May 3, 2009

Tim Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing; Sales; Management; Buyer or Tenant Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO 80907
May 3, 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 = $113.08 (UP from $112.58 last week.)
We are currently tracking 115 office buildings for sale.
This is 1,206,787 square feet, which represents a total market value of $136,459,900.

All Market Average Industrial Building Sale Price PSF = $76.07 (DOWN from $76.55 last week.)
We are currently tracking 101 industrial buildings for sale.
This is 1,455,810 square feet, which represents a total market value of $110,741,606.

Tim’s Market Notes

We’ve been tracking the prices of small office and industrial buildings since last April. After a year, the data shows that both office & industrial building prices have appreciated.

Offices building prices have gone-up $17.02 psf ($111.71 - $128.73).
Industrial buildings have gone-up $16.06 psf ($68.10 - $84.16).
You can see the entire list by attachment above.

I did not contract the swine flu last week; whew! I was worried.

I did talk to several building owners who continue to express fear & uncertainty about the veracity of the current financial markets run-up. I don’t know what’s caused the stock market to rise because most businesses continue to report that they’ve not seen any real increase in sales. And, until there are increasing sales there can’t be real increases in stock prices; unless they are merely speculative in nature only, and subject to a Ponzi scheme mentality. Increasing real estate values can be attributed to the thought that hard-asset prices are relatively low (and therefore a bargain – and they are), especially when weighed against pending inflationary pressure caused by current fiscal policy.

Want an example of NO Sales? One of our friends, who own a Case Implements dealership, reported that his entire company (that would be Case, Inc.) sold only 3 units in April – “For the entire western region!” (That’s an area from Texas; north to North Dakota and west to the Pacific Ocean). Ugh! A normal month would produce about 2,000 sales; he told me to think about Los Angeles and then California. Case did not sell 1 unit in the entire state. He told me he’s never seen anything like that in 30 years of business. How does that affect his real estate value? You got it. Another friend who recognizes that markets go up and down told me to reduce the asking price for her downtown retail condo for lease so she can work-her-way through the low-spot. We’ve now listed it for $6.00 NNN (that’s $12 psf gross!). Our goal’s to be so low that we wring a customer from the market. So far - no takers; How does that affect her real estate value? You got it again. It’s another indication that until sales increase, rents will stay low and attendant values will remain low.

The true value of any real estate is measured by “how much milk the cow produces”. If milk production is low, the value is low. There’s no other basis upon which to make a real measure of value, except of course the Ponzi scheme idea where you hope somebody will come-along and pay more than you paid. Of course for owner-user property, you can throw all scientific valuation out the window. Those properties will continue to bid themselves to the upper limits of the market and many are sold like a house is sold, for utility value and aesthetic value.

Have a good week.

If you’d like to talk to me – give my cell a buzz – 719-337-9551 or drop me an email at Tim@HoffLeigh.com


To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/May1.pdf

Sincerely,

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


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

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