June 20, 2008

Tim Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
4445 Northpark Drive, Suite 200
Colorado Springs, CO 80907
June 20, 2008

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 is 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.

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All Market Average Office Building Sale Price PSF = $112.91
There are currently 120 office buildings for sale.
This is 1,145,489 square feet, which represents a total market value of $129,336,593
If sold for a 7% average real estate commission, these sales would generate $9,053,561 in commissions.


All Market Average Warehouse Building Sale Price PSF = $69.81
There are currently 85 industrial buildings for sale.
This is 1,570,077 square feet, which represents a total market value of $109,601,275.
If sold for a 7% average real estate commission, these sales would generate $7,672,089 in commissions.


All Market Average Office Condo Sale Price PSF = $164.40
There are currently 94 office condos for sale.
This is 198,757 square feet, which represents a total market value of $32,676,190.
If sold for a 7% average real estate commission, these sales would generate $2,287,333 in commissions.


All Market Average Industrial Condo Sale Price PSF = $83.01
There are currently 31 industrial condos for sale.
This is 106,962 square feet, which represents a total market value of $8,878,523.
If sold for a 7% average real estate commission, these sales would generate $621,496 in commissions.

I have been chastised by many for my negative tone over the past few weeks. I don't mean to be negative. In fact, those of you who know me well, know that by nature, I'm very optomistic generally, and optomistic about the our future. However, I always try to be realistic and report what I see as it relates to our local commercial real estate market. Frankly, I've seen a mixed-bag.

Mike Cafasso, President of ABC Bank, told me that he's getting more positive signals about our (Colorado Springs) economy. He said interest rate futures point to increasing rates by September. Matt Roselle, the district manager for Farmer's Insurance (Matt employs over 40 full-time agents), is looking for more agents to meet the demand for their insurance products. He told me that Farmers is a well guarded secret and that they actually offer competitive commercial property insurance rates. And you just thought they did auto! Heck, I thought they were the company with the Gecco.

I was in a meeting where we discussed moving the Air Force Academy's Visitor Center "off-campus". The idea is to develop a joint facility that can promote the state, the city and the AFA. The problem is that heightened security at the AFA has caused the state's number 1 man-made tourist attraction (the visitor center) to fall off the charts. I was in another meeting where the Powers Boulevard extension was discussed and it was said that that roadway would likely be completed by private finacing, with public reimbursement, by the fall of 2010.

Our business has always been a leading indicator of the economy because we deal with so many small and mid-sized businesses. We get to hear about the trials and tribulations from the ground up. We hear positive & negative and we are called-on to examine financial statements and credit. From my experience, I beleive that there is still a lack of liquidity for the average small business and the average guy is still anxiously awaiting the results of the election. There is a lot of motion, but not finality to a lot of deals.

As for our business, we wrote more leases and sale contracts this week than we have in any previous other single week this year. On the other hand, the Gazette reported that we are losing 1,500 jobs associated with HP. Can you say - Ugh! We need more jobs! Jobs create income and income creates the opportunity for consumers to demand all kind of product. When that happens is when the turn-around begins in earnest.

Sincerely,

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

To view our Office Building Matrix List please click below
http://hoffleigh.com/OfficeInsider.aspx

To veiw our Industrial Building Matrix List please click below
http://hoffleigh.com/IndustrialInsider.aspx

To veiw our Office Condo Matrix List please click below
http://hoffleigh.com/HLIOfficeCondos.aspx