The Roanoke times. [volume] (Roanoke, Va.) 1890-1895, 1890-08-24
RENTAL PROFITS.
DOES IT PAY TO BUILD in
ROANOKE?
CERTAIN RETURNS ON BUILDINGS.
a Big Chance for Safe Investments
Thc Attention Of Capitalists Called
to Money -inaking Opporlunities-A
Few Examples.

u" "AVutf-Wuatus opportunities
Few Examples.
The article in Yesterdays TINES
regarding the need of more business
houses in Roanoke attracted goot
deal of attention among the capital
lists here. They have of course known
all along that there were too few bust
ness houses, but this thought hat
never before been given such public
ity by the press.
The TIMES today follows up its in
curry, and has been at some pains Il
gather statistics for the purpose Of
in business houses here will prove
lucrative. That this is so everyone
familiar with the question of rents
in Roanoke is willing to ADMIT, but
outside parties looking for invest
luents of this nature want something
more than opinions. They want facts
and here they are
The average rental paid by the
merchant here is about IL per cent
on the value of the property in open
market. This is the gross income to
be derived from such investments.
but taxes, insurance and other ex-
penses will bring the percentage
down to about s per cent. This is
the expense OF u well known property
owner largely inter ested in real estate
here.
Every business man knows that
this is u good showing Very few
towns in the country, the size of Ro-
anoke, can make as good one. but,
nevertheless, it is not fair showing.
The reason why is not very far to
seek. The majority of the business
men ot the city are lesees of the
property in which they do business.
Their leases We're made some time
ago, most of them at least two years
ago, and since that time the value of
property in Roanoke has almost
doubled itself But the leases. of
course, hold good, and this is Why
the income on the investments in real
estate does not make far better
showing.
To prove that this is so a number
of cases might be cited Here is one
as an illustration. \ few years ago
w n. Wexford leased the property at
40 Jefferson street, in which he had
an office, for 800 month. So rap
idly did this property increase that
in little while Mr. Welford found it
very profitable to suitcase his house,
and this he did, and is now receiving
nearly twice as much in rentals as he
is paying himself This dealing in
leases is quite large business in Ro-
anoke, aud IL good deal of money is
made in this way
1t will thus be seen that the
calculation of the earnings of Roam
oke business property On basis of s
per cent. net gain Is not u true one
Fifteen per cenr. would b nearer the
mark Here again facts may be
called for, and they are ready. The
property at - ~alem avenue,
rented from c. Markley by j F..
Marshal g. Co., at $50 per month,
could not be had now for twice as
much. a lease is held on the prop
erty, however.
Below are given some interesting
statistics regarding the income de
rived from rentals on business prop
erty. They are collected at random
from q number of sources and hun
dred as good Illustrations could be
found.
The old City Hotel building, at the
corner OF Salem avenue and Jefferson
street, sold recently for $30."00 and j.
now bringing in rental Of $4,000 pr
ut is not yet entirely occu
pied" said the reporters informant
''and when it is the income Will be
nearly $4,000 a year, or over 30 per
cent on the purchase money"
The new store of Walker & Black.
well. on Jefferson street, is valued "a
$4,000 and has JUS been leased for
five years at S2,40n per year. This is
IA net interest on the money invested
of 4 per cent.
Just next to this store is that re
Gently sold by William Linn for
$4,000, and now occupied by parties
paying $4,000 year.
The Lunsford building on Railroad
avenue renting for 50 900, valued at
$4,000.
The Moomaw building on Jefferson
street is valued at about SO. 900, and
the rental from the stores and Offices
are $4,000.
The new stone building to he
erected for the Citizens bank, next
Masonic Temple on Campbell street
will cost $4,000 The land cost
$4,000, and the offices already rented
in it before erection. will give the
owners All aggregate income of $4,000.
They will probably be more
The building occupied oy Fidelity
Loan and Trust Company on Salem
avenue, is valued ut $4,000, and
yield a rental of 1920 per annum. II
would hardly be rented under
twice that amount after the lease eX-
pires.
j. a. Page, the grocer. pays 500 a
month for $4,000 building on Sa-
lem avenue
NJ. l. Berlin, of the notion house on
Salem avenue. pays $50 mouth for
a $4,000 piece of property.
"fhls is the way with most of the
business houses of the town said J..
Walter. Boswell in referring to the
Berlin lease.n
Il owned that store and sold it to
William Linn for something over
$4,000 nearly three wears ago. At tie
time believe one great reason why
he bought it was the fact that there
was a lease for six years at $50 a
month. Now that storehouse could
not be rented for les than $3.50 a
month. This is just how large a
number of buildings are held in this
town, and this is also the reason why
a larger income is not derived from
business houses The advance in
property has been phenomenal, and
business houses erected hire now
would yield very large return.