? Are we more greatly liable for any bad stuff than beneficiaries for good stuff? What is the role of government in providing health care? These are all good and interesting questions. And as I mentioned privately to Memorial’s CEO, I will do my best to live up to expectations, learn what the issues are and recommend accordingly. I told him that if we work together we can accomplish great things. And I believe that.

The article went on to describe me as a “potential” candidate for Mayor. You can now remove the word “potential” from that description. I plan to file the formal papers later this week. (Yes; you can now call and offer congratulations or condolences!) In that role, (as a candidate with no bearing or standing), I met Denver’s Mayor Hickenlooper last week to find out what the channel of communication is like between our cities, and to find out if it’s possible for us to work together on economic development, cultural exchanges or other business and political issues. Mayor Hickenlooper was very receptive & encouraging and I’ve already scheduled another meeting with his advisor on regional cooperation.

Confidentially: I hope to meet with Pueblo’s Mayor soon, too; and frankly, I hope to engage Mayors from across Southern Colorado with an event billed as The Southern Colorado Mayor’s Conference on the theory that (let’s repeat this) “together we all get more done” kindly referred to as “GMD!” Yes, I know that’s a reworked version of a tired cliché, but it’s true; together we all accomplish more. And I know that I have no bearing or standing, but dang-it; someone’s gotta step-up so I decided what the heck? I’ll grab the bull by the horns. What’s the worst that can happen? A light gorging; hey, I’ve been selling real estate. How bad can it be? LOL!

Over the course of the past week I’ve met with many groups and individuals. I had one guy tell me “We’re a city with no soul!”; another told me the solution to the homeless problem is the same one (today) as they used in the 1970’s – bus tickets & motel vouchers (seems like nothing ever changes); and by the way, when the homeless were put-up in motels in the 1970’s; afterward, the government got the opportunity to pay nearly $300,000 in renovation costs. Hmm. . .

I was told we should brand ourselves as the health & fitness capital of America (can’t argue with that, much); I actually suggested we initiate a new bike race. (We could actually host more than one – I know; but think big with me for a minute!) We could call it “Tour de Colorado Springs” or something like that. (Did you know that Wisconsin earns nearly $1.5 Billion in annual sales from bikes and bicycling events and they don’t have the OTC and they don’t have USA Cycling and they don’t have Carmichael Training or Colorado Cyclist); and I was told that the city budget crisis we’re facing is real. I was told how embarrassed some folks were by Diane Sawyer who reported on national news that we’re shutting-off 40% of our “traffic” lights; not mowing public lawns and not watering parks. (At least she could get her story right; we shut off street lamps, not traffic lights!) And I had several people seek me out, looking for an opportunity to become involved. What a mixed bag.

Mostly, I found that most people care deeply for our city.

For example, Mike Trapp who owns Olson Plumbing said if the city can’t afford to do so, he’ll volunteer to pick-up the trash from America the Beautiful Park and Monument Valley Park - every day. He’s sure there are other company’s who would likely follow suit. Randy Monroe, who owns LX Printing, volunteered to keep flower beds in some of the city medians. These are citizen conversations with a guy with no standing or bearing. And how do you start rebuilding a community? How about 1 conversation at a time?

And cry went forth across all the land. . .

It is darkest before dawn and now comes a man with no bearing or standing. A man from the prairie of North Dakota to the foot of Pikes Peak to proclaim that there’s a new day dawning in Colorado Springs. Yes we have a lot of problems; and yes many of them seem insurmountable; but they’re not. I know they’re not because I’ve discovered a pent up “equity of intelligence & passion” buried in the minds and souls of our citizenry; a citizenry who wants to become involved and yearns for positive change.

Folks, we have to realize that if we continue working with outdated dogmatic ideology, we lose. But, if we change the way we look at the world; if we change our lens & filter; if we change the way we work with each other, leaving our predilections & prejudices at the door; and if we engage and approach problem solving collaboratively, we can solve big problems and accomplish great things.

We can’t live with the politics of old because old paradigms don’t work in an ever-changing global marketplace.

We have to live with politics reinvented. We have to rethink the role of government in a post industrial society and if we do, we’ll create this tremendous opportunity to build the city of the future that we dream of; if only we have the courage, imagination and unbeatable determination of our forefathers.

Sincerely,

TJL
Tim Leigh
719-337-9551
Tim@HoffLeigh.com

January 31, 2010

2010-02-03T10:56:00.000-07:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer or Tenant Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
January 31, 2010

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $105.30 (UP from $105.28 last week.)
We are currently tracking 156 office buildings for sale.
This is 1,652,952 square feet, which represents a total market value of $174,046,433.

All Market Average Industrial Building Sale Price PSF = $84.46 (UP from $82.82 last week.)
We are currently tracking 143 industrial buildings for sale.
This is 1,621,853 square feet, which represents a total market value of $136,976,256.

To View Tim Leigh’s ad, please click below!
http://hoffleigh.com/Doc/Tim%20Leigh.pdf

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/1.29.10.pdf

Tim’s Market Report

While it’s not official, (because it wasn’t written in the Gazette), last week there was a declaration by someone I know that I’m potentially a very dangerous guy. After I chuckled, I thought, “Wow!” Little Timmy Leigh from Grand Forks, North Dakota; who would have ever thought? I guess I really made him mad. (Most wanted maybe, but dangerous? hardly; I don’t even use my concealed weapons permit - yet.) The fact is, I deal with words & thoughts and generally say what’s on my mind. I guess honest opinion and truth scare some people. So, I’d say this, “Be afraid. Be very afraid.”

“And danger is my business”.
(Quote attributed to the world famous cartoon character, UnderDog; circa 1978)

Last week was not the greatest week. I spoke with Fred Crowley who told me that we have an “outrageous potential for inflation” within the next 18 – 24 months. Fred merely stated the obvious and validated what I’ve been preaching for months. He offered evidence; gas prices are up 60% - 70% from 1 year ago; (He says that if you want to follow inflation, follow gas prices at the pump.); energy costs; transportation costs; home heating costs are all 15% - 20% higher than they were a year ago. The “core finished good index” is 10% - 11% higher now than it was in July. I could talk about the outrageous increase in the aggregate money supply and other obvious indicators but suffice to say, expect the dollar to depreciate and that you’ll need more of ”them” to buy fewer goods. Expect high gas prices this summer and expect that it’ll cost more to run your AC. (Note to self: My fear is that we have price inflation along with falling commercial building values. If you want to discuss that scary scenario, call me.)

Last week was not the greatest week. I spoke with 2 separate bank presidents who told me that in Colorado Springs, there are now only 3 commercial banks making commercial real estate loans. Each president (independently of each other in separate meetings) told me their expectation is that the Colorado Springs commercial real estate market will “tank” over the course of the summer as lending continues to dry-up and as existing loans come-due and as existing debtors are not able to find new lending sources. Of course there’ll will be a negative cascading effect where newly lowered prices drive other building’s values down; and which by the way, not only negatively impacts the value of commercial real estate and the personal net worth of commercial building owners, but negatively impacts the city’s ability to collect property taxes. (If building’s values fall, the tax base falls. If the tax base falls, the city’s ability to collect taxes and pay for services falls.) Hmmm. . . I wonder if we can implement extend & pretend?

Last week was not the greatest week. I was on the Big Island and while there, I learned that Colorado Springs is not the only governmental entity grappling with taxation & service issues. Hawaii (the state) is broke. Last week their state legislature floated an idea to steal their version of the LART tax from local taxing entities so they could try balance their budget. The outcry could be heard from Diamond Head to Mauna Lani. The state told the local guys they’d have to find an alternative way to tax tourists if they wanted that money. Wow. That was all I could muster.

Last week was not the greatest week. I mean, come-on; I had a 3 hour appointment with the dentist. How good could that be? My DDS bills himself as painless and mercifully, mostly, he was. But - 3 hours? That’s way too much to expect an ADD kid from the snowy, cold north to endure. And to add insult to injury, I got a flat tire on the way to the appointment and had to trudge the last 3 blocks in dull-dread; nearly falling-down in the cold, on the slippery, snowy roadway; not plowed, no doubt because of no likely snow-removal budget for Austin Bluffs. At least I didn’t have to dodge a trash can.

And I’m not sure my main man eased my pain. Or maybe that throbbing was just the headache I got after reading the City Council memo titled “Financial Crisis Plan”. According to the memo, we (that would be you and me, Bob, and everyone else) are looking at a potential $27,000,000 million budget shortfall in the 2011 cycle; and $12,000,000 in 2012 and $12,000,000 in 2013. Mama Mia – that’s a lot of spicy meat-a-balls! And yes, the painted-picture is bleak.

I came away from the memo more impressed with the city manger than I thought I would. Her memo calls for many of the things I advocate. It calls for “city-wide” management restructuring and the reassignment of tasks to eliminate excess costs; it calls for streamlining operations and generally becoming more efficient in the delivery of services. That’s good.

It calls for shedding non-essential operations and for an increase in entrepreneurial activities, (which, by the way, is a city management model currently being successfully practiced in other cities), which have not been fully embraced here. This would include outsourcing functions, including for example, fleet maintenance, emergency communications, land use permitting, building inspections, reprographic services, etc. It calls for a greater degree of outsourcing of services.

Tom Peters, “the management Guru” from the 1980’s said it first and I merely repeat his mantra, “Anytime you can flatten the management hierarchy you’re better off.” Ergo, anytime you can remove a bureaucratic hierarchy that limits the quality of communication and service, you’re better-off. That would include outsourcing city services which would allow us to hold 3rd party vendors “responsible & liable”, and lessen our operational costs. That’s good.

The memo calls for increasing taxes and a continued reduction in services. That’s not good.

Here’s some interesting out-take reading:

Our potential 2011 budget shortfall is $27,000,000.

Increasing the lodging tax from 2% to 4% would increase general fund revenue by $3,000,000
Increasing the auto rental tax to 3% would increase the general fund revenue by $700,000
Increasing the tax on restaurant sales to 3.5% would increase general fund revenue by $8,200,000
Implement a sale tax on cigarettes would increase general fund revenue by $1,600,000
Eliminating the sale tax exemption on our utility bills would increase general fund revenue by $6,000,000

If you add these less-intrusive (as opposed to increasing property taxes, for example) tax increases and subtract them from the shortfall, you’ll see we still have trouble in River City. “It rhymes with P and starts with T and stands for tax.” And by the way, if we “voter approve” an increase in these taxes, we’re still $7,500,000 short. Ugh. So how do we cover this short-fall? More taxes; sell assets; Hmm. These are enormous questions with significant implications requiring our best minds; we need bright, strategic thought leaders to become involved.

I have many friends who continue to call for eliminating taxes & services. They want to engage in this great rhetorical conversation about the role and function of government in a post industrial society and I think that’s awesome. But before we huddle in the living room to discuss these deep and divisive philosophical topics, let’s first put the house-fire out.

So, here’s a suggestion. Since we have forewarning from the city manager’s memo, before we start calling each other names and before we work on tax and spend battles in the Gazette and other public media, let’s “gather round the camp fire” leaving our differences at the door, and work toward a common goal. (Say; now there’s a novel idea). Let’s figure-out (together) what taxes we need to provide the quality and level of services we need; and then we can launch into interesting, esoteric and deeply philosophical conversation (over wine) about the role of government in a modern society.

Houston – we have a problem.

And it’s not going to magically disappear.

Ok, so maybe it wasn’t a great week last week. But, because I’m an optimist, I think I’ll make this week a great week.

(And, by the way, if you want to weigh-in on the state of the world, shoot me an email.)

Warm Regards,

TJL
Tim Leigh
719-337-9551
Tim@HoffLeigh.com

January 17, 2010

2010-01-20T14:53:00.004-07:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer or Tenant Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
January 17, 2010

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $106.46 (UP from $106.44 last week.)
We are currently tracking 155 office buildings for sale.
This is 1,616,761 square feet, which represents a total market value of $171,891,333.

All Market Average Industrial Building Sale Price PSF = $81.93 (UP from $81.54 last week.)
We are currently tracking 143 industrial buildings for sale.
This is 1,742,185 square feet, which represents a total market value of $142,795,256.

To View Tim Leigh’s ad, please click below!
http://hoffleigh.com/Doc/Tim%20Leigh.pdf

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/1.15.10%20Business%20Journal%20Ad.pdf

Tim’s Market Report

I get interesting feedback from this column. To that point, the following is from a friend who is a respected local attorney. His comments were a result of my comments a few weeks ago, where I proclaimed that “Colorado Springs is a great place to live & work”. I’m not sure he believes me. I’m traveling this weekend, so I thought I’d use his keen insight to “stir the pot.” I’d love to hear from you; weigh-in and let me know what you think.

“Your 1/4/10">1/4/10 observations included several high rankings of Colorado Springs in various surveys. Let me offer a contrarian view.

From time to time I see and hear various Colorado Springs residents complaining, orally and in print, that their children have moved away because they couldn't find a job here, or they didn't like the conservative nature of Colorado Springs. That's nothing more than the manifestation of a greater problem: our children are moving away because they can't find jobs here commensurate with the educations we have provided for them, and the quality of life in Colorado Springs is not high enough to keep them here.

Let me illustrate with my own children. First, there's education. This state, and particularly this city, can't offer the quality of education available elsewhere. Both of my children acquired their college educations elsewhere, at greater expense, because the quality of education available in Colorado, and particularly in Colorado Springs, was not up to the caliber they expected. That, in itself, is not very surprising; we already know that Colorado universities are middling state or private institutions that can seldom compete with top-notch schools elsewhere; we just hope they can bring that top-quality education back here because we think there's no better place to live and bring up families. However, having acquired the education they wanted, Colorado Springs did not offer them jobs commensurate with their education.

Let me rephrase that: there were not (and are not today) jobs that fit their education credentials available in Colorado Springs. Are their educations unusual? Hardly, one has a degree in mechanical engineering and an MBA, and the other has a degree in mathematics. But their educations prepared them for jobs that don't exist in Colorado Springs at the levels and for the remuneration they can get elsewhere. The manufacturers who have located plants here are not local; the local facilities are ancillary or satellite facilities, and the persons employed in those facilities are not the ones doing jobs for which such educations are needed. Think about how many people you have known that were promoted out of their jobs here and had to move elsewhere to move up on their employer's ladder. Hence, my children left town, and so have the children of lots of other parents in this town.

But wait, one of my children changed jobs; he is now just a high school mathematics teacher. Surely, there's a job here for him. Unfortunately, he can't make enough money in Colorado Springs to support his growing family. To do that, he has to go to a big state or overseas, where the remuneration for teachers is much better than in Colorado (and perhaps where his talents for teaching subjects like calculus and statistics are better appreciated and in greater demand). Colorado Springs holds no attraction for him in the job market.

Then there's the issue of the quality of life in Colorado Springs. My children don't think much of that; their quality of life is better elsewhere. One lives in Berkeley, California, and his quality of life is much better than it would be here. I've spent enough time there that I can't argue that with him anymore. The other lives near Tel Aviv, Israel. Quality of life there is not so great (he can see the West Bank, but there aren't any missiles coming from that direction), but he's not likely to be there long. Will he come back to the U.S.? No, more likely to central Europe. I can argue quality of life Colorado Springs v. Tel Aviv (physical danger is the trump card), but I lose when discussing quality of life Colorado Springs v. central Europe, for the same reasons as Berkeley: better schools, better job opportunities, more urban transport, more cultural opportunities, better urban services, less religious strife, better health care. Those are the issues we are fighting among ourselves about in Colorado Springs, and most of Colorado for that matter (Boulder excepted), and we aren't getting any better at any of them.

My kids found places to live where those issues have been solved. 300 days of sunshine doesn't fix those problems, and won't until the citizens of Colorado Springs can begin to think beyond their parochial interests and realize that a great city (and country, for that matter) has to offer more to its citizens than low taxes and bankrupt civic services. There's a good reason Doug Bruce and Focus on the Family moved here from other places in the country: our citizenry seems more amenable to their advocacy of limited social and civic responsibilities. And that has a direct effect on quality of life.

A friend of mine calls me a closet anarchist; stirring the pot is something I seem to revel at. So allow me to stir it a little more. I think the City of Colorado Springs has fallen into what I term the Detroit syndrome. Detroit is a failed city, laid low by a collapse of its employment base, a resulting flight of citizens for elsewhere to find employment, and a failure to provide a quality of living which would induce the income-producing members of the social order to stay in the city. It is now on life-support, propped up by the State of Michigan because it cannot support itself and has lost the tax base (in terms of both population and business) that would allow it to dig its way out of the hole.

Colorado Springs is headed in the same direction. By constantly squeezing the tax base and revenue lower, the citizens of Colorado Springs have started the death spiral of the Detroit syndrome. Colorado Springs can no longer raise the tax revenue that allows it to provide for an increasing quality of life for its citizens, or even to maintain the quality of life, just as Detroit has lost that ability through the collapse of its tax base.

The effects of absolute tax limitation and collapse of the tax base are the same. A city that cannot provide effective mass transit to all areas of the City, that cannot afford to provide para-transit services on weekends or holidays, that cannot afford to water and tend its parks, that cannot provide effective basic services like fixing streets, that has to ration police protection, and now has lost the ability to continue to protect its citizens from stormwater catastrophes, cannot expect to increase or even maintain the quality of life of its citizens.

If this crisis of City services was related solely to the current economic conditions, we could foresee that when economic conditions improve the City could ramp back up its City services to continue those projects which increase our collective quality of life. But that won't happen, because this City now lacks the tax resources in the future to afford it.

I’m heading to the land of Aloha & Mahalo. I’m told they have email all the way across the ocean. It’s one of those Christmas Miracles. So, if you’d like to discuss this article or commercial real estate, call or e-mail me. Let’s test the system; keep it real and have a profitable week.

Sincerely,
Tim Leigh
Imagine The Possibilities!

Tim Leigh
Hoff & Leigh Commercial Real Estate

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer or Tenant Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
January 17, 2010

January 10, 2010

2010-01-11T17:37:00.001-07:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer or Tenant Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
January 10, 2010

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $106.44 (DOWN from $106.45 last week.)
We are currently tracking 148 office buildings for sale.
This is 1,577,562 square feet, which represents a total market value of $167,938,533.

All Market Average Industrial Building Sale Price PSF = $81.54 (UP from $81.52 last week.)
We are currently tracking 139 industrial buildings for sale.
This is 1,729,490 square feet, which represents a total market value of $141,025,256.

To View Tim Leigh’s ad, please click below!
http://hoffleigh.com/Doc/Tim%20Leigh.pdf

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/01-06-10.pdf

Tim’s Market Report

I decided to check on my homeless brothers and sisters over the weekend and took “the walk” which is to say, I walked from South Nevada Avenue along the creek as far as I could to see 1st hand what the situation is. More people have established camp and there is now more litter of all manner and evidence of some camp fires which have destroyed some tents. The situation has clearly gotten out of hand.

RJ is a new camper. He’s been camped for about 1 ½ weeks. He was a painter. He’s clean shaven; no, he’s clean; not an abuser of any kind. He has 5 children and 16 grandchildren. He’s from Duluth (that’s correctly pronounced “Dalut”, Bob); knows of Grand Marais and has been to Sven & Ole’s Pizza. http://www.svenandoles.com. RJ says things have not been the same since Jacqueline died 6 years ago (February 2nd). I asked him about his kids and grandkids. Why don’t they help? He couldn’t say. But as I walked away, he answered his cell phone. Hmm.

Then there was Patricia Justice. She is a “day-camper”. She was at the corner of I-25 & Cimarron. She spends the nights at her “old man’s” house (that would be boyfriend, Shannon) with her old man and her son. She has a tent and stuff stored because she needs a place to “get away”.

I met Victor Monazhan, whose wife, Stephanie is an MP Support person at Ft Carson, who brings his kids, Selena (6); Jacob (4) and Victoria (3) to the camps regularly. Victor says he was suffering from Social Anxiety disorder but since he’s been able to come to the camps, he’s feeling better. Later that evening, after dinner Stephanie arrived to retrieve her family.

I checked on Ed & Kenny. Since I was last in the camps, Ed had been “jumped” by “Grumpy & Cowboy” and left to die. He had been clubbed on the back of the head, kicked and kicked and kicked and then covered only in a blanket, left in the high grass along the creek just south of the Cimarron exit, and was only inadvertently discovered while the paramedics were looking for someone else. He spent 5 days recovering at Penrose Hospital.

I asked Kenny what he thought the solution to the homeless camps was. He didn’t know, but he acknowledged that the situation has gotten out of control and asked, “Where are you going to put us?” like “they” were so many toys that needed to be put away for the night. He said, “I wouldn’t know how to pick up my stuff and carry it away.”

New to camp was Leah; I didn’t get her last name. She admitted her alcoholism. She told me her day’s work is panhandling and “working the lines”. “Working the lines” is the street euphemism for begging from the drivers as their cars line-up coming off the exit ramps. She and Robert had been working the lines earlier in the day for an hour. They made $15 which was more than enough to buy the ½ gallon of $9.95 TAAKA Vodka they were nursing. She said if she didn’t have to share it, she could make the bottle last for at least 2 ½ days. Robert said he normally expects to work the lines for about $15 per hour and will work 1 or 2 hours a day. He says the most effective sign is “Homeless Vet”. Leah said she likes to “play on the driver’s sympathy” and acknowledged that “women have an easier time panhandling than the guys”.

Folks, the problem has gotten out of hand. According to the Gazette, the city council is meeting to discuss this issue later today in their informal session. I would encourage them to do some web research. There are other cities that have had similar problems and found accommodating solutions. Portland has “Dignity Camp”, for example. When it’s no longer safe for the average person (that would be the average tax paying citizen) to walk, ride or run, along the very expensive Monument Creek trail system, action needs to be taken - now.

I was under the bridge at Nevada & I-25 and was nearly accosted. I ran into 12 hombres looking for a fight. Except that I kept my eyes down and away, I’m sure they would have accommodated themselves with me. They were menacing and made “dirty comments” to me as I quickly walked past. They were passing around a handle of “The Lord”. That would be Lord Calvert, “the only lord they know”. James King is my bodyguard. He told me that I was crazy for taking the walk without him; but he insisted on returning with me after I accepted a dinner invitation to dine creek-side, campfire style, with an occasional pull on the TAAKA. (I passed on the TAAKA). At dinner, we sat by the fire and it did get cold.

As the stars began to appear, the brisk evening air crept down the back of my neck, then protected only with blue-jeans, my legs started getting cold. I inched closer and closer to the fire until I couldn’t get closer because of the smoke. Some kids had come-by earlier and dropped-off 100 burritos so that was the night’s menu; and the fetching Mrs. Leigh’s homemade chocolate chip cookies for desert. The guys had not had a homemade cookie “can’t remember the last time.” They said the cookies would be good chasers for the vodka. I thought, “nice, real nice”.

So putting myself at high risk, I’ll call for a small commission of people who know about these things; Bob Holmes comes to mind, to get on a plane and see what other cities have done to solve their similar problem. This could take a week and a few thousand dollars. If there is insufficient money in the city budget to fund this travel, let’s raise it privately. I’d guess this may be the best investment we can make to really solution this problem.

When we solution this hard-core homeless camp situation and relocate and help the folks that really need it and thereby retake our parkways, clean up the creek-beds and return the I-25 view corridor back to scenic beauty, everybody will feel better.

If you’d like to talk about homelessness or my trips to the camps, call me. 719-337-9551. Or if you’d like to see the photos I took over the weekend, go to Facebook 2 and “request a friend” at “Monument Creek.

Now, having said all that, recall that I sell commercial real estate and in spite of recently past market conditions, remember “the people who make money in real estate (or any investment) are contrarians. They buy when the night is blackest and everyone else is running scared”. So to answer last week’s question of the week, “Now is the time to buy!”

I hope you have a thoughtful, provocative and profitable week.

Sincerely,

TJL
Tim Leigh
719-337-9551
Tim@HoffLeigh.com

Imagine The Possibilities!

January 4, 2010

2010-01-06T11:43:00.006-07:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer or Tenant Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
January 4, 2010

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $106.45 (DOWN from $106.47 last week.)
We are currently tracking 148 office buildings for sale.
This is 1,577,562 square feet, which represents a total market value of $167,938,533.

All Market Average Industrial Building Sale Price PSF = $81.52 (NO CHANGE from $81.52 last week.)
We are currently tracking 139 industrial buildings for sale.
This is 1,730,686 square feet, which represents a total market value of $141,085,256.

To View Tim Leigh’s ad, please click below!
http://hoffleigh.com/Doc/Tim%20Leigh.pdf

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/10.16.09.pdf

Tim’s Market Report

Looking back over 2009, the worst year in the economic history of the country since the Great Depression (except that the stock market’s value increased, and except I’m still very leery about that and am willing to share my personal philosophy with any caller), I commended our staff, congratulating them with “Way to go! We made it! Whew!” I’m not going to lie. It was a challenging year. We saw our cash flow alternatively dry-up and then slowly recover only to dry-up. I witnessed many friends go-out of business. Lamenting the state of the world to another of my friends, he reminded me that “any problem that could be fixed with money wasn’t really a problem”. I didn’t get it; then I did when, last week I learned that 2 of my friends lost their children; 1 to suicide and the other losing a long battle against an incurable disease. I cannot imagine what that pain is like. And news like that keeps everything real.

Last week, I wrote about the future. The future is a funny thing. It scares many people and in fact, I had one friend call to complain that I was too negative and brutal when describing the future. He said, “Your world view is warped! I’m not going to read your column anymore. I need positive news.” Then I got feedback from a Naval Commander (he commands a destroyer) who said last week’s column was “prescient - right on”. You never know. I guess the Commander is used to fighting.

Ah, yes; the future. I’m terribly interested in it because I want to be part of it. I’m told that it’s better to be part of the future than not. And, I consider myself to be a “futurist - an early adopter”. I mean, come-on; in the past week, I learned how to get-on Facebook and I learned how to “write on a wall” and “upload photos from a mobile device”; I got a got a Pandora account and am now the proud owner of a “personal radio station”. (I like the Beatles, personally.) I’m Linked-in and I’m learning to Twitter. I have Red Laser on my I-Phone so I’m able to “shop and compare” by scanning UPC Codes on my telephone; I joined “Cross Fit” and learned to climb high into-the-sky on a rock wall at a gym where I used to make-out in the last row of the balcony while stationed at Ft Carson. (Oh, and by the way, I climbed nearly 50 feet, way-away from my comfort zone! This was a huge victory for me because I’m deathly afraid of heights. And, yes, I know Dr., it’s a control freak thing!) I mention all of this because I now have access to stuff whose descriptions weren’t even words 3 years ago. That’s called the future.

So what’s the future got in store for building owners; hopefully, increasing rents and attendant, increasing building values. I was perusing the list of office and industrial buildings for sale over the weekend. I was looking for anything interesting. Unless you are looking to buy a “user building, there ain’t much to pick from, Mr. Jones!” It seems that Mr. Market has a higher opinion of his building’s worth than Mr. Tax Man. (Mr. Tax Man, sing me a tune; tell me about the brand-new blue moon; tell me about the days to come; tell me about my building’s value!)

Pricing still doesn’t match market realities. In the office building market, the average asking price is $106; the assessor says the average value for the same list is $72. That’s a difference of nearly $35 psf. Only 18/149 (12%) of currently listed office buildings for sale are priced at or less than the assessor’s guess of market value.

In the industrial market it’s about the same. The average asking price is around $81 psf; the assessor says that product is worth $54 psf. The difference is about $27 and only 14/139 (10%) are listed at or below the assessor’s value. I’d say we have a way to go.

Is there any good news? Yes. I keep telling everybody how lucky we are to live in Colorado Springs. Our economy, as choppy as it has been for the past 12 months is on the rebound. Colorado Springs has recently been chosen to be one of the “top places to sit-out the recession”; we’ve been identified as one of the “best places for a quick recovery”; we’ve been ranked in the “top 10 places to live if you’re a woman”; and “top 15 if you’re a man”. We’ve been ranked as one of the “top 10 Best Driver’s cities”; Forbes says we’re the 9th best “Bang-for-the-Buck city”; “3rd beast City for a housing recovery”; “4th best state for business”; and Live Science says “We’re the 4th Happiest State”. And if that’s not enough pump to your endorphins, the EDC says they have a couple of “significant” announcements coming in January.

Now, if somebody will just, please, turn up the thermostat.

Here’s to a profitable week,

Sincerely,

TJL
Tim Leigh
719-337-9551
Tim@HoffLeigh.com

December 27, 2009

2009-12-29T09:21:00.002-07:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer or Tenant Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
December 27, 2009

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $106.45 (DOWN from $106.47 last week.)
We are currently tracking 148 office buildings for sale.
This is 1,577,562 square feet, which represents a total market value of $167,938,533.

All Market Average Industrial Building Sale Price PSF = $81.52 (NO CHANGE from $81.52 last week.)
We are currently tracking 138 industrial buildings for sale.
This is 1,727,086 square feet, which represents a total market value of $140,790,256.

To View Tim Leigh’s ad, please click below!
http://hoffleigh.com/Doc/Tim%20Leigh.pdf

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/10.16.09.pdf

Tim’s Market Report

Are you making a New Year’s resolution? It’s that time of year. I’m planning to simplify my life.

I can’t control the earth - the volatile Mayon volcano from erupting 200 miles southeast of Manila. (The last time it erupted it killed 1,200 people and buried surrounding villages). Now, 50,000 people have been evacuated but Chinese tourists continue to slip through police barricades to see lava flow.

I can’t control the government – I can’t stop the Nevada horse round-up. (If you’re not aware, the BLM is planning to roundup 2,500 horses in Nevada on their way to rounding-up 25,000, many of whom will die in transit by helicopter to holding pens. (I know – you can’t make this stuff up.)

I can’t control the system – the financial crisis; and I can’t stop the rain. So, I’m going to do-whack-a-do-whack-a-do.

I’ve always been interested in resolutions and trends and the future. I want to know what’s going to happen. It’s symptomatic of control freaks. (Not that I’m one, mind you. I’m too passive for that; a mere Wallflower; a regular dandelion.) I’ve read Toffler; I’m familiar with Faith Popcorn and now, the new Rock Star trends-forecaster, Gerald Celente. If you’re not familiar with him, crawl out from under the rock and Google him. His track record’s impressive. He called the financial melt-down and is advisor to business leaders and governments.

So, what’s Celente say is in store for 2010? Terror; economic collapse; a return to elegance & quality, and a buy local movement. Great. And I’ve been worried about filling pot-holes at Industrial Place.

From Celent’s Trends Journal (his quarterly newsletter);

“We’re looking for terror in 2010. When it happens, where it happens and how it happens, we don’t know, but we’re saying it’s a high probability. (Hmm. I think the moon will change from dark-to-full; when or how, I’m not sure. I’m just saying…..)

All the stimulus money, from Australia to Japan to China to the U. K. to the U. S. – and they’ve been dumping Trillions of dollars of stimulus money to keep the bank crooks afloat, is going to start drying up. When that happens, we’re going to see another economic collapse - The Crash of 2010. We had The Collapse of 2009. It happened in March. But what they did was paper-it-over with stimulus money. So they kept the collapse from crashing, temporarily. We’re going to see the crash happen in 2010.

We’re going to see a “Depression High”. There’s going to be a return to elegance & quality. Those are the only things that make it in this kind of atmosphere. Go back to the last Great Depression. People were dressed to the 9’s and it was the hottest, happiest music America ever saw. It was Swing Time! We’re going to see the rebirth of that in a lot of ways. We might even rediscover etiquette; treating people nicely; doing things respectfully; and do unto others as you would have them do unto you.

Quality is the only way people are going to be able to make a profit. Average is not going to cut it. Jobs are scarce. People looking for jobs will want to look their best and be their brightest and smartest. It’s a time to regain dignity. We’re looking at a turning point in 2010.

And along those lines, another trend is the “Shape-Up America” trend. There is going to be a lot of money made in this. We’ve hit a tipping point. Obesity rates are going to hit over 40% in the next few years! So, we’re going to start seeing a reversal of that in many different ways. This will be more than a diet program and fitness; we see a new “New Age”. The only way people are going to understand how to “make it” through the very difficult times we see coming is to be in shape physically, emotionally and spiritually.

If you’re not in shape physically, emotionally and spiritually you’re going to have a hard time facing a very difficult future because one of the other trends we’re writing about is “Survival”. No one knows what’s going to happen next and that’s the kind of survival thinking people need to keep in mind. Survival means wear it out, use it up, make it do, do without. Be smart in what you do. Be lean & mean. Be ready to move in any way. It doesn’t mean going into the woods with a gun and pork and beans. But, it might mean that! But it does mean “how are you going to survive the times ahead?” How are you going to change your lifestyle and be smart to keep what you have and build on that? Survival in every different way is a major trend for 2010.

The food you eat; everything, buy local! That’s another trend. Not “Made in China”. This is a huge new trend! I’m not only an “American Firster”, I’m a buy-local-guy. I support my neighbor. And people better get wise to that thought because the government sold us the biggest lie ever. It came out of the mouth of Bill Clinton – how he shoved NAFTA down America’s throat. He told us that with NAFTA our quality of life would go up, more jobs created and with higher pay. The exact opposite has happened. It’s not “fair trade”. Its dealing with the country that has the cheapest labor supply; slave labor. Get it made over there, bring it back over here and mark it up! So for us to increase our standard of living, we first have to support each other, thus, the “Buy Local trend”.

We see many more trends coming. One of them is “Mothers of Invention”. When there is chaos, you work from that and find new form. You use it in a productive manner. You know that you can no longer go on the same path and all these trends are interconnected. With chaos, when you look at it in personal health, you hit a point where you have to turn around or continue to decline. With chaos, you lose a job; the former job no longer exists. What do you do? You re-formulate and move to a new direction. So, the “Mothers of Invention” as we call this trend is going to create an America world that’s going to be much better than the one we’re leaving.

We have to wash away the system’s corruption; the greed and destruction. If we continue on this path, our future will be clear - it’s going to decline. If we look at it for what it is and move in new directions, we could move into a much brighter future.

Q: ARE YOU SEEING ANOTHER ECONOMIC CRASH IN THE UNITED STATES IN 2010 BECAUSE OF FAILING COMMERCIAL REAL ESTATE?
A: Well, that was one of the trends we forecast many months ago: “Bye-Bye Dubai!” was the headline we used at the Trends Journal. 2009 was the beginning of the commercial real estate collapse. So far commercial real estate has only been held up by funny money and Fed programs.

For example, one of them was called TALF – Term Asset-backed Loan Facility. And what the government did was prop up the commercial real estate sector. They can’t do that anymore. It’s collapsing and it’s worldwide.

Q: IF CHINA CARRIED THROUGH SWITCHING FROM BASING ITS CURRENCY ON THE U. S. DOLLAR AND SWITCHING OVER TO THE EURO, WHAT WOULD BE THE PRACTICAL IMPACT FOR THE AMERICAN EVERY DAY?
A: The cost of everything we buy is going to go up. And we’re very concerned about a currency crisis. It’s not only the dollar - all of the currencies. There is a problem worldwide, but not so much for the Chinese because they have a currency surplus of about $2.5 Trillion. Other countries like the United States, the U.K. and others are stimulating economies with deficits. But even the Chinese are going to face problems because we’re looking at world trade in 2009 off-more than 20%. If the world doesn’t consume (their products) China doesn’t go forward.

What we’re very concerned about is that they’re going to start bailing out of dollars! Who wants to be stuck with dollars when our government is printing them – this isn’t real money! Its digital money that’s not worth the fake paper it’s printed on! And when that happens, there’s going to be a devaluation of the dollar (called Inflation!). Then everything we buy is going to cost more.

Q: DO YOU THINK IT IS POSSIBLE FOR THE UNITED STATES TO END UP AS BADLY AS ARGENTINA A DECADE AGO?
A: Worse; because our debt problems are worse. We’re witnessing classic empire decline. We’re fighting wars in foreign countries as we’re depleting the Treasury. The worst news is that when America crashes it is going to affect the entire planet. It’s kind of like the collapse of the Roman Empire that was followed by a Dark Age.

There’s no one to fill the vacuum. China’s not going to emerge as a great power. They have 1.3 billion people and a million problems! In 2008, the last numbers that came out, China had 70,000 major riots and disturbances. What are they going to do when people are thrown out of work by the hundreds of millions? We’re entering a very de-stabilizing period worldwide.”

Don’t shoot the messenger! Heck, I think I’ll go home and blow-a-little-reefer; (er, ah, that would be legal, now – it’s medicinal marijuana, Bob) and bury my head in the sand. Or I’ll get up; get to work and work-on-working. I mean, after all, I can’t control the earth, the government or the system, so I’ll just control what I can.

My new years wish for you is Peace & Prosperity.

Sincerely,

TJL
Tim Leigh
719-337-9551
Tim@HoffLeigh.com

December 20, 2009

2009-12-21T13:28:00.002-07:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer or Tenant Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
December 20, 2009

Tim Leigh
Imagine The Possibilities!

719-337-9551
Tim@HoffLeigh.com

December 13, 2009

2009-12-14T09:03:00.002-07:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer or Tenant Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
December 13, 2009

Due to technical difficulties, our various market reports were not attached this week. I’m sorry for the inconvenience.

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $106.48 (DOWN from $106.94 last week.)
We are currently tracking 148 office buildings for sale.
This is 1,577,562 square feet, which represents a total market value of $167,978,533.

All Market Average Industrial Building Sale Price PSF = $81.68 (DOWN from $81.92 last week.)
We are currently tracking 141 industrial buildings for sale.
This is 1,743,309 square feet, which represents a total market value of $142,395,256.

To View Tim Leigh’s ad, please click below!
http://hoffleigh.com/Doc/Tim%20Leigh.pdf

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/10.16.09.pdf

Tim’s Market Report

I watched a friend of mine move-out of his house over the weekend. I suspect his house was worth over $1,200,000 in the hey-day. He sold it for $700,000 to raise some quick cash; said he’s downsizing. He went from 5,000 sf on a couple of acres to a 1,500 sf condo. He went from a Mercedes to an Acura. He’s a real name and face and he’s another statistic. And I was late for a meeting last week because another friend stopped by in desperation. “What can I do with my building?” “Call the bank,” I replied, “You owe more than its worth.” His wife told him not to worry; “You can always make more money,” she said. She doesn’t get it. He can’t.

And I’d like to report that the commercial real estate market is picking up steam but I can’t. Yes, we’ve done several small leases in the last week or so but unfortunately, especially if you’re a building owner, that activity may not mean much. The sad truth is; deals are being done at huge discounts. In rational markets, lease rates would hold “somewhat steady.” However, in these “irrational times” we continue to watch lease rates drop like a proverbial 6” putt. In fact, Steve had a chip shot at 4465 Northpark Drive last week (this is a class B/C building where Antonio’s Restaurant used to be). He missed because the Tenant was able to roll into similar space in a class “A” building for less rent.

Anecdotally, we’re remodeling our office building at 2500 North Circle Drive in preparation for re-tenancy. We’ve had a tenant in place for the past 5 years and the building has been a cash cow. Joe Hastings appraised the building November 1, 1999 for $675,000 and in a normal market this building would easily be worth over $1,000,000. As we all know, “timing-in-life” is everything and unfortunately for me, I find myself with terrible timing trying to raise a little scratch in an unnaturally depressed market. To get there, I swallowed my pride and lowered my price to $625,000. For the math challenged, that’s $50,000 less than a 10 year old appraisal. Ugh. There’s a reality check; all that motion and still no love.

And, according to Dave & Matt, there are now 149 office buildings (less than 40,000 square feet) for sale with an average asking price of $106.48. At Fred Crowley’s suggestion, we’ve started tracking our data by Zip Code and a 1st run count told us 80903 has the greatest number of office properties listed for sale – 34; followed by 80909 with 27 and 80918 with 18. Stay tuned as we refine our data. Our goal’s been, and continues to be “to provide superior data for decision makers” and I’d be happy to discuss any of this with you. Just call or write.

As 2009 winds down, I’d say we’re still trying to find the bottom of our market. Here’s a couple of examples; we’ve had 1757 South 8th Street for sale (with give-away pricing) and can’t find a buyer; we went under contract on 103 South Wahsatch for fifty-cents on the dollar; and we’re in the middle of a 10,000 sf lease negotiation on a 3 year (downtown) office lease for $1; $2; $3 per square foot.

And here’s the crass commercial message; call me if you’d like to discuss your situation and how the market will impact your circumstances in 2010.

Now some good news! We live in Colorado Springs! And we have a great water system! Last week, I took the tour, drank the Coolaide and became a disciple.

I’m not going to lie. I like water. I like warm water better than cold water. That is of course, unless it’s hot outside and I need a cold drink. Then I like cold water; but, mostly, I like clean water. And we’re lucky we don’t live in California or Georgia or pick-a-place, where they treat their waste water (yes – that waste) and drink it. We’re lucky because our water is 1st source water. We get to use it before anybody else. That’s one of the unique things about our community. In fact, it’s nothing short of a Christmas Miracle that we can convert 1 cubic foot of Rocky Mountain snow into 1 gallon of sparkling, clear & clean water, and deliver it from Western Slope to our homes in 3 days through a series of pipes and tunnels and open waterways nearly 200 miles long for less that ½ of 1 cent. Many people cry to be witness to a miracle so “they believe.” This is one.

Nearly 2/3 of our water supply starts as rain or snow melt on the west side of the Continental Divide. It falls somewhere near French Creek, where is bubbles down-creek, joining flow from Fancy Creek, Missouri Creek and the entire Homestake Basin. It gathers steam as it rushes through the 1st pipe owned by CSU which accumulates to the Missouri Tunnel, (6’ diameter; 1 mile long) who delivers this 1st source water to The Homestake Reservoir, which is nearly 11,000 feet above sea level, 200 feet deep and holds nearly 43,000 acre feet of “home brew”.

By the way, an acre foot of water is the size of a football field 1 foot deep in water. Colorado Springs uses about 80,000 football fields per day. Think of 80,000 football field stacked on top of each other; then think about 80,000 football fields stacked on top of each so high that they reach twice as high as a plane flies to Hawaii. That’s our daily consumption of water. Yet, according to Richard Skorman, even with all that, on a per capita basis we consume less water than any other Front Range city.

From the Homestake Reservoir, our water continues through the Homestake Tunnel under the Continental Divide to Turquoise Lake then to Twin Lakes (with each lake dropping nearly 1,000 feet in elevation from its predecessor); then across South Park (not through 11 Mile or Spinney – which is Denver owned water), to the Rampart Reservoir. From Rampart, the water is flushed down a 1,000 foot “drain pipe” where it winds its way through various treatment facilities and nearly 2,000 miles of distribution piping to our homes. When you look at the system our engineers have concocted, it’s nothing short of miraculous and they have done it all with old technology.

Of course we flush about 43,000,000 gallons of waste every day, and of course if I was downstream, I’d be concerned. But we have mitigation systems in place that prevent major problems like the Fountain Creek recovery project. That’s a $10,000,000 system that collects all the water flowing through Fountain Creek when necessary, while simultaneously releasing up to 18 million gallons of clean, stored water, that’s continuously stored “just in case.” The contaminated water that’s collected is recycled through the waste water system, cleaned-up and ingeniously reused as gray water throughout the city.

Yes, I did meet with the CSU guys and heard their story and was amazed. I was amazed by their good work and strategic thinking. And I was amazed that our city thinks a part-time city council can run a Billion Dollar enterprise. Hmm. . .

Have a profitable week.

Imagine The Possibilities!

Sincerely,

TJL
Tim Leigh
719-337-9551
Tim@HoffLeigh.com

December 7, 2009

2009-12-08T12:30:00.002-07:00

Sincerely,

Tim Leigh
Imagine The Possibilities!

719-337-9551
Tim@HoffLeigh.com

November 29, 2009

2009-11-30T15:58:00.002-07:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer or Tenant Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
November 29, 2009

Thankfully, attacks have decreased exponentially from the relentless offensive launched by the enemy last month. While the recent reduction in attacks in our area can be attributed to other factors, most notably, our rapid and effective coordinated responses to the attacks they staged, which caused heavy attrition on their side, but most importantly caused the enemy to lose possession of the public perception of having the momentum in this fight, a degree of the recent reduction in attacks can be attributed to the change of the seasons.

The snow has begun to close the passes and the logistical supply lines that resource the Taliban with fresh fighters and weapons. Many of the nomadic fighters have been forced down from the mountains back into the valleys and then towns, finding shelter with relatives, laying down their arms, focusing all of their efforts on surviving the winter.

Normally, if we were back in the states, off at some training exercise, this dreary weather would demoralize me and the soldiers around me. Here, in this place, at this time it has been greeted with a degree an unspoken relief that we’ve made it this far; made it into a new season; made it past the halfway point and that we’ve made it to a point where we can take a collective breath, reflect, and focus our efforts on the remainder of this mission. Sure, being cold, wet, and muddy still sucks, but at the end of the day we’re all still thankful that we’ve made it through another season.

Tomorrow is Eid al-Adha, aka the festival of the sacrifice, which is the Muslim celebration of Abraham’s willingness to sacrifice his son to God. As I’m sure it’s observed in a similar manner throughout the Muslim world, here the Afghans will be taking the day off, spending the day with family, sharing large meals of goat, rice and bread together, ironically similar to our traditional observance of today’s American Thanksgiving holiday. Unlike our tradition though, some of them will probably use the holiday as a time to sacrifice themselves in the name of Jihad...we’re going to cross our fingers that they decide to stay in with family for the holiday.
It’s Thanksgiving here. I’m sure the cooks will serve some turkey and besides a loosely planned shooting competition between our soldiers and some of the Afghan soldiers, and the high probability of a muddy game of pick-up football, nothing out of the ordinary is planned for the day.

Just as we are thankful that another season has passed, my soldiers and I are tremendously thankful for the support that we receive from our families and friends back home.
Make the most of the holiday; Happy Thanksgiving!

Take care,

John.

Wow!

How can I add to that? It’s been a rough year for most folks in 2009. It’s been the worst year for real estate that I’ve ever been through. Worse than it was in the 90’s; worse than the 80’s and worse than the natural gas moratorium in the early 70’s. And it’s been a year of growth. And maybe; just maybe it’s forced us to stop and smell the roses; to watch the sunrise and the sunset; to look at the important things in life and to recount our blessings.

My hope for you is that you will be thankful at this time of year; and that that you will stop long enough to thank somebody for something.

With Warm Personal Regards,

Tim Leigh

TJL
Tim Leigh
719-337-9551
Tim@HoffLeigh.com

November 22, 2009

2009-11-23T14:56:00.002-07:00

Sincerely,

TJL
Tim Leigh
719-337-9551
Tim@HoffLeigh.com

November 15, 2009

2009-11-16T08:51:00.002-07:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer or Tenant Representation
4445 Northpark Drive, Suite 200
November 15, 2009

Imagine The Possibilities!

November 8, 2009

2009-11-10T10:25:00.002-07:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer or Tenant Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
November 8, 2009

Attached is our complete listing of all properties for sale in Colorado Springs, based on property type - office, industrial and condo. This is the most complete listing that we are aware of. It’s our goal to provide this information, updated weekly. We develop these lists by basic research and cross-checking data points from the PPCIE, local broker's individual web sites, The Turner Book and any other public information domain we can find.

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $109.22 (NO CHANGE from $109.22 last week.)
We are currently tracking 147 office buildings for sale.
This is 1,526,152 square feet, which represents a total market value of $166,686,033.

All Market Average Industrial Building Sale Price PSF = $82.05 (UP from $81.92 last week.)
We are currently tracking 143 industrial buildings for sale.
This is 1,765,687 square feet, which represents a total market value of $144,878,756.

To View Tim Leigh’s ad, please click below!
http://hoffleigh.com/Doc/Tim%20Leigh.pdf

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/11-6-09.pdf

Tim’s Column

This last week was an awesome week for my diet. First, The Crown Plaza for scrambled eggs with cheese, no ketchup please; small, diced, fried potatoes & beacon so thin you could see through it; then lunch and more banquet food; then dinner and more banquet food; and finally the next morning, breakfast at the Antler’s; a repeat; scrambled eggs with cheese, no ketchup please; small, diced, fried potatoes & beacon so thin you could see through it; I’m convinced that if you played your cards right, you’d never have to buy groceries!

But, really, how are things? I’m concerned.

I’m concerned about the county’s foreclosure rate and its impact on everything & everybody. Tom Mowle says he’s filed 4,603 foreclosures so far this year; he expects to finish with about 5,200. Contextually, he filed 4,602 last year and 3,476 in 1988 which was the last “really bad” year. I’m concerned when I hear that the best place to get a new job is in the Bankruptcy attorney’s office. John Tuner, a local attorney says, “Business is booming!” Nice; real nice.

I’m concerned when I hear from a Wells Fargo economist that the 650,000 jobs Obama takes credit for cost us $234,000 per job. (Psst . . here’s an idea; why not just give out $100,000 bills to people looking for work? On that basis, they could have created nearly 1,500,000 jobs!) I worry about the other renown part of the stimulus program; cash-for-clunkers. The story is that each car cost us (that would be the taxpayer’s, Bob) $24,000 per car.

I’m concerned that the Preble’s Meadow Jumping Mouse may be endangered. (Actually, Bob Hoff told me not to be too concerned about this because the government’s got the ball. He said Washington’s prepared to spend nearly ½ a Billion dollars protecting the furry, little guy. At ½ Billion, that’s a cost of about $8,500 per known mouse. OK; here’s another idea; everyone who wants to buy a house but has a cash-flow problem, (remember, this is a real-estate-advice column), go to ZeeZo’s Costume’s (located downtown on Tejon Street); rent a mouse costume; apply to your father in Washington for relief as a mouse and use the award toward your next purchase. Hmm. . .

I get concerned when I hear that in 25 years (I think I’ll be alive to see this!), Medicare, if left on its present course, will consume 100% of the national income. Digest that and gulp. I get concerned when I see a national debt over $12 Trillion. I get concerned when I see we carry a national, annual deficit over $1.42 Trillion dollars, which by the way, is triple last year’s record. I get concerned about government gone bad and out of control.

And while I’m concerned, I’m not worried, because I’ve been assured by our Father in Washington that the recession is over (this in spite of 10.2% unemployment) and that the good times are on their way!

Really; how are things? Locally, I’m concerned because the market for commercial buildings continues to slide side-ways and the average lease rate is “What can you get?” I get concerned about the Tenant pool, when I see Landlord’s fighting in the shallow-end for warm bodies that will “swim-up, sign-up, pay-up and shut-up.” Forget about long-term commitments. These deals remind me of college Frat brothers; lot’s of talk and flash and no commitment. Ladies, hide your daughters!

I get concerned when Tenants call me asking how to negotiate rent-rate-reductions. They’ve heard others are “getting-a-deal” and they don’t want to be left behind. I ask, “If market conditions were the opposite (increasing rents) would you volunteer to pay more?” (That’s actually pretty funny). And I’m pretty certain we live in a unique moment in time where lease contracts don’t seem necessary because they’re not honored anyway. I think that era started with massive bank-bail-outs and the cultural shift engendered thereby. Rephrased, the question’s normally something like, “If the government can give money to the banks and bail-outs to others, where’s my share?”

I get concerned when a friend tells me he is planning to lay-off another 68 guys before Thanksgiving. I get concerned when I find out that another guy lost a manufacturing contract because his customer “shut-er-down” and is now manufacturing overseas. I get concerned when I hear from my buddies at the Local 58 that there is a line of guys waiting for work with no love in sight. I hate to imagine what it’s like to wake up every morning knowing from that sinking feeling deep in the pit of the stomach that there’s no job today and the outlook’s not great, either. I can only imagine a feeling of panic & heaviness especially with the advent of the holidays.

I get concerned when I hear, that compared to the 1980’s recession, it’s worse now to because the average American family has triple-the-debt and ½ of the savings; that the average guy is unemployed nearly 3 months longer and he doesn’t have health insurance so he’s only 1 medical-emergency away from losing the flat panel or car or house; facing foreclosure or bankruptcy.

I get concerned when I preview & value obsolescent commercial real estate and the hapless building owner isn’t even remotely aware that there’s a bus careening off the track and that it’s about to run-him-over. I saw another such building on Academy Boulevard last week. After our meeting with the owner, I told Steve, “I’m sorry for him. He doesn’t have a clue that he’s real estate’s “dead-man-walking.” His equity was his retirement. Florida sounded nice once. Now, he’ll be lucky to get-away from the debt. Oh, and lest we forget the 8 little gals who were working-away at their work? Mostly in their mid-twenties, I suppose; none knowing they are about to become statistics. Where will they find a new job?

I get concerned about a lot of things; most that I’m not able to control and some that I can. But I have a feeling that unless we figure out how to pull on the oars together. . . well, you get the idea.

And yes, because I’m concerned and want to do something about it, (just in case you haven’t heard), Lon Matejczyk let the cat out-of-the-bag in his most recent column and it’s true; I’m officially the candidate for Mayor in the 2011 city election. So far, I’m an “Army of One.” I’m running for Mayor with no official competition, endorsement or love! It’s actually kind of cool, though. I mean; by being the only candidate, I can honestly tell people that I’m the front-runner. So far, so good!

Lon says my (reported, but not true) “big, fat, flappy mouth” may have something to do with solitary nature of my journey thus far; or that most folks are waiting to see if somebody (anybody) else shows up. And of course, nobody likes to bet on a dark horse. And we’re pretty early in the game. (The election’s not for another 510 days – that’s 734,000 seconds!) But, my life’s always involved planning & execution; and as the consummate planner, I know that without laying the right foundation, the election’ll sneak-up on me.

And, I’d like to put everyone on notice – I’m a serious candidate and I plan to win.

So, what’s my deal? Fair question; it’s that I’m concerned about (and you should be too) the lack of respect, vision and leadership that’s been foaming-out from the city council and Mayor’s office, and the resulting inefficient city management and seemingly, never-ending-crisis’ facing our city. I know we can do better and I’m willing to do my part to help make Colorado Springs a world class place to live, work, play and raise kids.

By the way, I understand the commitment; the low pay and the obligation. But, I also understand and believe that at some point, it’s incumbent upon all of us to work to make our place a better place; and if we’re not willing to do that, we should find another place. It’s that simple; really.

I’ve said and believe the Mayor should be the city’s #1 Advocate & Encourager speaking to community organizations, explaining why we are where we are, what we’re doing to move forward and then lead in that direction. I mean; this ain’t rocket science. The problem is; we’ve been collectively used to such a low threshold that my ideas sound radical.

The Mayor should travel with the various community organizations who are promoting our city’s value proposition because our number 1, 2 and 3 issues are the same; “We have a critical need to create employment opportunities in Colorado Springs” and that’s done one way; by coordinating efforts & working together.

It’s time we set aside our cultural & political differences which are best left to argue at the state or federal level and focus on keeping-the-main-thing the-main-thing; that’s building a sound and sustainable financial model for private enterprise and for city operations.

Here’s my vision; it’s that that Colorado Springs becomes known as a safe, fun & clean place to live, with abundant job opportunities and a financially responsible government; and in the process, becomes known as a place that welcomes a burgeoning, creative class; that our city nurtures existing & welcomes new ventures and businesses; and in that process, creates a vibrant economy and an interesting, well-educated, multi-cultural citizenry. My vision includes changing the way we do business in Colorado Springs; changing our culture to “Yes! We can!”

And so Lon doesn’t think I’m going to drift into some bland retread from the past, let me assure him (and you) that that’s just not the case. Yes; I’m “pro-business”; I’m for “transparent government & budgeting processes”; I’m for “public safety” and I’m for “quality of life”. That I’m for those ideas does not brandish me as a retread, it brands me as someone who cares about our city. What I bring to the table, Lon, are fresh perspectives and the willingness to use my “big, fat, flappy mouth” to speak-the-truth and say-the-things others only whisper in polite company.

If you’d like to know more about my candidacy, please feel free to email me at Tim@HoffLeigh.com or give me a buzz at 719-630-2277.

Imagine The Possibilities!

Sincerely,

TJL
Tim Leigh
719-337-9551
Tim@HoffLeigh.com

November 1, 2009

2009-11-03T13:40:00.004-07:00

http://www.cnn.com/2009/WORLD/asiapcf/10/04/afghanistan.troops.killed/index.html#cnnSTCText and more intimately here:

http://ricks.foreignpolicy.com/posts/2009/10/10/the_battle_of_cop_keating_an_earwitness_account
Universally, across my unit, largely composed of fellow Iraq vets, we all agree that this deployment has been unlike anything that we’ve experienced before. Sure, each conflict has its own set of unique dynamics, characteristics, and challenges, but the stark contrast between what we’ve seen here and what we saw in Iraq has required 110%, and then some from everyone in our unit. The lack of responsibility in Kabul and the indecision currently in Washington over the desire to make this fight a national priority as is required to successfully introduce a functioning government and a stable society, or to allow it to remain as a under-resourced stalemate that is read about in the third page of the news that remains a breeding ground for expeditionary Islamic extremists, has added to our frustration. Frequently, I’m asked what I’d like sent in care packages. Personally, I’d like to just get more helicopters, soldiers, and unmanned aircraft. If someone can figure out a way to FedEx those out here it’d be greatly appreciated.

So in other news… I went to Pakistan the other day. The Pakistani military was very glad to have the opportunity to meet with us. They would make good used car salesmen. Enough said about that one. Last week I experienced a 6.2 earthquake. I was taking a shower and didn’t think anything of it. Our shower building is close to the landing zone on my base and I assumed that a helicopter had decided to hover over the shower building a little longer than normal. As soon as I got back to my room and saw everything on the floor I realized I might have been mistaken. I just celebrated my 27th Birthday last week. A group of my co-workers and me got together and watched a comedy. I think we all needed that…I think it was the third movie I’ve seen since I’ve been here. There just doesn’t seem like there is enough hours in the day. Birthday’s while deployed are definitely starting to feel normal now. 24th was in Kuwait, 25th in Iraq, and now no 27th here. Colorado was a good place for number 26; hopefully it’s where I’ll be for 28.

A considerable amount of time has passed since you last heard from me. I apologize for that. What you just read is my best attempt at a three month update. Hope all is well with everyone.

Take care, John”

And now the pedestrian, because there are heroes:

Average office building sale prices continue their nominal slide. Matt reports that the average office building sale price is $109.28 per square foot. That’s down mere, cents per square foot from the previous week and I believe, barring some catastrophe, we’re near the bottom.
We’ve written 2 office building sale contracts in the past week (and several leases). And, while 2 weeks don’t make a trend, it’s a positive indicator and tells me that at least some folks have finally accepted the reality of the current political and business climate and are starting to feel optimistic or opportunistic. Now, please realize those deals are not great deals, but they’re deals; they’re a start. And realize that fear & greed drive all markets and I’m starting to feel that we’re on the cusp of a greed-binge.

So what are we seeing on the ground? Here’s a chef’s sampler:

405 South Cascade Avenue is a 29,300 square foot office building whose price dropped from $2,650,000 to $1,950,000. While that’s a move in the right direction, it still falls short of what the assessor says - $1,524,000. Obviously, this still has some room to go; and who drops their price $700,000 in 1 week. Come-on; he’s either been the victim of really bad advice or he’s sobered up.

2993 Broadmoor Valley Road is an 8,016 square foot office building; 1970’s style woody-walk-up, whose price dropped from $649,000 to $589,000. Don’t you love pricing? It’s a real science. It’s called throw-a-dart and hope! In this case, the assessor says the property’s worth much more; $835,000. Who ya gonna believe? (By the way, the new asking price is $246,000 less than the assessed value and is only $73.48 psf. Hmm. Could be an opportunity lurking?

3132 West Colorado Avenue is a peach; it’s a pearl; it’s a house being sold a commercial building. Its former use was Asian massage parlor and I guess that’s commercial. No wait, it gets better; this place actually burned-out; No wait, it gets better; it’s located right next door to a day-labor office. No wait, it gets better; it’s in the main path of the new homeless camp recently written about in the Gazette. And the price continues to drop because nobody wants it. Now there’s a revelation. There is an old axiom that says “Good real estate is good real estate. The rest is a target – for a wrecking ball.”

The Seller dropped his price at 3132 another $10,000 this week; from $209,000 to $199,000. The assessor says a good offer would be $148,500. Are you kidding me? I’d think about it at around $75,000; if I could get 100% financing; if I could get no money down; if I could get non-recourse; if I could get low-interest. Dang, that’s starting to sound like some of the deals we did a couple of years ago. Ah, the good old days.

Re-read John’s letter and read the links.

We can dream big dreams, poke fun at each, argue religion, politics & sports; and worry about bottom lines, profit margins and ROI because there are heroes.

Have a profitable week,

Tim Leigh

By the way, please don’t forget we earn our living helping small business and professional practices with their leasing, buying, selling and managing real estate needs. If you know anybody that needs these types of professional services, please call and let me know. 719-337-9551 or shoot me an e-mail Tim@HoffLeigh.com.

Sincerely,

TJL
Tim Leigh
719-337-9551
Tim@HoffLeigh.com

October 24, 2009

2009-10-26T17:15:00.001-06:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer or Tenant Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
October 24, 2009

Attached is our complete listing of all properties for sale in Colorado Springs, based on property type - office, industrial and condo. This is the most complete listing that we are aware of. It’s our goal to provide this information, updated weekly. We develop these lists by basic research and cross-checking data points from the PPCIE, local broker's individual web sites, The Turner Book and any other public information domain we can find.

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $109.95 (DOWN from $110.64 last week.)
We are currently tracking 147 office buildings for sale.
This is 1,526,152 square feet, which represents a total market value of $167,797,033.

All Market Average Industrial Building Sale Price PSF = $81.92 (DOWN from $82.49 last week.)
We are currently tracking 141 industrial buildings for sale.
This is 1,728,519 square feet, which represents a total market value of $141,603,756.

To View Tim Leigh’s ad, please click below!
http://hoffleigh.com/Doc/Tim%20Leigh.pdf

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/10.23.09.pdf

Tim’s Market Notes

“There’s real comfort in touch. Maybe it’s just the soft touch of a warm hand lazily running up & down the heart of the back; but it’s comforting to a road warrior who’s on the bottom step on the way out the door. It helps him know he’s not traveling down the road of life alone. And nobody likes being alone. . .”

And that lonely big Whoosh you hear is the air rushing out of the commercial real estate bubble. We’re about 2 years into the worst housing crisis in decades and commercial real estate is shaping up as the 2nd half of a double-trouble-bubble. Owners of retail centers, office & industrial buildings, (and the bankers who financed them), face a major blood-letting over the next couple of years as mortgages on those properties come-due.

Somewhere in this writing, I need to mention Pole’s, middle-aged-dating, short ties, Tricksters, Aliens, gold mines, utilities and massage therapists. Wow! Whew!

Much like homeowners who owe more on their mortgage than their house is worth, many commercial property owners have seen the value of their buildings drop like a desperate man diving from Golden Gate Bridge. These crashing values, in many cases, 35% or more, increase the risk-of-loss on hundreds of billions in commercial real estate loans. Many commercial building owners bought at-the-top (there’s a surprise) and are now living through their Nightmare on Elm Street, losing significant balance sheet equity and an attendant loss of purchasing power. If there’s a lesson here, it’s “that in every man’s misadventure is another man’s opportunity.”

Here’s a couple of local, real-time reality-checks; 1) a friend of mine’s Broadmoor Bluffs house was worth well-over $700,000 a couple of years ago; it was just appraised for refinancing at $495,000; and 2) I’ve lowered the asking-sale-price of my building at 2500 North Circle Drive, (which is an exceptionally-clean 4-unit user or investment property), to its 1999 appraised value. That’s about ½ its former balance sheet value. And yes, you can call me if you’d like to discuss the delusion of equity! And no; not even at that price; nobody’s beating a path to my door!

These significant losses in value are expected to put greater stress on small banks. Small banks (assets under $1 billion) are not too big to fail; er, ah, or, “they are small enough to sacrifice.” (And, again from the side-bar; the FDIC just shut down its 100th such bank this year, last week.) To the point of saving many of these banks, The Office of Thrift Supervision says it’s close to finalizing new guidelines for banks on how to modify troubled commercial real estate loans to reduce defaults and foreclosures and to newly account for losses from those loans. Some analysts say the “extend & pretend” practices of lenders, (who extend loan maturities because they don’t want to foreclose and account for the losses), are delaying the process of recovery.

Extend & pretend is a pretty interesting concept. In theory, here’s how it works: As long as the commercial building owner is current on his payments, bankers are willing to delay refinancing for a few years in hopes that the economy and the real estate market will improve. Or stated another way, Mr. Borrower gets newly refinanced at 100% of his existing debt. It’s a Christmas Miracle! Normally, borrowers are forced to show-up with 25% equity to get refinanced. Obviously, Mr. Borrower’s bank doesn’t want to acknowledge the troubled asset. Hmmm . . . That sounds a little fishy to me. (Small banks used to carry about 40% of their loan portfolios in commercial real estate loans; then it ran up to 55%; now (industry-wide) it’s about 75%. Can you imagine why they might not want to foreclose?)

Smart people continue to tell us that, “Notwithstanding that we may be well into a recovery, there’s widespread concern that commercial real estate poses a serious threat to that recovery.” For example, a couple of weeks ago, Helicopter Ben proclaimed to the House Financial Services Committee, “Commercial real estate remains a very serious problem.” No Kidding! How about reading between those lines? (As a Master-of-Understatement, Bernanke’s 2nd career could be as a dark-comedian.)

And, while the market for commercial loans is only about 1/3 the size of residential loans, the problem with commercial loans could actually be worse because there could be a larger percentage of defaults. That’s because, unlike home mortgages which typically run 15 or 30 years, most commercial loans are short-term; normally 3 - 7 years. Since most commercial loans were written at the height of the boom, and because of their short term nature, they are now coming due. Because most borrowers have taken a big hit financially, they typically don’t have any cash to put into their deal (unless they received that miracle elixir, extend & pretend), and without newly required cash they lose their property to foreclosure causing a strong downward pull on the fragile recovery.

Frankly, I’ve always considered that having a short-term commercial loan with no automatic extension provision is like having a rifle leveled at your head, with its missile poised to be fired into the dark recess of your brain with a simple flick of the bank’s itchy trigger finger! Obviously, during the boom-times, because of hoped-for returns, commercial real estate became the Darling Loan for most bankers. However, “Me thinketh the lipstick has been wiped from the Pig’s lips.”

What’s the real world impact? The down-turn forced many, small business to slow-down or get-out of the game. Attendant lay-offs diminished demand for commercial space. Diminished demand caused lower rents. Lower rents caused lower building values. Lower building values produce less community-wide tax collection. Less community-wide tax collection means the government must concoct new ways to fund itself, which normally means a cry for new taxes. What a circle. Sound familiar?

OK, back to the 3rd paragraph; Polacks; I met 2 of them this week. Really cool guys; one rich and one a government employee. Know how I know? One drives a Mercedes; the other drives a Ford. I’ll leave it to you to figure-out which one drives which one. They’re looking for investors for their parking structure in a town whose name I can’t pronounce. It’s a winning concept, though; go to Poland, invest millions in a hole in the ground (subterranean parking structure) and have a socialist government guarantee your cash flow for 30 years. Hmmm. . .

Middle-aged-dating was rampant at the Loggins & Messina concert Monday night. Now I like the look of a good-lookin lady as much as anybody, but hey, if you were a teenager in the 50’s or 60’s, there’s something to be said for high-heels and tight-fitting jeans; they should be left to your grandchildren. And guys; here’s a head’s up. If you’re trying to impress the lady, wear the tie at least to the top of your belt. I’m just saying. Oh, the concert? Big L, little M.

Tricksters and aliens are alive and well, and if you want to see one, go to the San Luis Valley. According to Art Bell, Tricksters are what caused the financial mess we’re in, or maybe it was those darn aliens.

Because you have enough other stuff to worry about, I’m here to tell you to quit worrying about finding the best massage therapist in the city. I’ve found her. She is the definitive massage therapist lady (Janet Shipman). Yup; you can call her at 970-366-6412 or send her an email: JLSlife13@hotmail.com. She’s from Maui; she works at the Garden of the Gods club and when you’re done with your massage, you’ll feel stoned. If you’re not a massage connoisseur, you can’t appreciate that last statement. Suffice to say, she’s the bomb!

I was treated to a 1 man tour of the Drake Power plant this week. They run a tight ship. There is a lot of coal down there! And dang – it was hot. How hot was it? Well, if it was a precursor, I advise going up, not down.

And lastly, finally, thankfully, (I heard you), I am planning to descend 1,600, into a 4’ X 4’ mine shaft this week to investigate a gold mine. I couldn’t get it into my schedule last week. I’ve been told that there is a 3’ wide vein that runs the entire length of the property. If it’s so, you’ll hear from me. If I don’t make it back by next Sunday, call Terry Maketa and have him send out a search party!

In spite of our current economic dysfunction and normal daily troubles, we live in time of great opportunity.
So please, make it a great week!

Sincerely,

TJL
Tim Leigh
719-337-9551
Tim@HoffLeigh.com

October 18, 2009

2009-10-23T08:31:00.005-06:00

Sincerely,

TJL
Tim Leigh
719-337-9551
Tim@HoffLeigh.com

October 11, 2009

2009-10-14T15:11:00.003-06:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer or Tenant Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
October 11, 2009

Attached is our complete listing of all properties for sale in Colorado Springs, based on property type - office, industrial and condo. This is the most complete listing that we are aware of. It’s our goal to provide this information, updated weekly. We develop these lists by basic research and cross-checking data points from the PPCIE, local broker's individual web sites, The Turner Book and any other public information domain we can find.

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $110.96 (DOWN from $111.05 last week.)
We are currently tracking 145 office buildings for sale.
This is 1,496,446 square feet, which represents a total market value of $166,995,083.

All Market Average Industrial Building Sale Price PSF = $82.97 (UP from $82.23 last week.)
We are currently tracking 141 industrial buildings for sale.
This is 1,727,459 square feet, which represents a total market value of $143,332,556.

To View Tim Leigh’s ad, please click below!
http://hoffleigh.com/Doc/Tim%20Leigh.pdf

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/10.9.09.pdf

Tim Leigh’s Market Report

Turner’s book came out a few days ago and he abysmally reports “This 3rd quarter report reveals that there’s been no improvement in absorption – over 1,000,000 square feet of occupied space has been lost. This loss must be dealt with before any meaningful recovery can begin”.

He goes on to report, “All 3 commercial markets lost occupied space, and the square foot vacancy jumped another 1,600,000 feet to an overall total of 9.8 million square feet! This vacancy continues to be the highest amount of empty space ever recorded for the Colorado Springs Metropolitan Area.”

And, adding insult to injury, his figures don’t include 1.4 million of vacant space at Intel and about 500,000 square feet of sub-lease space. And adding further insult to injury, according to our research, his vacancy numbers, while all encompassing, are far short of our numbers, which are building-class specific and tell us that the average class B office building is 38% vacant.

Then there are the likes of William Greiner, who it was reported in the Colorado Springs Business Journal, said “the recovery has begun.” On what planet? I know his numbers may show the recover is under way, but my friends keep telling me they’re not “feeling the love”. I’ve cited many strong, local businesses over the past months, including as recently as last week, who are laying-off in significant numbers. And there’s my friend Mercer, who trades his account on the NY Stock Exchange, who told me that he’s “going to bonds because the market’s ready for a correction”. Another friend of mine was in the Big Apple last week, and as the dollar dropped and gold surged, “I heard he saw” (that’s a long-way around the barn) on the local (NYC) news that smart people believe gold could go to $2,500 an ounce. I’ve had another friend tell me that he expects the stock market to cross the price of gold at 4,000.

It was in that context that I went to the mountains last week to investigate a producing gold mine. The mine owners claim to have over 200,000 ounces of “proven, probable and inferred gold reserves” with a potential value (at $1,000 per ounce) of nearly $200,000,000. (For some context and history - during the 1891 gold rush, 70% of the 15.8 million ounces of gold that was recovered was within 800 feet of the surface.) This (new) gold is nearly twice as deep or deeper! (I remember as a kid; we’d dig a hole in the backyard and laugh about digging our way to China! At the rate they’re digging, they’ll pass China, come-out the other side of the earth and end-up on the moon!)

I saw the shaft (and auger); 1,900 feet horizontally from point A to B and I saw the shaft that goes 400 ft deep to the intersection at point B and from whence there will be another shaft drilled 1,200 deeper to the vein. In fact, I was offered a ride to the bottom of the short-shaft in a 4 ft wide cart. Can you say, “Vertical pine box?” or “Buried, standing-up?” I thanked them for the offer and respectfully demurred. (More context; I was at the top of the US Capital Dome a couple of weeks ago. The short-shaft is as deep as the Capital Dome is high; then deep, deep into the bowls of the earth another 3 times for easily, albeit expensive, recoverable gold! In a masterful understatement, I was told “it is pretty darn dark down there.”

So, what’s your world view? Is the price of oil going up? Is it the end of the dollar? Are we into a real recovery or is the recovery “W” shaped and the market poised to dump again, tricking all the Bulls? What about gold? Ever thought about owning a piece of a legitimate gold mine? If you’re interested in talking about the state of the world, give me a buzz: (719-337-9551) or shoot me an email: Tim@HoffLeigh.com. I’d love to tell you about my trip.

Because of the uncertainty in the world (in general) and in the commercial lending market (in particular) and because commercial lending has become such a moving-target recently, a couple friends asked me to explain how “it” works, so to that end, as friendship dictates, here you go:

The average businessperson (Mr. Borrower) normally borrows money for 2 real estate purposes; 1) to purchase his home, and 2) to purchase his place of business. In that vein, (subtle reference intended), Mr. Borrower normally enlists the services of a competent mortgage lender and a commercial bank.

The mortgage lender typically offers 2 options for home loans: 1) conventional loans, and 2) FHA - (Federal Housing Administration loans). The commercial bank normally offers 2 options for commercial building loans: 1) conventional loans and, 2) SBA - (Small Business Administration loans).

From the SBA website, we learn “The SBA was created in 1953 as an independent agency of the Federal Government to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of the nation.” They go on to say, “We recognize that small business is critical to our economic recovery and strength, to building America’s future and to helping the United States compete in today’s global marketplace.” Wow! Pretty darn lofty goals if they can git er done. And to that end, the SBA offers 2 loan programs generally used by small business borrowers; 1) 7(a) Loans, and 2) 504 Loans.

The 7(a) loan is SBA’s primary loan. It’s totally (100%) funded with money delivered, compliments of your local, personal, commercial bank. Its loans come with a 90% (used to be 70%) SBA guaranty so, when Mr. Borrower’s not otherwise eligible, (imagine that!) with the government guaranty, he magically becomes eligible. (It’s a miracle!) The 7(a) is a variable rate loan with the rate normally re-setting every 3, 5 or 7 years. There’s an SBA policy change afoot, however, where the SBA says it’ll provide 7(a) loans for longer durations and instead of benchmarking loan costs from “the prime-lending-rate”, it will use LIBOR with a larger “cap-on-the-spread” and will in effect, provide longer-term, lower cost, fixed-rate commercial lending. Stay tuned for that!

The 504 loan is funded 10% by the borrower (down payment); 50% by the commercial bank (1st mortgage), 40% by the SBA (2nd mortgage) and if the borrower’s thin, the Seller can “carry-a-note” and thereby, provide up to 50% of the downpayment, effectively making this a 5% down-payment loan. (And no, Bob, “carry-a-note” is not a reference to your singing.) These loans are fixed-rate for a term-certain. Today, for example, Wells Fargo quoted me a 20 year fixed-rate loan with the bank portion at 5.75% and the SBA portion at 4.85%.

FHA loans are described as loans for folks who 1) “don’t have a lot of money” (sounds like a lot of the folks I know after the last 14 months!); 2) who want to keep their monthly payment as low as possible; 3) who are worried about their monthly payments going up; 4) who are worried about qualifying for a loan; and 5) who don’t have perfect credit. (FHA loans provide lower interest rates and longer-term amortizations than commercial loans and, therefore, if you could get an FHA loan on your commercial property, the monthly payments would be significantly less.

My contention has been that commercial lending has been a drag on the economy and that the government ought to look into revising the FHA loan program to include small, owner-occupied commercial buildings. Imagine the possibilities? There would be an immediate rush to re-finance existing debt and a rush to new acquisition. The decrease in monthly payments would create a significant increase in free-cash-flow for other investment or consumption. Say now, there’s an idea! Hmm.

I ain’t no rocket scientist and I’ve had an SBA lender trying to talk me out my outlandish idea, but I can’t help thinking that if we could take an existing, government sponsored loan program and by slightly modifying it, so an entirely new class of borrowers were served, it can’t be all bad.

Hmm.

Have a profitable week!

Sincerely,

TJL
Tim Leigh
719-337-9551
Tim@HoffLeigh.com

October 4, 2009

2009-10-05T15:00:00.005-06:00

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer or Tenant Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
10.04.09

Attached is our complete listing of all properties for sale in Colorado Springs, based on property type - office, industrial and condo. This is the most complete listing that we are aware of. It’s our goal to provide this information, updated weekly. We develop these lists by basic research and cross-checking data points from the PPCIE, local broker's individual web sites, The Turner Book and any other public information domain we can find.

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $110.96 (DOWN from $111.05 last week.)
We are currently tracking 145 office buildings for sale.
This is 1,496,446 square feet, which represents a total market value of $166,995,083.

All Market Average Industrial Building Sale Price PSF = $82.97 (UP from $82.23 last week.)
We are currently tracking 141 industrial buildings for sale.
This is 1,727,459 square feet, which represents a total market value of $143,332,556.

To View Tim Leigh’s ad, please click below!
http://hoffleigh.com/Doc/Tim%20Leigh.pdf

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http://hoffleigh.com/Doc/10.2.09.pdf

Tim’s Market Report

OK! You caught me; I was out of the office last week. I went on the Chamber of Commerce’s annual Washington, DC, Legislative Action Trip. And visiting Washington, DC validates why we live in Colorado; clean air; no traffic; amiable, healthy, good-looking people; abundant opportunity; yada; yada; yada.

I flew out of Denver because Colorado Springs does not offer non-connecting flights (and I don’t like connectors – I miss too many of them) and as you may guess, (I’m a high-maintenance- traveler), I flew 1st Class. Of course, the airline with the animal on the tail says “All of our seats are 1st class!”

The flight was quick & dirty and I was only nominally worse-for-the-wear after 3 hours in a non-reclining seat. Arriving at the Fairmont Hotel, I scored an instant victory. I met Ian Pullan, the General Manager of its sister Fairmont http://www.fairmont.com/orchid in Kona, where I plan to spend a week in January recovering from the depths of the cold Colorado winter. Of course Ian and I “Good O’l Boy’d” each other nearly to death and of course, maybe, there’s a discount in my future!

The trip was a whirlwind but I managed to see the Capital Dome; The Mall and the surrounding memorials; Washington, Lincoln; The Wall; WWII and The Korean War Memorials. I saw the Declaration of Independence; The Constitution; The Bill of Rights; the Magna Carta; and a video of George Bush telling us that he’s the President and “No, I’m not going to eat my broccoli. I don’t like broccoli and my mother can’t make me eat it. I’m the President!”

I visited the National Gallery and saw Leonardo da Vinci’s “Ginevra de’ Benci”, which I was told is the only da Vinci in the US. http://www.nga.gov/fcgi-bin/tinfo_f?object=50724. I visited the National Cathedral and saw Bob’s marble likeness. (I actually met Bob in the hot-tub at the hotel and after remarking about how strong his pecs looked, he encouraged me to hunt-him-down.) Bob spent a lot of time rowing the Potomac in the old days and as it turned out, because he was so well muscled, he became the model for the statue of Adam in the marble mosaic on the side of the building.

I visited the Air & Space Museum and saw the Wright brother’s plane. (Bob Hoff claims that he actually knew the Wright brothers – no kidding; something about being older than dirt!). One of the most interesting facts I learned from visiting that exhibit was that without ice hockey, we’d have no airline or space industry. Seriously; Orville was injured in a hockey game and because his debilitating injury prevented him from further play, he became depressed and prone to deep thought. In his despond, he began formulating his thoughts about bikes & planes. Imagine if he hadn’t been injured . . .

I saw the most viewed tourist attraction (The Capital Dome) via a private tour with Representative Lamborn. The tour was awesome, the art-work amazing and Doug was very affable. We climbed 300 steps to the top of the inside of the capital dome. As we looked at the dome’s art-work, the tour guide told us the same artist painted both, the inside of the dome and the ceiling of the Sistine Chapel. (Now, there’s some Washington-style salesmanship!) If the climb on the inside wasn’t scary enough (I hate heights!) we actually went outside and walked around the top of the dome at the foot of Lady Liberty’s feet. The highlight was the 2 Red Tailed hawks that provided us with a dazzling show of flight; crying a Colorado-shrill-song, they chased each other; stopped in mid-flight; performed 100% roll-overs and generally proved they were free. It was an appropriately choreographed drill as we looked across The Mall and across our nation’s capital.

And of course, as only I could, I managed to get my picture taken with your father in Washington - Barack Hussein Obama. Yup; I met him in the food-court. I guess he was shopping for some new shoes. Apparently he’s been doing a lot of tap dancing. Anyway, if you’d like, shoot me an e-mail and I’ll send you a copy. And, I saw the White House and I saw several outhouses (coincidentally located just adjacent to each other!)

I saw the largest scaffolding project I’ve ever seen. It was the renovation of the Vice President’s office building. I saw it after 3:00 PM, and while I couldn’t read the foreign language construction signs, I presume it was time for Dos Equis, Por favor, because there were no mas workers.

“The Wall” was surrounded by tourist; many of them looking suspiciously Vietnamese. And in a serious moment, I couldn’t help wonder what a waste that war was. The Korean War Memorial was creepy. It’s a platoon of life-sized soldiers trudging forward through tall-grass from a heavily-treed area. I saw it in darkening light so it took on the surreal, foreboding look of an actual war scene. The faces of the soldiers were anguished and terror struck. I could imagine each guy thinking, “What the . . .”

There were good times; starting with the 1st reception to the wrap-up luncheon. The food was terrific, including “a bowl of chicken noodle soup and a chocolate (light on the chocolate, please) milk shake” from room service; to the “Bananas” (some kind of weird crepe, filled with Argentine beef and some “other stuff”), served by the Argentinean Embassy.

And, by the way, if you’re looking for a great real estate opportunity, look no further. The Argentinean Embassy is a fixer-upper of the 1st order. I was amazed at the run-down condition of the embassy’s physical plant. Paint pealing everywhere; I actually tripped walking up a flight of stairs, catching my foot on a loose floor board. The condition of the building spoke volumes about Argentina’s true political & financial condition. Further evidence was presented when I was told that the room-rental-payment for this fete (made by the Chamber), had to be made in-cash. Not a cashier’s check; cash. Hmm. . . Apparently, the CFO said he didn’t understand how the American Banking system worked and required cash. Hmm. Hmm.

So many highlights; so little time. . . I was very impressed with the Secretary of the Interior’s presentation. Oh, yes; Secretary Salazar’s a smooth dude, but, what was impressive was his art collection. According to good authority (John Hazelhurst), he had at least a couple million dollars worth of art in his personal office. Now here’s an idea; let’s hold a Capital Hill garage sale. Heck, if we rifle through enough Big Shot offices, I’ll bet we’d rake in enough to take a meaningful stab correcting our foreign trade deficit.

The reception at the Pew Trust building was amazing, not because the food was great, (because it was merely mediocre), but because it allowed a look at world class architecture. The building featured glass everywhere including in-the-staircases. There are no rival buildings in Colorado Springs that come-close, and while looking at “what’s possible” energized me, it also made me feel (architecturally) like we’re living in Mayberry, RFD.

On to the Brookings Institute and a presentation about Mountain Megapolitan areas, of which the Boulder; Denver; Colorado Springs corridor is one. They told us that there are 5 such areas in the Intermountain West and that they are becoming the new “Mid-West” with strengthening financial & political clout as the Mid-West continues its slide into ignominy & anonymity.

Their story is, “people are tiring of fighting the West (that would be California) and are moving in great numbers to the new Intermountain-West Megapolitan areas”. This migration bodes well for those areas that can capture the economic development opportunities that attend such mass migration. It was interesting to note that these guys spoke about Regionalization from a financial, political, economic development and marketing perspective and they included Colorado Springs with Metro-Denver. They specifically excluded Pueblo saying that their studies indicate that Pueblo will continue to “left-behind” mostly because of the education (blue collar work is “out”; white collar, entrepreneurial, innovative workers are “in”) of their work force. On the other hand, Secretary Salazar promoted the idea of Regionalization but included Colorado Springs with Pueblo and the Arkansas Valley. Maybe this regionalization idea has some merit. Hmm.

We were briefed by Joseph Calcara (Assistant Secretary of Defense). Mr. Calcara is the guy who (literally) signs the check for any large military program dealing with real estate. Can you say “Pinon Canyon”? He said the department of defense loves Ft Carson and there are no plans to “BRAC-it” or downsize it because the Army loves our geography and our people. But, he said we have a gigantic wart in the middle of our collective forehead when it comes to funding new, long-term projects at Ft Carson. The wart is our inability to deliver the Pinon Canyon.

He went on to say, “The Army doesn’t want Pinon as a land-grab, they want it because it mirrors the fighting conditions present in Afghanistan”. He said our inability to “deliver the goods” has already caused Ft Carson to lose $15,000,000, which was budgeted and earmarked for Ft Carson but found its way to Fort Polk instead. He also said, “Obtaining Pinon from a national defense position is critical because we’ll be in Afghanistan for at least the next 10 years”. That’s something to think about as you watch the President sing & dance around this issue.

He laid out a bleak financial picture. He spoke about allocating military dollars in general and how there would be less to spread-around in the future because of our soaring national debt and the attendant interest payments that will be required to service that debt; and how onerous those payments will become because of the market demand for higher interest. He predicted that within the next 3 - 4 years, we could expect national (annual) interest payments near $1 Trillion dollars! http://www.pgpf.org/about/nationaldebt/ That being said, the natural conclusion is that there will be fewer dollars in discretionary military spending that could enhance our community.

We were briefed by men-in-blue, who are trying to figure out how to link cyber technology (everything from the web to phones to anything with electronic linkage) as a national security issue. The air force has taken the lead in the conversation with about 1,500 people currently working on solutions. This is going to be a growth area in the military & private sector. Eventually, they expect to employ something like 35,000 engineers and other bright, computer geeks. Obviously, the demand for electrical engineers will be huge. The gross demand for a smart, creative class will be huge; and since Colorado Springs is currently considered the intellectual home for the Air Force, and since we have world class educational facilities in our hood, you could make a pretty compelling argument that there’s a significant opportunity for us to provide a lot of those needed “quality employees”.

We were briefed by a guy who said, “Without reservation, we should expect our energy costs to double in the next 10 years.” We were told that the President is finally figuring out that his #1 job is “protecting and defending the American people” and that a lot of policy will be driven by that goal. Representative Lamborn reiterated that the National Cemetery is on track. It’s going to be located just south of Colorado Springs but north of the Pueblo County line. He said there will be a new ICE office opening in Colorado Springs. (Psst - somebody needs to pass this on to him – it’s already here – at the corner of Wahsatch & Pikes Peak.)

I pitched my Big Idea to Brian Appel, Senator Bennet’s legislative counsel for the Finance Committee. My idea is so simple that I’m surprised it hasn’t yet been vetted. It’s the idea of putting FHA-style lending on small, owner-occupied commercial buildings

These loans would require less money down (3% in most cases); would fix the interest rate for 30 years; would fix the monthly payment (unless there was a local tax increase) for 30 years; would allow the buyer to sensibly plan his financial future; would allow the borrower to earn real equity over time because of the amortizing effect of the loan; would cause a tremendous, immediate flow of funds from refinancing; (and) would provide the national economy with another bubble option with great opportunities for thievery, graft and corruption – imagine the possibilities - these loans could be bundled and resold several times! Frankly, I can’t think of one reason not to enact my program.

Michele Bachmann is the 1st republican woman elected to the US House from Minnesota. John Hazelhurst and I were looking for someone famous to meet and he told me she was in the hallway, (and I naturally presumed she was looking for a job). I took the cue and introduced myself. She remembers Tony Kinkel. (Tony’s fame comes from his tenure as the State Senator from Cass Lake, Minnesota, where you can buy a 3 bedroom house for $5,000 and where LeRoy’s minnows are guaranteed to catch fish or die trying. She is Sara’s heir apparent; she’s bright, articulate and easy on your eyes. She is married to a dairy farmer who no longer milks cows. Sounds like “Green Acres is the place to be; farm living is the life for me!”

The stated purpose of the trip was to learn about economic vitality, entrepreneurship and innovation. And I came away with the realization that there will be a couple of central drivers in our economy, in the future; health care (and health care-related industry) and energy (our quest for energy independence and our quest for innovative and sustainable new ways to power the physical machine that drives our economic system). It’s now apparent that what we’re doing ain’t working. And it’s become apparent that we need some type of technological renaissance to lead us into a long-term, financially sustainable and globally competitive economy. (I can say that and look smart, not because I am, but because there’s an historical precedent for this.) If you merely look back to the 1920’s and the electrification of the US, the discovery and innovations brought about by oil, the auto, etc, and you can predict where we’re heading.

Returning from Washington was a treat, but trying to “put on a happy face” in the midst of the controversy surrounding the various tax policy issues our city faces in the midst of continuing, local, financial & business deterioration is a trick. Just last night, I was told by a friend of mine who owns a large electrical contracting company, except for his government contracts, he would have to shut his doors and lay-off around 150 guys. Now there’s a scary Halloween thought.

Have a profitable week!

Sincerely,

TJL
Tim Leigh
719-337-9551
Tim@HoffLeigh.com