February 2, 2009

Tim Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
4445 Northpark Drive, Suite 200
Colorado Springs, CO 80907
February 2, 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 = $113.29 (DOWN from $113.38 last week.)
We are currently tracking 109 office buildings for sale.
This is 1,156,399 square feet, which represents a total market value of $131,006,800.

All Market Average Industrial Building Sale Price PSF = $73.52 (DOWN from $73.59 last week.)
We are currently tracking 91 industrial buildings for sale.
This is 1,284,119 square feet, which represents a total market value of $94,493,606.

Somewhat interesting Property for Sale or Lease:

UPDATES

2500 North Circle Drive: This is a signature building located at the corner of Van Buren & Circle Drive. It’s a very clean, brick building with new HVAC and a 20 year roof. It’s 7,100 square feet and the tenant has just committed to a new 5 year lease. The cash flow provides a solid 9% Cap Rate with annually increasing rent. This is a NON-advertised property for sale, offered exclusively to you, the readers of this column. The asking price is $825,000.

315 South Wahsatch Avenue: This is another NON-advertised property for sale. The NOI is just north of $40,000; but the note fully amortizes in 5 years. At $725,000, these 90 storage units + the 1,500 sf newly renovated office building is a deal.

2760 North Academy Boulevard: WE HAD A GOOD ACTIVITY ON THIS PROPERTY LAST WEEK. This is a 13,177 square foot office building with guaranteed income of $3,750 per month for 12 months (from 1/3 of the space). The firm asking price is $540,000. That’s $40.98 per square foot. Located on the back of Palmer Park, the views, parking, access, location and upside in the income make this a winner. If it’s such a winner, why’s it for sale or vacant? Good question. The Boy Scouts used to occupy the property and have recently moved from here to there. Don’t look a gift horse in the mouth. Look at this building; buy it and prosper! (This is the 5th least expensive office building for sale in Colorado Springs!)

3645 Jeannine Drive: UNDER CONTRACT WITH A BACK-UP OFFER! This is the 47,596 square foot, multi-tenant, office/warehouse building that I’ve been pitching for the past few months.

3707 Parkmoor Village Drive: THE BANK DIDN’T ACCEPT THE OFFER; THE NEW ASKING PRICE IS $50 PSF. This is a 2 building office project built in the 1908’s. The buildings are typical wood & frame construction. They are fully-occupied by Mom & Pop, who normally occupy Class B property and who have Joe the Plumber’s credit. Once in place, Mom & Pop normally stay forever.

5755 Industrial Place: This is a 15,351 square foot, multi-tenant industrial building for sale. I purchased this property some time ago with the idea of re-selling it to a government contractor who needs to near Peterson Air Force Base. It’s the very 1st building located next to the new West Entrance to Peterson. The asking price is only $80 per square foot ($1,228,000). With its location & the superior condition of the physical plant, this is a true-value. We also have experienced the agony of defeat; where we’ve had a couple of tenants move-out under the cloak of darkness. As a result, we’ve slashed our lease rates to secure new tenants. If you know anybody that wants this location and a very clean work-space, give me a buzz.

13570 Meadowgrass: This is our office condo project. True to market dynamics, and true to the advice I dish-out, as painful as it is, (which goes to show, I share your pain!) we have lowered our prices to get a sale. As a percentage, we have reduced our pricing by 25%. For office condos on the north end; with I-25 visibility and unbelievable views of the Air Force Academy & the Front Range, this is the ticket.

3729 Austin Bluffs Parkway: This is a retail condo for sale. The unit is 2,075 square feet. It is priced, so a buyer would be paying less for occupancy costs than if he were a tenant. This is a great option for someone looking to be near Academy & Austin Bluffs and wants to be in the retail industry. I tell my friends in retail, “Buy your building and build equity while you wait for your customers.”

. . . To prove that it’s possible, consider that 610 1ST Street and 1430 South 21st Street are now 100% leased. The building owners got their pricing in line with demand. . .

Want to know more? Tim@HoffLeigh.com
100’s of listings on our web site www.HoffLeigh.com.
719-630-2277

Tim’s Market Notes:

Lise and I have been traveling a lot lately; the Big Island, Vail; Florence (ah, that would be Colorado, Bob); Georgetown, Idaho Springs, etc., and as diverse as these locations are, they have much in common. They are individual economic entities trying to find a voice in the global marketplace; they’re individual economic entities trying to find relevance. When you travel you see a lot of crazy things; the cashmere sweater in Vail for $785; or the woman’s shirt for $1,000! What did Forest Gump say, “Stupid is as stupid does?” Florence is the self-proclaimed antique-gallery city. Georgetown is home to ice fishing (are you nuts?) and Idaho Springs, with its 50% vacancy is 50% occupied by restaurants. The food must be half price or half good.

I’ve been thinking a lot lately about a conversation that’s currently running its course through our city. It’s the same conversation that should be running through all these various locations. At its base is a question “How do you remain relevant in a global marketplace insulate yourself from “bad stuff” and prosper in the future?” How do you draw occupants to Idaho Springs; how do you draw more ice fishermen to Georgetown; how to you draw antique buyers to Florence; how to you draw Nuevo Riche to Vail; how do you draw new growth and development to Colorado Springs?

To that question, I recently participated in a focus-group conversation as part of a city-wide initiative called Operation 6035. (If you want to participate, go to www.operation6035.com and complete the online survey.) The operation’s namesake “6035” is a catchy reflection Colorado Springs’ elevation, 6,035 feet above sea level, and according to Chris Jenkins, “. . . it’s a unique approach to drawing insight from all aspects of our community to cultivate a shared vision for the future of the Pikes Peak region.” Hmmm, there’s an idea in there; shared vision; shared values; leadership; good thoughts, Chris.

According to Pamela Shockley, the chancellor of UCCS, “Opportunities for growth are extremely limited for cities in these tight economic times.” That’s the understatement of the week. That’s because, globally, we’re (individuals, small businesses and city’s) all fighting for the same piece of economic pie. She adds, “Communities like ours are competing fiercely to lure businesses.” Hmmm, identify your strengths; capitalize on your strengths; tell your story. We have the technology. This recalls to my mind - “If you build it, they will come.” By the way, here’s a drop quiz, “What’s marketing?” Wrong! Stated simply, “Marketing is telling your story and letting the customer find you.” What’s good marketing? “Knowing your story well & telling it often.”

Operation 6035 has 7 phases; Project Set-Up and Community Outreach; Community Economic & Market Assessment; Site Selection Competitiveness Assessment; Target Industry Analysis; Organizational Competitive Assessment; Creative Initiatives Recommendations; Economic Development Strategic Plan & Community Roll-Out. The idea is to develop a unified community voice stating who & what we are and who and what we want to become and to present that voice in the global marketplace.

At the end of the day, we’re all in a global marketplace. Those who refuse to recognize that base fact will be left behind. To our city’s credit, we’re attempting to create a storyline so we can become part of the conversation. So we can be relevant. At the end of the day, we’re either goring forward or backward. There’s no in-between. There’s no status quo. You’re either living or dying. You’re either vibrant or morose. That’s to say, we must be a community of builders, doers and developers; and not developers for sake of development but developers for the future; smart developers, redeploying existing infrastructure & assets; smart developers; green developers with an eye on the future.

And what relevance is this to the typical commercial property owner in Colorado Springs? If you don’t understand these concepts and grab onto the future you’ll be left behind. There’s an absolute connection between growth, development and the vacancy rate in your building.

So, what do we have to offer? Off the top of my head I can think of a few things: Our climate (over 300 sunny days per year); Pikes Peak, parks, open space, low crime rates; good traffic flow; good airport; great utilities infrastructure; burgeoning university & technical trade opportunities; we’re the fittest city in America; we’re the 9th best place to raise a family; we’re the 3rd best city to live-in; we’re the 5th best city to work & play-in; we’re the 28th best city in which to launch a new business; we’re the 10th smartest metropolitan statistical area; we’re one of the top 20 cities with clean air; we’re the 7th safest city shielded from natural disasters; we’re the 9th most well-read city; our library is the 9th best large library system in America; our neighbor, Little Manitou Springs, is the 2nd Coolest Small Town in America; we’re the 7th best place for growing home prices; UCCS is continually ranked “among the best” and we were recently named “Dog Town USA - 2008”.

I noticed that the unemployment rate increased to over 7% this week. I know; that stinks. But the good news is 93% are still working. Our community has assets; your business has assets; you have assets. While we can’t solve the macro economic problems of the world, we can deploy our assets and work on controlling the problems in our own universe.

Want to know more? Contact me at Tim@HoffLeigh.com

Vendors we like:

We offer a property management & property maintenance concierge service where we can help you find any vendor for any property need. For example, if you need help with snow removal, electrical repairs, plumbing or heating or lawn mowing, we can assist with that work. We bill on an hourly basis. It’s like having a full-time property manager at a fraction of the cost. If you’d like to know more about this service, call me - 719-630-2277.

Focus on Charity

The Salvation Army – they feed 52,000 meals per year
The American Red Cross – they do the emergency assist at every disaster in the Pikes Peak region
The Boy Scouts – they are 10,000 kids strong, and growing.

Want to know more? Contact me at Tim@HoffLeigh.com

Have a profitable week!

Sincerely,

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


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http://hoffleigh.com/OfficeInsider.aspx

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http://hoffleigh.com/IndustrialInsider.aspx

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http://hoffleigh.com/Doc/2.6.09%20Colorado%20Springs%20Business%20Journal%20Ad.pdf