New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-05-20
RENTALS OF OFFICES.
DEMAND FOR SPACE EQUALS SUPPLY
AND PRICES SOAR SKYWARD.
RUPTION, AGAIN CONTINUES TO THE
SATISFACTION OF INVESTORS
IN OFFICE BUILDINGS
IN OFFICE BUILDINGS.

|
| IN OFFICE BUILDINGS.
| There a time far distant when the build
| ing of large office structures much in excess
| of the actual demand that owners were beginning
| to question the wisdom of their investments in
| that direction Although many of the men who
| had embark upon the enterprise of putting up
| large office buildings had done only after a
careful and systematic study of all phases of the
question. they found after their projects had taken
a tangible FORM that results were by means up
| to expectations, but from a financial standpoint
| were long way from satisfactory. Men whose
| judgment ordinarily sound and who had rea
| soned that the demand for office accommodations
| was large enough to Justify great investments in
those huge piles of stone and steel in return
not greenbacks gold and bonds. but thin air, by no
| means satisfying lucrative or comforting. Where
| they had looked for the active hum of commerce
| they found empty offices, with the sign ITO Let
conspicuously displayed.
1t seems hardly surprising, therefore, that they
| became more or less discouraged. Their friends,
| even less sanguine, shook their heads wisely, and.
after the manner of friends" deplored such rash
| investment and rubbed it in in way that was
unpleasant. say the least. Several of the men
who were pioneers in the big office building move
ment in this city tell of dscouragements that
would have disheartened men less determined and
| less sure of the correctness of their judgment.
Even with the feeling of ultimate success before
Them there times within the last two
three years when such optimism these operators
tirely in the face of encouragement and apparent
lack of appreciation.
Up short time ago one heard again and again
of the so-called failures in office building. 1t
common talk in real estate circles that those who
had made speciality of that particular kind OF
enterprise had o'erleaped themselves Operators
who pretended to be shrewder went about
''patting themselves the back and telling them
selves how wise they were not to burn their fingers
as had some others But in the matter of big office
building it looks very much If the who
laughs last will again the old adage and have
much the best of the laughing. The same operators
who year ago stood pointing the finger of
scorn at the tall buildings now inclined to
emulate the example of the fox in the fable. for
to-day the office building of the modern type is
something more than an experiment of idealists-
1t is a fact, and a successful one at that AS an
investment 1t promises better even in the near
future. and the men who led the way
graduating themselves the indication that their
projects beginning to bring returns such as
justify the investments that have been made IN
them.
The demand for office accommodations is a large
and constantly increasing one. and those who for
a time had begun to doubt the wisdom of their
efforts to supply such demand are now realizing
that they right after all. That fact should
have been evident from the first. The fault
not in the original idea and the men who foresaw
a demand for increased office accommodation in
this city following out natural and perfectly
intelligent want. But with all their foresight they
could not foresee general depression in business
which would make temporary failure of all COM
mercial plans conceived in spirit Of optimism.
No realized that depression was hand
which would choke progress and cut down enter
prise that had just begun to develop. The desire
to supply office accommodations outcome
of expansion in business. and the fact that
pansion for a time interrupted could not
foreseen.
In consideration of office renting it is natural
to begin with the 'skyscraper," since that repre-
sents the culmlnaton of the model type of office
building, for igh
originally financial problem. pure and simple.
Owners of property in the business sections found
that they could rent space than their two
three and four story buildings contained. A be-
ginning was made six and eight story buildings
but gradually as the business interests of the city
multiplied the downtown section grew more con-
gested, and 1t became apparent that some other
solution of the problem be found.
Individual lines of business had been established in
certain sections. and new in similar lines were
to deal in stocks and bonds. had TO be in or near
Wail-st;; LIberty-st; and its neghborhood became
real estate brokers. agents and operators began to
ees. but the negnborhood though gradually broad-
measr retained otb 5s dT1ncye character in large
SeR 9td followed: Men had to ind accommo-
tic ;pI! lines of business. take the chances Of
failure or large losses This point is dwelt upon
Jet Of rents: Maiden Lane for Instance is today
parayey high but even WITH better accomo9
lions elsewhere the wholesale jeweiier remains in
Maiden Lane. because he knows that in the minds
his trade and it is distinct interest him to be
ppeT1 ne to ot dbe gets rs @ as result of his
who come visit other houses are apt TO dron in
and look over his goods. because he is located con
Eenientyy, and he thus often adds names to
chants do not realize that they could buy jewelry
So it was with business increasing in the down.
town section that the problem gradually assumed
The land vas largely built upon. Brokers had to
Wye I9 M radd nut but Wai.st could not expand
couId not be increased. Hemmed in all sides
space the only refuge was the air When The sly
and eight story buildings longer answered the
wondering what they could do next mechanicaI
ingenuity came to aid The elevator was the first
beginnings 1t gave great promise either to the
men me who were studying the office problem Doubt
sonably doubted whether their clients would rise
wil ine 20 H. And If they did find tenants
ers continue to come and justify their faith in the
eSSperment? But the problem had be met, and
bi prices charged for offices the early days of
value Of the illustrate conclusveiy that
sae once building movement had it's origin in
1869 the manager rented suite Of ofces FOR $50
= Slo ~, me next year the tenant agreed pay
owner himself realizing the full value of bie
eMperllment agreed quite readily. He was subse-
suite, and when the tenants lease expired the
same offices We're let for 5000 on one year lease
hto-day, even with increased accommodations in /
the way OF more modern buildings and notwith-
standing the fact that they are in no wav SUPERIOR
What has been said of the tendency toward con-
rent is Il edu nv to- statement that the
are found The price of the land is a CORRESPONDING
Ito pu another element is the style and char
men who put up office buildings spend so much
none money on ornament and decoration But operators
Know that appearance goes long way with the av-
erage tenant. and they figure returns com |