.
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
June 28, 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 = $112.11 (DOWN from $112.23 last week.)
We are currently tracking 143 office buildings for sale.
This is 1,452,392 square feet, which represents a total market value of $162,882,448.
All Market Average Industrial Building Sale Price PSF = $83.41 (DOWN from $83.65 last week.)
We are currently tracking 130 industrial buildings for sale.
This is 1,663,437 square feet, which represents a total market value of $138,743,956.
To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/6-26-09.pdf
Buildings I like
2760 North Academy Boulevard: This is the lowest-priced property for sale in the city and its very clean. The sale price is the same cost of the original development cost in 1982.
2500 North Circle Drive: This is very clean owner/user building with potential to be a 4 unit rental with strong cash flow.
500 West Bijou: This is an owner user property near downtown and it’s a sleeper with its great access to I-25 and downtown and abundant parking.
2812 West Colorado Avenue: This is an owner user building on the West Side; there are very few clean office buildings on the West side for sale – ever.
I like several others. Call me for my private list. My private line is: 719-3327-9551 or shoot me an e-mail: Tim@HoffLeigh.com
Planned closings
3788 Interpark Drive: 2,800 square foot warehouse for $66 per square foot
2870 Janitell Road: 30,324 square foot warehouse for $70 per square foot.
627 East Uintah Street: 4,714 square foot office for $106 per square foot
Tim’s Market Notes
Without regard to political correctness, I have been feeling like Martin Luther King – Free at last! I’ve done everything social convention says I should; I’ve stayed married; raised great kids; gotten them through college; weddings and resettlement near the family home. And just when I thought I was going to have a free-pass, my kids dropped the bomb - “Guess what dad - you’re going to be a Grandfather!” on me. Let’s talk about stunned and feeling old. I’m only 53. I’m too young. I’m not old enough to be a Grandfather.
Fortunately, I was told, I’m not really going to be a Grandfather, I’m going to be a Granimal. You know, the Grandfather of animals! Shannon & Holly each delivered healthy, bouncing baby Corgi puppies over the past month. Congratulations & gifts should be sent. We now have puppy breath, silky fur, Buddha tummies and puppy paws. In the midst of financial chaos and real estate hardship, it’s good to remember simpler things in life. Sadie’s cool, calm, collected & leashed; and the Hurley-Monster says, “Paws UP!”
I received Scott Anderson’s report this week. Scott’s a Senior Economist with Wells Fargo Bank. He writes, “My grandfather taught me to play golf when I was barely a teenager and could hardly swing my clubs. Still I tried to hit the ball with all my might, and the ball would just skip down the fairway at about 100 yards a pop. It was frustratingly slow, and it took me at least two shots to equal one of his; yet his advice to me, that kept me playing and striving was, “Just keep moving the ball!” Sure enough, before I knew it, I was on the green. I suspect many business owners, workers and consumers will be feeling the same way about the economic recovery.” And that’s what I’m seeing; nobody’s hitting home runs, but they’re feeling a new optimism. The businesses I encounter on a daily basis are “hanging-in and hitting the ball over and over and over”, hoping for better days.
Anderson went on to say, “Not every economic and financial data point has been a homerun, but the economy has racked-up enough singles & doubles in the 1st 2 quarters of the year to tip the economic scales in favor of a resumption of growth in the near-term. All indications are the recover will start out slowly in the 3rd quarter, but there is little doubt now that it will come, at least temporarily. This week’s consumer spending and personal income report for May is the most solid evidence yet that the fiscal stimulus package passed earlier this year is having a positive impact. The income tax cuts are surfacing in the data as a spike in personal disposable income (income left over after taxes). Personal disposable income rose at a 1.3% pace in April and at a 1.6% pace in May, this at a time when wage growth was virtually flat.
The bad news for today’s economy is the bulk of the income gain is falling straight into a rise in the personal savings rate and not into consumer spending. The personal savings rate hit a 15 year high in May, rising to 6.9%. However, I see these trends as mainly positive for the economic outlook. The personal savings rate was bound to rise anyway as consumers repaired their balance sheets and if the stimulus package wasn’t passed, the impact on nominal consumer spending would have been far more damaging to growth.” Here’s his key statement, “The quicker the savings rate rises, the faster consumers will be able to pay-down their debts and repair their cash-flow problems and the sooner the economic growth will be able to improve to more normal levels.”
Anderson went on to predict the bottom in housing demand and says we may be moving in the right direction. I hope so. A large part of my personal portfolio is single family residences and I’ve been crowing about their virtues, but few have listened. They’re stable, easy to finance & manage, and I can show 20% or higher annual returns. Unfortunately, with my method of investing, they require skin-in-the-game & under-leverage.
And as I rolled around town last week, I became engaged in a conversation with a very well know real estate developer. I mention it because, as we talked about the local financial and political situation, he professed total discouragement. Heck, I thought, “If he, and guys like him are discouraged, we’re in trouble.” The one thing we can’t be is discouraged.
I told him about my recent trip to Austin, TX with the Chamber of Commerce. He already knew about Vision 20/20; 6035; Quality of Life, and Innovation Southern Colorado. I told about groups who are working together to develop a vision & plan to market Colorado Springs “as a region” that would encompass the entire southern Colorado area; marketing the virtues of Pikes Peak; Pueblo and its River Walk & Reservoir; the Arkansas River and its kayaking & rafting; Manitou and its status as the 2nd coolest small town in America; our region’s human resources; schools; etc. I told him there are groups working together to make Colorado Springs’ a vibrant (clean, safe, fun) place where business & people want to come. Then I suggested, If we fix ourselves, we won’t have to work so hard to recruit new businesses. They’ll naturally gravitate to a “clean, safe, fun-place, where taxes are low and government intrusion is nominal and actually helpful.”
We discussed a vision where government was totally transparent; where it invited inclusion, (perhaps via the internet or by utilizing technology that is readily available, but not currently deployed); where the public & private sectors actually worked together; where elected officials served in Jeffersonian style – at personal sacrifice for the greater good; and where one’s highest calling wasn’t obtaining a job with the city or county (“and I get benefits, too!”) and where elected officials didn’t rotate from chair-to-chair, but rotate out of the system after 1 term.
He lamented “Our enemy’s us. We say we want to live at the Ritz; but we only pay the Motel 8 rate.” He went on, “Maybe its worse than that – actually, most people only want to pay the Motel 6 rate.” We laughed and damn, I thought, he’s right.
I asked my friend if he thought it would be possible to “De-Bruce” the city. We agreed that it would be possible if the electorate actually understood the issues and trusted their leaders. (Read what you’d like into that.) If, for example, there was a compelling reason for new taxes, and if the reason was truly justified, we’d get it. If, for example, we needed water for parks & pools (and we do), we’d figure a way to cut the number of streets we plow in March (its all going to melt in 2 days, anyway). Hey, there’s a novel idea. And, we agreed therein lays the beauty of transparency. People would understand. I told him of one of my favorite sayings, “Reasonably bright people, given sufficient data will ultimately reach the same conclusion.”
As we wagged-on, we talked about how awesome it’d be to have a Mayor who didn’t micro-manage meetings and who possessed a Grande Vision and Broad Brush; someone who could see what Colorado Springs could be and who had the ability to articulate the vision, coalesce disparate groups & turn that power into action. Paws UP to that! Imagine the Mayor as chief salesman for the city. Can I get a witness? Paws UP!
OK, this is a real estate column, so back to business. I know you can read the attached report that says there are 144 office buildings in Colorado Springs for sale. The attachment reports their average asking price is $111.74; the assessor says it should be $73.78. I thought it’d be interesting to know how many of those buildings are advertised “for sale” for less than the assessor’s valuation. When questioned, Matt, our very bright intern from UCCS told me - 29.
My theory is, if a building’s being sold for less than the tax-man says its worth, there’s a deal lurking in the dark corner of market knowledge. I have the full list. If you’d like a copy, send me an email: Tim@HoffLeigh.com. The most deeply discounted property is for sale at $138.90 per square foot less than the assessor’s valuation. I wonder if the Seller can spell TAX-APPEAL. Can I get a witness please? Paws UP to that!
Last week, my friend called the local real estate market “a slow moving train-wreck-in-derailment where the combatants have not realized the full scope of the crash”. I continue to stand by description. Leasing activity’s still slow as cold syrup. Lease rates & sale prices have not bottomed. I continue to be asked to evaluate property, to determine its “real-value.” I took 2 new such assignments last week and I met with a lender who thinks she may “continue dancing-with-the-one-who-brung-her” as opposed to a new partner. Of course the current dancer has a broken ankle and can’t keep time.
Nationally, Pundits say “5 more years of hard labor”. Several have asked me “What crime did we commit to receive this punishment?” A friend told me he did everything the system said he should do; he worked; he saved; and generally behaved (well, most of the time). But the government changed the rules and put him out of the game.
Locally; I see good news. I see a dim light at the end of the tunnel and I don’t think it’s a locomotive screaming head-long at us. I think it’s actually light at the end of the tunnel. Want great advice? Save your money & reduce your debt. The economy’s going to bounce like a W; smart money will pay-down debt & build cash reserves, because when it dips, (and I guarantee it will), smart money will be buying.
Have a great week!
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
Hoff & Leigh, Inc.
Leasing; Sales; Management; Buyer or Tenant Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO 80907
June 28, 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 = $112.11 (DOWN from $112.23 last week.)
We are currently tracking 143 office buildings for sale.
This is 1,452,392 square feet, which represents a total market value of $162,882,448.
All Market Average Industrial Building Sale Price PSF = $83.41 (DOWN from $83.65 last week.)
We are currently tracking 130 industrial buildings for sale.
This is 1,663,437 square feet, which represents a total market value of $138,743,956.
To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/6-26-09.pdf
Buildings I like
2760 North Academy Boulevard: This is the lowest-priced property for sale in the city and its very clean. The sale price is the same cost of the original development cost in 1982.
2500 North Circle Drive: This is very clean owner/user building with potential to be a 4 unit rental with strong cash flow.
500 West Bijou: This is an owner user property near downtown and it’s a sleeper with its great access to I-25 and downtown and abundant parking.
2812 West Colorado Avenue: This is an owner user building on the West Side; there are very few clean office buildings on the West side for sale – ever.
I like several others. Call me for my private list. My private line is: 719-3327-9551 or shoot me an e-mail: Tim@HoffLeigh.com
Planned closings
3788 Interpark Drive: 2,800 square foot warehouse for $66 per square foot
2870 Janitell Road: 30,324 square foot warehouse for $70 per square foot.
627 East Uintah Street: 4,714 square foot office for $106 per square foot
Tim’s Market Notes
Without regard to political correctness, I have been feeling like Martin Luther King – Free at last! I’ve done everything social convention says I should; I’ve stayed married; raised great kids; gotten them through college; weddings and resettlement near the family home. And just when I thought I was going to have a free-pass, my kids dropped the bomb - “Guess what dad - you’re going to be a Grandfather!” on me. Let’s talk about stunned and feeling old. I’m only 53. I’m too young. I’m not old enough to be a Grandfather.
Fortunately, I was told, I’m not really going to be a Grandfather, I’m going to be a Granimal. You know, the Grandfather of animals! Shannon & Holly each delivered healthy, bouncing baby Corgi puppies over the past month. Congratulations & gifts should be sent. We now have puppy breath, silky fur, Buddha tummies and puppy paws. In the midst of financial chaos and real estate hardship, it’s good to remember simpler things in life. Sadie’s cool, calm, collected & leashed; and the Hurley-Monster says, “Paws UP!”
I received Scott Anderson’s report this week. Scott’s a Senior Economist with Wells Fargo Bank. He writes, “My grandfather taught me to play golf when I was barely a teenager and could hardly swing my clubs. Still I tried to hit the ball with all my might, and the ball would just skip down the fairway at about 100 yards a pop. It was frustratingly slow, and it took me at least two shots to equal one of his; yet his advice to me, that kept me playing and striving was, “Just keep moving the ball!” Sure enough, before I knew it, I was on the green. I suspect many business owners, workers and consumers will be feeling the same way about the economic recovery.” And that’s what I’m seeing; nobody’s hitting home runs, but they’re feeling a new optimism. The businesses I encounter on a daily basis are “hanging-in and hitting the ball over and over and over”, hoping for better days.
Anderson went on to say, “Not every economic and financial data point has been a homerun, but the economy has racked-up enough singles & doubles in the 1st 2 quarters of the year to tip the economic scales in favor of a resumption of growth in the near-term. All indications are the recover will start out slowly in the 3rd quarter, but there is little doubt now that it will come, at least temporarily. This week’s consumer spending and personal income report for May is the most solid evidence yet that the fiscal stimulus package passed earlier this year is having a positive impact. The income tax cuts are surfacing in the data as a spike in personal disposable income (income left over after taxes). Personal disposable income rose at a 1.3% pace in April and at a 1.6% pace in May, this at a time when wage growth was virtually flat.
The bad news for today’s economy is the bulk of the income gain is falling straight into a rise in the personal savings rate and not into consumer spending. The personal savings rate hit a 15 year high in May, rising to 6.9%. However, I see these trends as mainly positive for the economic outlook. The personal savings rate was bound to rise anyway as consumers repaired their balance sheets and if the stimulus package wasn’t passed, the impact on nominal consumer spending would have been far more damaging to growth.” Here’s his key statement, “The quicker the savings rate rises, the faster consumers will be able to pay-down their debts and repair their cash-flow problems and the sooner the economic growth will be able to improve to more normal levels.”
Anderson went on to predict the bottom in housing demand and says we may be moving in the right direction. I hope so. A large part of my personal portfolio is single family residences and I’ve been crowing about their virtues, but few have listened. They’re stable, easy to finance & manage, and I can show 20% or higher annual returns. Unfortunately, with my method of investing, they require skin-in-the-game & under-leverage.
And as I rolled around town last week, I became engaged in a conversation with a very well know real estate developer. I mention it because, as we talked about the local financial and political situation, he professed total discouragement. Heck, I thought, “If he, and guys like him are discouraged, we’re in trouble.” The one thing we can’t be is discouraged.
I told him about my recent trip to Austin, TX with the Chamber of Commerce. He already knew about Vision 20/20; 6035; Quality of Life, and Innovation Southern Colorado. I told about groups who are working together to develop a vision & plan to market Colorado Springs “as a region” that would encompass the entire southern Colorado area; marketing the virtues of Pikes Peak; Pueblo and its River Walk & Reservoir; the Arkansas River and its kayaking & rafting; Manitou and its status as the 2nd coolest small town in America; our region’s human resources; schools; etc. I told him there are groups working together to make Colorado Springs’ a vibrant (clean, safe, fun) place where business & people want to come. Then I suggested, If we fix ourselves, we won’t have to work so hard to recruit new businesses. They’ll naturally gravitate to a “clean, safe, fun-place, where taxes are low and government intrusion is nominal and actually helpful.”
We discussed a vision where government was totally transparent; where it invited inclusion, (perhaps via the internet or by utilizing technology that is readily available, but not currently deployed); where the public & private sectors actually worked together; where elected officials served in Jeffersonian style – at personal sacrifice for the greater good; and where one’s highest calling wasn’t obtaining a job with the city or county (“and I get benefits, too!”) and where elected officials didn’t rotate from chair-to-chair, but rotate out of the system after 1 term.
He lamented “Our enemy’s us. We say we want to live at the Ritz; but we only pay the Motel 8 rate.” He went on, “Maybe its worse than that – actually, most people only want to pay the Motel 6 rate.” We laughed and damn, I thought, he’s right.
I asked my friend if he thought it would be possible to “De-Bruce” the city. We agreed that it would be possible if the electorate actually understood the issues and trusted their leaders. (Read what you’d like into that.) If, for example, there was a compelling reason for new taxes, and if the reason was truly justified, we’d get it. If, for example, we needed water for parks & pools (and we do), we’d figure a way to cut the number of streets we plow in March (its all going to melt in 2 days, anyway). Hey, there’s a novel idea. And, we agreed therein lays the beauty of transparency. People would understand. I told him of one of my favorite sayings, “Reasonably bright people, given sufficient data will ultimately reach the same conclusion.”
As we wagged-on, we talked about how awesome it’d be to have a Mayor who didn’t micro-manage meetings and who possessed a Grande Vision and Broad Brush; someone who could see what Colorado Springs could be and who had the ability to articulate the vision, coalesce disparate groups & turn that power into action. Paws UP to that! Imagine the Mayor as chief salesman for the city. Can I get a witness? Paws UP!
OK, this is a real estate column, so back to business. I know you can read the attached report that says there are 144 office buildings in Colorado Springs for sale. The attachment reports their average asking price is $111.74; the assessor says it should be $73.78. I thought it’d be interesting to know how many of those buildings are advertised “for sale” for less than the assessor’s valuation. When questioned, Matt, our very bright intern from UCCS told me - 29.
My theory is, if a building’s being sold for less than the tax-man says its worth, there’s a deal lurking in the dark corner of market knowledge. I have the full list. If you’d like a copy, send me an email: Tim@HoffLeigh.com. The most deeply discounted property is for sale at $138.90 per square foot less than the assessor’s valuation. I wonder if the Seller can spell TAX-APPEAL. Can I get a witness please? Paws UP to that!
Last week, my friend called the local real estate market “a slow moving train-wreck-in-derailment where the combatants have not realized the full scope of the crash”. I continue to stand by description. Leasing activity’s still slow as cold syrup. Lease rates & sale prices have not bottomed. I continue to be asked to evaluate property, to determine its “real-value.” I took 2 new such assignments last week and I met with a lender who thinks she may “continue dancing-with-the-one-who-brung-her” as opposed to a new partner. Of course the current dancer has a broken ankle and can’t keep time.
Nationally, Pundits say “5 more years of hard labor”. Several have asked me “What crime did we commit to receive this punishment?” A friend told me he did everything the system said he should do; he worked; he saved; and generally behaved (well, most of the time). But the government changed the rules and put him out of the game.
Locally; I see good news. I see a dim light at the end of the tunnel and I don’t think it’s a locomotive screaming head-long at us. I think it’s actually light at the end of the tunnel. Want great advice? Save your money & reduce your debt. The economy’s going to bounce like a W; smart money will pay-down debt & build cash reserves, because when it dips, (and I guarantee it will), smart money will be buying.
Have a great week!
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
