Colorado Springs Real Estate Briefs: November 5, 2004

Colorado Springs Business Journal, Nov 5, 2004 by Stephanie Cline

Freddie Mac is a stock-holder owned corporation created to provide continuous funding to mortgage lenders. The corporation was established by Congress in 1970. According to Freddie Mac, one in six homebuyers in the United States receives assistance from the corporation.

Classic Mortgage COO and president receive awards

The Colorado Mortgage Lenders Association awarded Roger Cavender, Classic Mortgage president, and Gene Mills, Classic Mortgage chief operating officer, the Entrepreneur of the Year award. Mills and Cavender have each served as first officer of the Southern Colorado chapter of the association.

Classic Mortgage is often ranked as the No. 1 new home lender in Colorado Springs and the No. 1 purchase money lender of government loans. Classic also is frequently ranked among the top three total purchase money lenders in Colorado Springs.

Third quarter market highlights

Within the office commercial real estate market the current vacancy rate is 9.7 percent in Colorado Springs according to Bach Commercial Brokerage. The real vacancy rate is 10.5 percent when the more than 195,000 square feet of sublease space are added. As of October, 67 office properties had been sold for an average of $101.40 per square foot. The average for 2003 stood at $88.63 per square foot.

The industrial market has a vacancy rate of 11.4 percent. The cost of rent within the industrial sector has increased by 1.2 percent during the first three quarters of 2004.

Thirty-nine industrial buildings were sold in Colorado Springs through September at an average of $47.37 per square foot.

National home sales and economic growth

According to the Meyers Housing Market Key Indicator alert dated October 29, new and existing home sales were up by more than three percent as compared to sales in the previous month.

The economy grew at a rate of 3.7 percent during the third quarter according to the key indicator alert. This rate was below the rate expected by analysts, but stronger than the 3.3 percent rate of the second quarter. Growth in the fourth quarter is expected to increase.

In September, new home sales saw an increase of 3.5 percent nationwide. New home sales one year ago were seven percent lower than today's rate.