Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
August 8, 2010
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 = $102.82 (UP $0.05 from last week)
We are currently tracking 89 office buildings for sale.
This is 822,894 square feet, which represents a total market value of $84,613,436.
All Market Average Industrial Building Sale Price PSF = $89.06 (DOWN $0.93 from last week)
We are currently tracking 76 industrial buildings for sale.
This is 936,019 square feet, which represents a total market value of $82,295,406.
To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/8.6.10%20Colorado%20Springs%20Business%20Journal%20Ad.pdf
Tim’s Market Report
This is the day the Lord has made. . . Let us rejoice and be glad in it!
Mr. Tim’s favorite thanksgiving admonition
And this is the day the Lord hath made baby Maria Grace Trinidad. While she hasn’t made her official appearance, (she probably has a couple more hours to percolate), Holly called RD and me off the golf course and now they’re at the hospital. I’ll always be grateful to the Little Maringo; she saved me from what may have been one of the worst rounds of my life. I had already lost 3 balls on the 1st two holes and it was going down-hill fast! Damn, I lost 1 ball with a tee-shot from a par three. I know - in unison - “That’s pathetic!” RD on the other hand was playing the round of his life. And speaking of life, I hope he knows that the one he knew is over.
And in the meantime, I’ve been studying Dave’s Data. Dave’s our chief statistician. His trend numbers don’t look any better now than they have for the past couple of years. The “office buildings for sale” market continues to be overpriced by nearly $32 per square foot when compared to the Assessor’s value. The “industrial buildings for sale” market is similarly overpriced. In dollars & cents that means we’ll have to clip around $27,000,000 from the price of office buildings and $28,000,000 from the price of industrial buildings to properly align ourselves with Mr. Market.
By zip code, the most overpriced areas are downtown and the old north end, the area along West Colorado Avenue, South 21st Street and interestingly, the areas along Fountain Boulevard and East Pikes Peak Avenue. Conversely, the least overpriced (attention K-Mart shoppers) are 80906 (Broadmoor Valley Road, Quail Lake Loop, Lake Plaza Drive, etc.), 80909 and 80917. The 2nd and 3rd zip codes include the awful real estate on Potter Drive where the highest & best use would be as a target for a wrecking ball; the area around the Citadel Mall, which I consider a looming disaster as the retail trade in that area continues to decline, Rebecca Lane, Carefree Circle, Academy Place and generally, the central Academy corridor, about which Fred Crowley said “without public & private partnership, it will take about 20 years to recover.”
And the CSBJ reported that we currently have a 10 year supply of vacant commercial property. Actually, I reported that statistic months ago and the data for that report should be rightfully attributed to Paul Turner who did the hard work. Turner also said it would take something like 20,000 new jobs to fill the existing available space. These numbers cry-out the very pressing need for continuous economic development and city-wide teamwork.
And, here’s a loose Tim Leigh paraphrase to think about - “Yea shall know the truth and it shall set you free (or totally jack your brain).” Rock Spencer recognized the truth last week. He agreed to Dutch-auction his 6 acres at the corner of Central Academy & North Carefree. We had it listed for $950,000. He agreed to immediately drop his price to the assessor’s valuation and then committed to continuing price reductions of $50,000 every 2 weeks until it sells. His lot will either prove to have no value or someone will determine its mark-to-market value and make a preemptive offer. Then another friend asked if we’d implement the same program for him. We agreed, and on Monday we’re going to start selling 2210 East LaSalle on the same basis. We’re starting at the Assessor’s valuation and dropping the price by $50,000 every 2 weeks . . . ah, the drums are beating and the dancers are dancing to the rhythm. . . Hearing all this, Steve Pope said I reminded him of PT Barnum to which I replied that he reminded me of Leo Tolstoy. . . I’m just saying.
And of course we’re on a continuous hunt for “good” deals with the operative word being “good”. We’ve been hunting for the fabled fountain of youth - income property with decent tenants & upside. Currently, we’re looking to deploy $500,000 in the 1st case and up to $3,000,000 in the 2nd; and in the 2nd case we’d also consider making hard-money conduit loans. In our quest, the kids managed to uncover a hidden gem; an “unlisted” property that they were able to broker to a friend.
The very clean industrial property closed at a 24% discount to the current mark-to-market appraisal. The buyer’s cap rate was something like 13%. And here’s a surprise, the biggest obstacle to closing was lending. The Buyer’s Denver bank, (with another leading market indicator), sent a kid who had never closed a commercial real estate loan. One could presume they fired their competent banker and restocked with a less expensive option. At least he was a Vice President and at least it closed.
When Sellers get real they’ll sell. But, at least for now it seems they’re content to enjoy a little smoke and be at peace with the world.
And then I noticed Sean Paige sent a friendly shot across my bow last week. According to Sean’s blog, “Tim Leigh is back . . . and in the hunt for an at-large City Council seat.” Sean, I’m not back; I never left. I’ve been in the low corner of the offensive zone digging for the puck of truth & clarity. I’ve continued to diligently go about the business of learning and building bridges to the future.
As you know, I’ve spent months learning about our city & systems and at some point I concluded that (at this time) I wasn’t likely the right guy for the Mayor’s chair. That revelation did not diminish my willingness to serve and Sean should applaud that I’m bright, mature & courageous enough to recognize and publicly admit that. Then, after personal reflection, I determined that because of what I’ve learned I could potentially be a valuable community asset; a well-informed and thoughtful at-large council person with some common sense. So, here’s an idea – instead of lobbing volleys, give credit where credit is due.
And by the way, I had not stopped traveling down the narrow path of the lone-wolf. In fact, just last week I was fortunate enough to have been included on a city leader’s tour of NORAD; I was involved in a conversation about “cutback management and the paradox of publicness” and I learned that we have around $8,000,000 in the bank that we can’t spend because we still don’t understand ramifications of the passage of proposition 300. And I fairly guarantee, that based on what I’ve since learned, if the average citizen fully understood what they voted for, they may not have voted the way they did on that issue. As you know, I contend that well informed citizens will normally make the right decision and the right decision is not normally knee jerk! And on that issue, I’m not sure the citizens were as well informed as they could or should have been.
Sean went on to say incorrectly, “Tim says he wants to be a candidate not of the people”. I don’t know where that’s coming from and of course it’s not true. I’ve always been a candidate for everyone from every corner of the city and from every subculture. I’ve said repeatedly that we need to leave our prejudices & predilections at the door and work together for the benefit of the aggregate.
I did say “I’m still committed to the city employees & staff and plan to be their political advocate”. . . (but, please catch this important next part of that same statement) . . . “I’ll expect them to respond in kind with excellence, team work and an attitude of partnership with the private sector.” Where’s the crime? I’d lead and have high expectations. I’ll commit to our folks because I believe that with strong, ethical leadership they’ll rededicate themselves to the high standards and lofty ideals I believe in.
At the board level, some of the executives have used city staff and employees as the Bogeyman. I don’t recall reading any leadership magazines lately which say it’s a good idea for leaders to berate their followers. In fact, our staff & employees are not the Bogeyman and the enemy’s not us! The enemy’s the global marketplace! So now I’m merely stating the obvious – our bureaucracy needs to be encouraged to creatively partner with the private sector in our attempt to create an interesting, diverse and vibrant local economy.
I feel like I’m beating a dead horse and maybe it takes kicking-it when it’s down, but we need to become a city worthy of consideration; a World Class Destination.
We get there by working together.
I’m just saying.
Sincerely,
TJLHoff & Leigh, Inc.
Leasing, Sales, Management, Buyer Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
August 8, 2010
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 = $102.82 (UP $0.05 from last week)
We are currently tracking 89 office buildings for sale.
This is 822,894 square feet, which represents a total market value of $84,613,436.
All Market Average Industrial Building Sale Price PSF = $89.06 (DOWN $0.93 from last week)
We are currently tracking 76 industrial buildings for sale.
This is 936,019 square feet, which represents a total market value of $82,295,406.
To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/8.6.10%20Colorado%20Springs%20Business%20Journal%20Ad.pdf
Tim’s Market Report
This is the day the Lord has made. . . Let us rejoice and be glad in it!
Mr. Tim’s favorite thanksgiving admonition
And this is the day the Lord hath made baby Maria Grace Trinidad. While she hasn’t made her official appearance, (she probably has a couple more hours to percolate), Holly called RD and me off the golf course and now they’re at the hospital. I’ll always be grateful to the Little Maringo; she saved me from what may have been one of the worst rounds of my life. I had already lost 3 balls on the 1st two holes and it was going down-hill fast! Damn, I lost 1 ball with a tee-shot from a par three. I know - in unison - “That’s pathetic!” RD on the other hand was playing the round of his life. And speaking of life, I hope he knows that the one he knew is over.
And in the meantime, I’ve been studying Dave’s Data. Dave’s our chief statistician. His trend numbers don’t look any better now than they have for the past couple of years. The “office buildings for sale” market continues to be overpriced by nearly $32 per square foot when compared to the Assessor’s value. The “industrial buildings for sale” market is similarly overpriced. In dollars & cents that means we’ll have to clip around $27,000,000 from the price of office buildings and $28,000,000 from the price of industrial buildings to properly align ourselves with Mr. Market.
By zip code, the most overpriced areas are downtown and the old north end, the area along West Colorado Avenue, South 21st Street and interestingly, the areas along Fountain Boulevard and East Pikes Peak Avenue. Conversely, the least overpriced (attention K-Mart shoppers) are 80906 (Broadmoor Valley Road, Quail Lake Loop, Lake Plaza Drive, etc.), 80909 and 80917. The 2nd and 3rd zip codes include the awful real estate on Potter Drive where the highest & best use would be as a target for a wrecking ball; the area around the Citadel Mall, which I consider a looming disaster as the retail trade in that area continues to decline, Rebecca Lane, Carefree Circle, Academy Place and generally, the central Academy corridor, about which Fred Crowley said “without public & private partnership, it will take about 20 years to recover.”
And the CSBJ reported that we currently have a 10 year supply of vacant commercial property. Actually, I reported that statistic months ago and the data for that report should be rightfully attributed to Paul Turner who did the hard work. Turner also said it would take something like 20,000 new jobs to fill the existing available space. These numbers cry-out the very pressing need for continuous economic development and city-wide teamwork.
And, here’s a loose Tim Leigh paraphrase to think about - “Yea shall know the truth and it shall set you free (or totally jack your brain).” Rock Spencer recognized the truth last week. He agreed to Dutch-auction his 6 acres at the corner of Central Academy & North Carefree. We had it listed for $950,000. He agreed to immediately drop his price to the assessor’s valuation and then committed to continuing price reductions of $50,000 every 2 weeks until it sells. His lot will either prove to have no value or someone will determine its mark-to-market value and make a preemptive offer. Then another friend asked if we’d implement the same program for him. We agreed, and on Monday we’re going to start selling 2210 East LaSalle on the same basis. We’re starting at the Assessor’s valuation and dropping the price by $50,000 every 2 weeks . . . ah, the drums are beating and the dancers are dancing to the rhythm. . . Hearing all this, Steve Pope said I reminded him of PT Barnum to which I replied that he reminded me of Leo Tolstoy. . . I’m just saying.
And of course we’re on a continuous hunt for “good” deals with the operative word being “good”. We’ve been hunting for the fabled fountain of youth - income property with decent tenants & upside. Currently, we’re looking to deploy $500,000 in the 1st case and up to $3,000,000 in the 2nd; and in the 2nd case we’d also consider making hard-money conduit loans. In our quest, the kids managed to uncover a hidden gem; an “unlisted” property that they were able to broker to a friend.
The very clean industrial property closed at a 24% discount to the current mark-to-market appraisal. The buyer’s cap rate was something like 13%. And here’s a surprise, the biggest obstacle to closing was lending. The Buyer’s Denver bank, (with another leading market indicator), sent a kid who had never closed a commercial real estate loan. One could presume they fired their competent banker and restocked with a less expensive option. At least he was a Vice President and at least it closed.
When Sellers get real they’ll sell. But, at least for now it seems they’re content to enjoy a little smoke and be at peace with the world.
And then I noticed Sean Paige sent a friendly shot across my bow last week. According to Sean’s blog, “Tim Leigh is back . . . and in the hunt for an at-large City Council seat.” Sean, I’m not back; I never left. I’ve been in the low corner of the offensive zone digging for the puck of truth & clarity. I’ve continued to diligently go about the business of learning and building bridges to the future.
As you know, I’ve spent months learning about our city & systems and at some point I concluded that (at this time) I wasn’t likely the right guy for the Mayor’s chair. That revelation did not diminish my willingness to serve and Sean should applaud that I’m bright, mature & courageous enough to recognize and publicly admit that. Then, after personal reflection, I determined that because of what I’ve learned I could potentially be a valuable community asset; a well-informed and thoughtful at-large council person with some common sense. So, here’s an idea – instead of lobbing volleys, give credit where credit is due.
And by the way, I had not stopped traveling down the narrow path of the lone-wolf. In fact, just last week I was fortunate enough to have been included on a city leader’s tour of NORAD; I was involved in a conversation about “cutback management and the paradox of publicness” and I learned that we have around $8,000,000 in the bank that we can’t spend because we still don’t understand ramifications of the passage of proposition 300. And I fairly guarantee, that based on what I’ve since learned, if the average citizen fully understood what they voted for, they may not have voted the way they did on that issue. As you know, I contend that well informed citizens will normally make the right decision and the right decision is not normally knee jerk! And on that issue, I’m not sure the citizens were as well informed as they could or should have been.
Sean went on to say incorrectly, “Tim says he wants to be a candidate not of the people”. I don’t know where that’s coming from and of course it’s not true. I’ve always been a candidate for everyone from every corner of the city and from every subculture. I’ve said repeatedly that we need to leave our prejudices & predilections at the door and work together for the benefit of the aggregate.
I did say “I’m still committed to the city employees & staff and plan to be their political advocate”. . . (but, please catch this important next part of that same statement) . . . “I’ll expect them to respond in kind with excellence, team work and an attitude of partnership with the private sector.” Where’s the crime? I’d lead and have high expectations. I’ll commit to our folks because I believe that with strong, ethical leadership they’ll rededicate themselves to the high standards and lofty ideals I believe in.
At the board level, some of the executives have used city staff and employees as the Bogeyman. I don’t recall reading any leadership magazines lately which say it’s a good idea for leaders to berate their followers. In fact, our staff & employees are not the Bogeyman and the enemy’s not us! The enemy’s the global marketplace! So now I’m merely stating the obvious – our bureaucracy needs to be encouraged to creatively partner with the private sector in our attempt to create an interesting, diverse and vibrant local economy.
I feel like I’m beating a dead horse and maybe it takes kicking-it when it’s down, but we need to become a city worthy of consideration; a World Class Destination.
We get there by working together.
I’m just saying.
Sincerely,
Tim Leigh
719-337-9551
Tim@HoffLeigh.com
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