One growing company in Colorado Springs has just increased its commercial warehouse and distribution footprint by more than one-third.
Arrow Moving and Storage has leased a 26,791-square-foot building at 2853 Janitell Road. The company already owns a 39,600-square-foot office and warehouse building purchased during 1996 at 2885 Janitell Road, president and owner David Ottoes said.
The mover recently diversified, adding more logistics and distribution customers which, in turn, have created the need for more space.
“The new building is already half-filled. We’re handling a lot of new products — hotel remodels, Qwest materials and general distribution,” Ottoes said.
Olive Real Estate Group broker Charley Conrad represented the landlord, GBG-CS Frontier LLC, and broker Dick Rackley of Kent Properties represented the tenant.
“Despite challenging economic times, there are still select companies thriving, growing and expanding. Our challenge, in the commercial brokerage business, is to stay positive and concentrate our relationship-building and marketing efforts on (successful) companies,” he said.
Corporate Office Properties Trust, a national real estate investment trust with more than 1 million square feet of commercial holdings so far in Colorado Springs, appears to be doing something right.
The company’s 2009 year end report, issued last week, attests to the strength of its investment and property management portfolio, which includes 11 buildings in the Pikes Peak region.
Among its annual report highlights released last week, COPT chairman and CEO Rand Griffin said not only did the company achieve a 73 percent lease renewal rate on expiring leases — no small feat in the current economy — but it also averaged a better-than-91-percent occupancy rate in its 249 wholly owned office properties amounting to more than 19 million square feet.
The company’s financials showed a 45-percent debt-to-total market capitalization ratio. In addition, 75 percent of total debt was subject to fixed rather than riskier adjustable interest rates, Griffin said.
Perhaps the best news of all was that COPT’s shareholders earned a return of 25 percent for 2009, capping a 10-year return rate of 693 percent — especially because the company serves as the Cresterra Business Park Interquest and Patriot Park master developer with 5 million square feet of future development planned.
Effective this month, R.D. and Holly Trinidad, brokers with Hoff & Leigh Real Estate, will assume 75-percent ownership in the company.
Founder Tim Leigh will be 100 percent-divested as owner of the company, a move designed to remove any perceived conflict of interest as he begins his campaign for mayor.
The 20-year-old independent real estate company expanded its presence during 2009, opening a franchise office in Dayton, Ohio. Leigh said the new owners might also open a Denver office later this year.
“I had planned to step away eventually, but my mayoral candidacy pushed this on to a faster track. It’s part of a family succession plan — I feel good about it,” he said.
Becky Hurley covers real estate for the Colorado Springs Business Journal.