Colorado Springs Real Estate Briefs: March 21, 2008

Before purchasing a home, it's importance to choose "the right neighborhood" from communities within the same metropolitan area, at least based on research published in the Wall Street Journal.

Reporter Jeff Opdyke reported in a March 13 story, "Gauging Value in Real Estate as Prices Slide," that there are often noticeable price differences between homes in different ZIP codes and neighborhoods. The discrepancies exist in cities throughout the nation.

In the Denver/Boulder/Greeley market, for example, the median sales price for a home in Broomfield was $225,000, while the Aurora median home price was $215,000. Findings included the fact that specific pockets, neighborhoods, school districts and employment centers can greatly influence which ZIP codes perform better than others in a residential market.

To find out how median sales prices vary locally, the CSBJ contacted Eddie Hurt, a broker with ERA Shields who ran the local numbers for eight local Multiple Listing Service residential areas.

On a year-over-year basis, for example, Black Forest saw a median homes sales price drop of 2.9 percent to $308,998 and the southeast Colorado Springs median sales price declined 3.9 percent to $147,000.

Other local areas and ZIP codes fared better, showing increases.

Southwest Colorado Springs, for example, saw a 12.3 percent increase in the median sales price to $278,750, up almost $30,000 between 2006 and 2007. Also in the positive column were the Tri- Lakes area, where the median price climbed 2.5 percent to $410,000; central, with prices up 1.5 percent to $164,000; and Briargate, where the median home sales price increased 1.1 percent to $300,000.

Manitou Springs' median housing price remained flat for the year at $280,000, as did homes near Powers Boulevard, where prices nudged downward 0.5 percent to $214,000.

Medical/dental leasing news

A second tenant has leased 3,500 square feet of office space in the Sullivan Communities' Kissing Camels Office Park III at 2955 Professional Place.

Action Potential Physical Therapy joins Pikes Peak Physical Medicine, which has already moved into the building.

The tenant was represented by Ted Link and Brian Norton of Cascade Commercial Group. The landlord was represented by Mary Frances Cowan and Russell Stroud of Grubb & Ellis Quantum Commercial Group.

Rona's Acupuncture Clinic has leased about 1,265 square feet of space at 6665 Delmonico Drive.

The landlord, Rockrimmon Medical-Dental Center, was represented by Link and Norton. The tenant was represented by Karen Evans of The Tenant Rep.

Foothills Medical Clinic has leased about 1,500 square feet in the Parkmoor Medical/Dental Office Building at 3100 N. Academy Blvd.

Cascade Commercial Group represented Dr. Patricia Rand. Michael Roslin and Bob Nolette of Front Range Commercial represented the landlord, The Logan Group LLC.

Next 10 years look good for landlords

The multifamily property market must significantly increase supply to meet demand in the years ahead, so says the National Multi Housing Council.

In a report released last week, the Washington D.C.-based trade group projects the number of for-rent households will increase by 4 million during the next 10 years, with half renting apartments at properties with five or more units.

In reviewing 2007 data, the group's researchers said the number of renters at professionally managed apartments increased by its largest annual amount since 2000. Demand is being fueled mainly by a reduction in home ownership levels caused by the housing slump that began last year.

As usual, the Pikes Peak region reflects national trends to a point, but B.J. Hybl, president of the Griffis Blessing Property Services Group, sees some differences as well.

"In the long view, I'd agree. Portfolio-wide, our occupancies register about 90 percent today which is strong, but the next 36 months are tough to predict in our market," he said. "The troop movements are an unknown -- and they create and ebb and flow, especially in certain neighborhoods."

Hybl also said that it isn't just distressed homeowners moving into apartments.

"We're seeing more new renters coming from the baby boomers and echo boomers in their 20s who choose renting over owning for different reasons than a typical tenant," he said. "They want the freedom to come and go with fewer strings attached."

Local architect gets Wyoming project

Eastern Wyoming College in Torrington has awarded studioTEN of Colorado Springs an architectural design services contract for $12,000.

Mark Harris, the company's founder, will begin conceptual design work this week on campus, including redesigning entry areas to classrooms and the college's Fine Arts buildings, modifications to the library, student services offices and cafeteria, and new classroom space at EWC's Douglas campus.

Becky Hurley covers real estate for the Colorado Springs Business Journal.

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