The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-04-18
. GLUT OF SUBSCRIBERS.
o MANI FOE THE DEMAND.

More than io1 Largo once Buiidinss Boiow
Houston street and Giant Structures Planned
or Going Up to Competo with Them for
Tenants-Countioss Omces Advertised for
Rent-Tho Fall OF rices-Prospect or the
Bu.iness-oid Profits ana View Uncertainties.
THE SUN from time TO time has direo ed at
tention to tho enormous amounts Of money
tpent in this city in recent years oa sky
,craping office buildings and to the changes
which these buildings ~ere making both In the
,ly line of the city and In its streets. While
thes. additions we're making to the business
commodation of New York many shrowd
tnanciers have boon wondering what the end
was to DO and when these enormous structures
would glut the market. That time has mr.
rived, AID THE Sun now sounds 6 warning to
those who contemplate adding TO tho supply.
Real estate men have realized for soma time
Tint such a state of things was possibly ap-
preaching, but IL was not until n lot of such big
buildings as the new e5-story st. Paul building
on the old Herald site at Ann street and Broad
way. the seventeen-story Boiling Green build
Ing, the Bank of Commerce building. and
other. came into the market TO secure tenants
for the coming year that It was demonstrated
that the market was glutted with fine cficos,
and that \ halt would DO necessary ut least for
q time. That matters are likely to be worse
before they are better seems also true. for be-
sides causes which have acted in o general
way to restrict the natural growth OF demand
for Offices. there Is likely soon to be even q
larger number of frst-class competitors for
tenants. as there are yet q number of ne~ sky
ecrapers under contract to be built and a num-
her Ike the immenso 27-story Park row build
ing. which arc under way.
cz,,n ~ ,hA 1xp h,t1ltn1a y A1ltnr III In
q manner satisfactory TO their owners and
come have secured tenants In a remarkably
short time. "a has the new Bank of Commerce
building. which is sid to have engaged ten
ants wit In the last sixty days TO all but nil It;
bnt Il lie the sources fron which most of the
ten ants are coming TO this and other specially
attractive buildings that prove that the busi-
ness Il for the time In an unwholesome >onoi-
ton and likely to result al most ruinously to tho
incomes of many owners Of old-fashio1e d
buildings. The strong and patent fact 10 that
the newest sky.scrapers are drawing a great
part of their tenants from other modern build
ings which ar almost as attractive. and many
Ct then perhaps moro expensive In conssruc-
tim. Ind that there I. now a sharp and I'M
healthy competition among the owners of sky
scrapers for tenants.
There are signs OF "Ofices to let'' on the
fronts OF downtown building to-day where such
signs hare not been exhibited before for years,
and advertiseme- Is of Offices for 5000 n year
onward in hui;dinGs whore the owners have not
hal to advertis" in such a way for years. and
where no office could ever before be hired for
Anything like 90 little monev. Few Of the agents
who make n speciality of handling Office build
ing property will admit that they Are making
concessions in their rental prices in conse-
ouence OF the fierce combetition. I is per-
haps true that thew are still holding out for the
rentals which they have long been getting for
medium priced portions of their big buildings,
but none denies the keen efforts to get tenants.
Most of them admit that fancy prices. such
as IS or Sc n year for each square foot Of floor
space are q thing OF the past except in q few
splendIdly situated buildinEs-
How long the strain can be resisted and
rooms to kept unoccupied rather than at re-
duced prices is merely q matter of conjecture.
Fortunately the greater part OF the owners Of
the big buildings are corporations. that arc
ampIy able to carry and protect their holdings.
or milIionaires. For plre speculation In these
buildings the present Is a bad time; this has
been sho wn by the unfortunate history OF the
big ~ Indicate building at the southwest corner
of Liberty and Nassau streets. This Is said to be
the only purely speculative sKy-scraper scheme
that has been brought to a head since the "raze
for quitting up the big buildings began to grow
chronic nSe or NIX years ago. Inc nropcTty
has Just been sold for a second time. and
the purchase price OF 81. s25. 600 is said bv
real estate men 70 represent Just about q
fair valuation o tho proncrtg after wipine out.
as this sale and one held previously did: the
third and fourth mortgages. Tho men Of this
erty declare that he present situation Ii
only a Temporary one. and that the big Office
They do not deny. Lowever. that the prospects
for the owners Of !old-style buildings, even in
heretofore been veri.Able gold mines. are
gloomy. The situation, these men say. is that
from a cheek In The natural growth OF bust
ness than from the nutting M OF too many
For the time being. l will admit said one
Of these men n day or two ago. that there arc
100 many Office buildings IN the market for ten
building very largely from the other build
lhgs In oar neigh borhood where for one rea-
quite 60 good as ours. For example. we have
taken tenants worth S25. moo a year from the
Older building next door to us. That building
~. windows OF all the build ings in New York
city, and ours can equal 1t in this r.spsct only
improved service. and some other features Let.
.I nan theirs. and we get their tenants. From
drawn tenants who pss SO & 90 "a a year 70 .0 That That
nearly as g good S,&G in . a. modern Ssr as as Gu !, a. and md
earoS q good many Of our other Incoming ten
snts. They are CO ming from buildings which
uiner out little from ours.
4 am sorry 10 draw tenants from such build
ings. altho gh. CT course. 1 want ali The good
ones ! can get. for II those buildings do not
M up again within a reasonable time from au-
otler KIND OF source. they must force on us o
Sompelitloh In prices which. in the end. would
pc disastrous: With tho revival or general
business | believe there will come relief, but
IN ~ inc present th,re are no signr Of this.
N times past when ] have been renting the
o.nceS IN such a new building IL has not been
Gtali for men t come around say.
m on l nave been getting along With 1000
nave LOCO Now they are much more apt to
10y that tEey will try TO get along with 500
Ise,. You n ight with reason ask whore we
naturally expect to get tenants TO I'LL ND the
constantly growing number OF office build
inss. IN ordinary times tho number OF office
occupants grows constant y. Tho new ten
sals come mostly from out-of- town con-
vTsns winch either do some business in New
Mb@t and want to do more. or from concerns
S !, nave been keeping representatives here
w hirinR only desk room. Then there are
S9neerns which OCCUPY lofts in inconyenient
psces and have had their Offices beside their
aooos. such concerns find often that q lignt.
Son'enient office in a handsome building. with
;Sst q line OF samples Mt hand. Sill enable
shea U do more business in comfort than
'hey could do under the other circumstances