Weekly Market Reports: 2009

December 29, 2009

December 27, 2009

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 21, 2009

December 20, 2009

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

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 = $106.47 (DOWN from $106.48 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 $167,968,533.

All Market Average Industrial Building Sale Price PSF = $81.52 (DOWN from $81.68 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/12.16.09.pdf

Tim’s Market Report

I was walking The Freedom Fighters (Belle & Lindsay) through Monument Valley Park a few hours ago. It was a beautiful afternoon for a walk except there were no squirrels in sight. I guess they were all fast asleep, dreaming that St Nick would soon be delivering fresh bundles of acorns. I mean, squirrels dream, too, don’t they? I admit it; I was breaking the law; The Freedom Fighters were “off-leash”. Now don’t get all wound-up. We’ve started calling Belle “Angry Tiny Tim” because after she was hit by Rackley’s car, she’s been fairly crippled and can only keep pace for short distances. Lindsay on the other hand is just old, slow and has bad hips; but she’s got a great bark. She’s a deep baritone!

We made the round to the end of the sidewalk and on the return we encountered a cleanly shaven man dressed in a camo-green jacket with a 50 gallon, black plastic bag draped over his shoulder. He looked like a hobo; except clean. Now, I know I’m a known wall-flower but I was compelled to ask “Hey, Buddy, are you a homeless guy?” Turns out he was (and is). His name is John Robert Rohlfs Bruffett. And turns out he’s somewhat of a celebrity homeless guy. He brags about having met the Mayor and being on local TV and national TV. I asked “Would you tell me what it’s like being homeless?” and before you knew it, we were at Denny’s over a hot cup of Joe – no sugar please.

I was interested in learning how he became homeless and what a typical day looked like. John said he’d be happy to tell me all about himself, but that I should be prepared, it wasn’t pretty. This is his story.

You know how some people “come from money”? John Robert comes from “no money”. In fact, he likens his background to “Roman families”. He says that “back in Roman days, there were families that were groomed for politics or riches or to be poor. Surely, our family was groomed to be poor.” According to John, everybody in his family is poor.

One of his early recollections was the time he testified that a particular German Shepard was really a friendly dog. Because he was a kid; and from a poor family, his testimony carried no weight and the dog was killed as vicious. Then somebody offered his parents $100 for their collie and they sold it. His dad was put in jail for passing bad checks. While his dad was gone, he was told to “run-out and fetch donuts for breakfast”. He did, and on his return the social services people were waiting to take him to a “better place”.

That’s when he went to Gene & Louise Hick’s place in Galena, MO. He was in the 1st grade; he went to 1st grade once and 2nd grade twice; said he injured his head in a fall and couldn’t quite “get 2nd grade the first time”. That’s also when he first encountered sexual abuse. He could recall the room; where the mirrors were; the drawer where the “sex-toys” were kept; the red & black velvet wallpaper. Gene liked little boys and the little Philippine girl. There were 6 of them; boys and a girl. He could remember the colors and sounds and smell. He still can, and it still haunts him. He always wondered what happened to the little girl. The older kid, Jesse James was abused too, but he ran away.

After about a year with the Hicks’, John was “adopted-out” to Dr. Rohlfs and his wife. Dr. Rohlfs like to use the wooden paddle; a lot. John recalls he got “lots of boards”. He stayed with the Rohlfs until he was picked up for burglary and sent to prison – the 1st time. He was probably around 14 years old. He was sent to “Kiddie-Camp” (otherwise known as “Gladiator School”) for 5 years; it was where you learned to fight. He was released after 18 months. He didn’t learn to fight. He is an artist. He doesn’t like violence.

After his release he fairly immediately burgled another home, was caught and sent to “The Bighouse” in Cameron, MO for 7 years. The Bighouse was a level 4 correctional facility. He did his time; got out; and you guessed it, burgled another home. This time he was sent Algoa State Penitentiary. This was where they housed sex offenders and “bad people”. He was eventually “rolled” from Algoa to Farmington, near Boot Hill.

While on his “3rd time around” he experienced mental problems. He said “he became insane but he’s better now”. Said they put him on drugs “worse than the Ritalin”. He finally “pulled his time, did his rehab, got work release” and became an electrician’s tech. When he got out of jail the last time, his natural Mother picked him up with his uncle, who is about his age. (John was born July 24, 1972. I think it’s important to note the date. In many cases it seems we don’t associate an age with homelessness. Over the past month, I’ve met young kids, who I’m told are the “mean ones” and grandfathers who are all homeless. John was 2 years old when I graduated from high school. He considers himself “old”.)

While employed as an electrician tech, he got an apartment for $295 per month and he got a girlfriend. She was into drugs. He wasn’t. He told her to leave. She wouldn’t. He ran his truck into her car. I asked if he ever hit her and he said he didn’t dare. She would have beaten him.

He made his way to Colorado Springs and professes, “I love this place, man.” He bought an ’86 Chevy Suburban for $4,100 and is working for LUCE as a call center employee for $9.00 per hour. He’s living in the car. He says it’s safer than living along the rivers or in the camps. “Where do you park?” I asked. “Anywhere I can so I don’t get into trouble. Right now, I’m in the Safeway parking lot but have to move every day or so.”

He normally wakes with the sunrise and retires with the sunset. He normally sleeps in a sleeping bag with another wrapped around and a blanket over the top. The blanket normally whisks away the moisture. He normally cleans-up at ESM and does his laundry with the Oriental guys on north Weber Street. “I can do all my laundry for less than $3.00”.

As chaotic as this year has been for many of us, as Bob Hoff used to say, “Even when it’s bad, it ain’t so bad.”

Merry Christmas and may God Bless us all!

Sincerely,

Tim Leigh
Imagine The Possibilities!

719-337-9551
Tim@HoffLeigh.com

December 14, 2009

December 13, 2009

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 8, 2009

December 7, 2009

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 7, 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 = $106.94 (DOWN from $107.07 last week.)
We are currently tracking 146 office buildings for sale.
This is 1,547,829 square feet, which represents a total market value of $165,528,633.

All Market Average Industrial Building Sale Price PSF = $81.92 (DOWN from $82.04 last week.)
We are currently tracking 141 industrial buildings for sale.
This is 1,746,964 square feet, which represents a total market value of $143,113,106.

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/12.02.09.pdf

Tim’s Market Report

There’s something about fresh mountain air and a steaming cup of freshly brewed coffee shared in good fellowship around a smoky campfire; with the sound of a cascading stream and a fresh blanket of newly fallen snow, the earth seems reborn and the opportunities limitless. . . Is this heaven?

No, it’s Colorado Springs; and I read Danny Chacon’s report about a proposal to “make it illegal to camp or set-up or occupy a tent, shack or other temporary shelter that could be used for camping on any public property.” On the face of it, that sounds reasonable, but like most things in life, “on the face of it” is not that easy. I figured if I were King of the World, I’d likely have to have an opinion on the matter, so I decided to spend the better part of Sunday morning checking-it-out.

So, much to my wife’s chagrin, I dug-out my worst looking blue-jean-jacket and well-worn leather gloves. (I was trained in counter-intelligence in the Army, and because of that training, was an expert in disguise; I knew what I was doing.) Except the darn jacket’s only been worn once; and my well-worn leather gloves; well, let’s just say they their worst day was the trip to the CC vs. DU game at the world arena. When you think of me stealthily blending in with the homeless, for reconnaissance, think of a piano key-board; something about ebony & ivory. At any rate, disguised or not, I donned my Sunday gone-a-courting best and went to call-on the neighbors.

I expected to find drunks and drug addicts; abusive and menacing people; and generally putting myself in harm’s way in search of information. In fact, as I pulled out of the drive-way, I cautioned my wife, “If I don’t check-in by high noon, call the Sheriff!”

The most visible homeless encampment is along I-25, just south of Cimarron. And while you can see plenty as a drive-by, there’s a large earthen-berm shielding the larger population. From I-25, you can easily see Richard Tenant’s place. It’s the big, blue, square tent with the American flag normally planted out-front, and his dog-tent. Yes, he has a separate tent for TJ, the dog. (TJ’s nice, but he’s nosy. He keeps the critters at bay; especially the bear that was there the other night.) I suppose there is a dozen or so small camps that make-up the neighborhood and to the folks who live there, it is “their neighborhood”. And make no mistake; as Andy told me, “If you wander into our neighborhood and we don’t like you or feel threatened, we have “frontier justice”. He told me of a recent instance where an uninvited intruder stumbled drunk into camp one night and was swiftly met with a knife to his throat and an invitation to leave; now. He did.

Richard’s place seems comfortable enough I guess, at least as far as an urban-tent can be. He’s been in place since April and he’s making it more comfortable by-the-day; much like you’d fix-up your home. I told him that many consider homeless people a nuisance and think it’s disgusting that they use Fountain Creek as a private toilet. He told me he thought that would be disgusting, too. We both laughed. Then he told me how it really works. Richard explained that most of the “clean neighborhoods” use potty-holes that are dug into the ground throughout the neighborhood. They dig a hole; use it for a couple of weeks and bury it. Others use makeshift potties, (especially Penny & Maureen – the only 2 women in the camp). Somebody comes along about every 2 weeks (they think from the utilities department) and retrieves the effluent, which, in the meantime, is stored in baggie-like containers until it’s hauled off. I thought, “This gives new meaning to public/private partnerships!”

I met Richard, Andy, Penny, Mo, Indian Kenny, Train-Wreck (so named because he was “runned over by a danged old train” – seriously – and lived), Rocky, Keith, Andy, Robert (who was high as a kite), Mike “the musician” and Ed Kramer. Ed was a journeyman carpenter who claims to have worked for GE Johnson and Murphy Construction once. Indian Kenny said he was a journeyman glazer and Andy said he has 3 separate degrees and was previously some kind of engineer earning over $85,000 per year! I took Indian Kenny’s glasses and promised to get them fixed. He can’t really see without them and has no-clue who to call. I thought, “Damn, something that simple.” He takes Dilantin every day for his seizure disorder.

Andy’s place is the most elaborate and he seems to be the Godfather. He has a solar cell powering his place; he has battery back-up if that doesn’t work and he has a gas generator with enough electric to run his DVD and computer and other “toys”. He has a clock hung on the wall and a closet with clothes nicely hung and well sorted. Are you kidding me? He’s been building his place for the past 3 years and brags about his 9’ long, log-ceiling beams and 6 tons of foundation dirt. Folks, here’s a newsflash - he’s not building a temporary place; he’s building for the next generation! His place reminds me of a dung-built, earthen home I saw in an historic trip across the plains of North Dakota or Laura Ingalls Wilder’s homestead.

I had coffee with Indian Kenny, Ed and Andy. It was amazingly good. It was not Starbuck’s. It was better; fresh brewed instant with a taint of sugar. They brewed it while I waited, over a wood fire in their living room. The living room is a 4 sided tent shared by everyone with no room for anyone to sleep. It’s strictly a day-room. It’s the community gathering spot where the day’s events and projects, which normally include the trek to the Marion House or the New Hope Shelter, are planned and discussed.

I asked everyone what they feared most. Penny & Mo, the only women in the camp, feared sexual assault from someone outside their neighborhood. Mo said she wouldn’t walk the trails by herself. (OK people, there is a message here. If a homeless lady, who knows the ropes & danger won’t walk the trails by herself, ding, ding, ding, “Houston, we have a problem!”) Penny’s biggest fear is freezing to death. Everyone agreed that forcing them to move would be terrible but realized that it’s likely; they just hoped that it could be postponed until spring. Ed said he heard that there are fewer homeless camps now than there were during the Great Depression; because homeless people camped there during the Depression, they believe there’s an historical precedent for their living there now; and they think we’re living through a new, Great Depression because they all claim to want jobs, but say “There just ain’t no jobs!”

I met Dave. Dave zealously and dangerously left his wife & kid in the car parked on the side of I-25. I asked him what he was doing and he said, “I came to see what the guys need.” I told him, by his dress, he didn’t look like he could do much and he replied, “I have friends and we can bring food and blankets and anything else. The shelters are full and Jesus told me in church this morning that I should help these people so I came right away.” And that seems to be the feeling of many church and para-church organizations. Indian Kenny told me “It’s not possible to starve-to-death in Colorado Springs. He said “There are too many do-gooders.” There may be too many well intentioned Dave’s. I don’t know. I know Penny has over a month’s supply of toilet paper in her tent; she had beacon and eggs for breakfast and told “her old man” that “There’s nothing I need,” as he left for the grocery store.

Rocky has a tent; he lives by himself with his neighbor’s help. He can’t walk. He has something wrong with his hips. Keith is “slow”. He has his own tent. His neighbor’s help him too. He’s giving up on Colorado Springs and leaving for Durango.

I explained that the city was tired of panhandlers and being accosted by homeless people and I asked what message they wanted me hear. They explained that there are 3 classes of homeless in Colorado Springs; the drug addicts and drunks – they’re the bad ones; they mostly live across from the X-Press Motel at Cimarron & 8th Street and on the “north-end”, which in homeless parlance is the Fillmore & I-25 area. Those are the dangerous places. They all stay away from those areas and advised me to do so, too. (Of course I immediately went there, and if you want to know what I found, call or email me.) They said those guys need the 1 way bus ticket out of Dodge.

Then they said there are 2 other groups of homeless; the sick & disabled who need help; and 3) them. Those who choose to live on the street; off-the-grid and who have lived in the area for years; those who formerly had jobs and because of the circumstances of life, ran out of gas. Penny attended Coronado and graduated from Palmer for darn-sake!

There’s something about fresh mountain air and a steaming cup of freshly brewed coffee shared in good fellowship around a smoky campfire.

And there are no easy answers.

Sincerely,

Tim Leigh
Imagine The Possibilities!

719-337-9551
Tim@HoffLeigh.com

November 30, 2009

November 29, 2009

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 23, 2009

November 22, 2009

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 22, 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 = $107.07 (DOWN from $107.94 last week.)
We are currently tracking 147 office buildings for sale.
This is 1,554,938 square feet, which represents a total market value of $166,483,833.

All Market Average Industrial Building Sale Price PSF = $82.04 (UP from $82.02 last week.)
We are currently tracking 142 industrial buildings for sale.
This is 1,765,687 square feet, which represents a total market value of $144,828,756.

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/11.18.09.pdf

Tim’s Column

“There are no cats in America and the streets are paved with cheese.” I guess that’s why we spend & spend & spend without worrying about repercussions; something about drinking & soldiering or the after effects of the combination. After all, we’ve got a national debt over $12 Trillion and a record 2009 national deficit over $1.4 Trillion and our father in Washington seems to think everything’s alright. Personally, I’d like to check his Coolaide – maybe he’s buying that special blend from Alice’s restaurant or the Hotel California.

But there’s good news. The holiday season’s upon us. And, hey, while driving into the office this morning it was confirmed. I heard the 1st Christmas music of the season. I know; it’s not even Thanksgiving, but what the heck, you can never get too much Bing Crosby, Dean Martin or those darn Chipmunks! Ah yes, those darn little chipmunks. They’re so cute! You know; with the little stripe down the back and those long whiskers! Don’t you just want to eat one? Alvin. . . ALVIN!!

According to Dr. Bernanke’s latest speech to the New York Economics Club, “Financial conditions are better today than they were a year ago but significant challenges remain.” Ah, say that again?

But, more good news; I was able to get a quick trip to the Keys last weekend. And while Colorado Springs was enjoying an early holiday coloring of white & windy, Lise & I were enjoying blue Caribbean water; cigarette boats zipping along over 175 miles per hour, (of course, they’ve got nothing on me after my 3rd cup of coffee), and the sun setting on Mallory Square. We saw 5 toed cats at Hemingway House; we saw the overrated & overpriced Conch Train Tour, the Southern-most point in the US, (even though I know I saw that in Kona last January), and we saw whips & leather shops; clothing-optional bars, toured Ft Zachary Taylor; Ripley’s Believe It or Not and the Butterfly Museum. Whew. I’m tired just recounting it.

The Dr. went on to say, “Demand for commercial property has dropped as the economy has weakened, leading to significant declines in property values, increased vacancy rates & falling rents. (No kidding!) These poor fundamentals have caused sharp deterioration in the credit quality of CRE loans on banks’ books and of the loans that back commercial mortgage-backed securities (CMBS).

Pressures may be particularly acute at smaller regional & community banks that entered the crisis with high concentrations of CRE loans. In response, banks have been reducing their exposure to these loans quite rapidly in recent months. (That’s called “not making new loans and foreclosing when they have too.) Meanwhile, the market for securitizations backed by these loans remains all but closed. (Er - nobody wants to buy the junk!)

With nearly $500 Billion of CRE loans scheduled to mature annually over the next few years, the performance of this sector depends critically on the ability of borrowers to refinance many of those loans.” (And good luck with that!)

We went from Key West to the center of the Universe; uh, that would be Miami Beach, Bob; specifically, South Beach. If there’s anything you want and you can’t find it at South Beach, it doesn’t exist. We stayed at The Ritz Carlton. At least I thought it was a Ritz Carlton; actually, I think we were tricked and it was really a Ritz-Carmelton. It was one of the worst hotel experiences I’ve ever had. You’ll have to call me to get more details. Suffice to say, our balcony was the roof-escape to the air conditioning deck. And we saw the carpets roll-up at 4:30 AM on our way to catch the early morning flight to sanity. Heck, we even saw something I’ve never seen. After a big night, the ladies formed a queue at the 5 Guys’ Burgers. I know 5 Guys is good; but I always thought Denny’s was “the place” at that time of day – er, night.

Bernanke said, “Since December 2007, the US economy has lost, on net, about 8 million private sector jobs (notice, there’s no mention of public sector job losses) and the unemployment rate has risen from less than 5% to more than 10%. Both the decline in jobs and the increase in the unemployment rate have been more severe than in any other recession since WW II.”

Do you remember the trip to the dentist when you were a kid? I do; I went to Dr. Skyberg. He finally committed suicide. He always told my parents that I had a mouth “full of trouble.” What a ruse; he’d drill without Novocain and fill the voids with mercury, surely, slowly poising me one bicuspid at time. I still hear the shrill-siren of the drill and smell the burning enamel.

And while he can’t predict what 2010 will look like, Bernanke says on the one hand we should be OK but on the other hand, we might not be. Oh, where’s the Novocain?

Bernanke said that besides cutting jobs, many employers have reduced hours for the workers they’ve retained. The average work week’s fallen to 33 hours, (the lowest level in since WW II.) He says there are more unemployed than the statistics show and they’re working fewer hours. And here’s something; I actually fall into that category. I’m only working half days now; usually 5:00 – 5:00.

Because there are so many people willing to work (who can’t find a job), supply & demand metrics will dictate that wages remain low, household incomes will therefore remain low and consumers won’t have cash. There’s a Merry Christmas thought. Ok, we’re a 70% consumer based economy and nobody has money. Hmm. . .

Bernanke’s last line is the classic, “The best thing we can say about the labor market right now is that it may be getting worse more slowly.” Awesome!

But as bad as the picture is painted, I’d like to focus on the positive. After all, it’s Thanksgiving week and it’s time to focus on good things.

I’d like to point out, that as bad as you have it, you should realize you’re in good company. Everybody’s got something. But, you know what? The last time I checked we still live in America. It’s the greatest country on earth, and we know that with brow sweat & elbow grease, in spite of government intrusion & stupidity, we can still accomplish mighty deeds.

So, have a blessed holiday and give thanks to someone for something.

Imagine The Possibilities!

Sincerely,

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

November 16, 2009

November 15, 2009

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 10, 2009

November 8, 2009

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 3, 2009

November 1, 2009

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 26, 2009

October 24, 2009

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