September 12, 2010

Hoff & Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
Leasing, Sales, Management, Buyer Representation
4445 Northpark Drive, Suite 200
Colorado Springs, CO USA 80907
09.12.10

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All Market Average Office Building Sale Price PSF = $99.25 (NO CHANGE from last week)
We are currently tracking 80 office buildings for sale.
This is 752,017 square feet, which represents a total market value of $74,634,118

All Market Average Industrial Building Sale Price PSF = $76.43 (DOWN $10.29 from last week)
We are currently tracking 66 industrial buildings for sale.
This is 838,281 square feet, which represents a total market value of $64,070,106

To view our most recent Colorado Springs Business Journal Ad please click below
http://hoffleigh.com/Doc/8.20.10.pdf


Tim’s Market Report
September 12, 2010

It was 6:00 O’clock already and by the time I looked up and out the window it was still dark outside. And I thought to myself “that can’t be good”. Where did the summer go? And you know it’s a slippery slope - the journey to the cold dark north. I know from first-hand experience. I grew-up in the cold dark north. I know how seductive a Vixen she is. First she lures you into a sense of false security; that the never-ending summer will never end. Ah, but she’s a wily trickster; she’ll ply you with her flirtatious nature; sizzling day-time temperatures followed by amazing, windless, icy-crisp evenings perfect for outdoor camp fires, a feisty merlot and deep sleep; and azure daytime skies so deep that when you stare at them against the black backdrop of the Colorado Rocky Mountains you have to squint or hurt your eyes. But, be warned, she is a trickster, so “enjoy the summer while you can”, because winter is on the way. . . .

Winter is on its way because we are spending ourselves broke. There’s no other way to say it. This year’s Federal deficit will be the 2nd largest in the past 65 years (2nd only to last year’s). And according to the Congressional Budget Office (CBO), we’ll have something like a $1.3 trillion dollar debt (a number followed by 12 zeros) for the foreseeable future. And here’s a revelation; that debt has to be repaid by someone. To continue this lunacy, someone has to invest a boat load of dough into US Treasury bonds every year and the big question is, “Who?” Some of those investors will be foreigners but the rest will be us by way of 1) an increase in taxes; or 2) people saving more and putting that savings into US Bonds (not likely) or 3) monetizing the debt (say inflation out loud 3 times). Choose your poison.

Relative to the size of the economy, this year’s deficit is expected to be at 9.1 percent of GDP which deficit will be exceeded only by last year’s deficit of 9.9 percent of GDP. Having a deficit of 9-10% of GDP is unsustainable. It leads to an ever increasing buildup of more debt on top of more debt that eventually triggers higher interest rates & (say inflation out loud 3 times.)

There’s a theory that says the way to a balanced budget is productivity; that you can “grow yourself out of a financial mess”; that if you produce & sell more, the extra income derived from those sales allows you to pay-down debt. Most bright thinkers say that as a national economy, we have to produce more stuff and sell more stuff to more people outside of our economy. (Pssst. . . Here’s a hint – we have to do the same thing locally!)

We need to brand ourselves and sell ourselves as a city worthy of consideration. We have to recognize that the enemy is not us; it’s the global economy. As a community, we need to work together (that would be the public sector & and the private sector) to present a unified front in the global marketplace. Hey, hey; call me crazy.

I’m just saying. . .

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