The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-07-06
REAL ESTATE MARKET
1T Is QUIET NOW, But NOTHING
ELSE Is TO BE EXPECTED.
A Real-Estate Dealer Discusses the
~tuatf Now Obtaining I'm
Indianapolis.

The real-estate market seems TO be gen.
orally dormant, and a number of real-estate
men say that there is but little inquiry.
regard this as merely temporary and
by no means an unhealthy condition. June.
July and August are invariably dull months,
as those with means 20 invest are usually
thinking OF hunting. fishing and outings at
the summer resorts. One real-estate man
said that there were plenty of buyers but
no sellers. the reason being that whenever
an owner is approached and is asked TO put
a price he Immediately is seized with the
idea OF an exalted valuation. This is par
ticularly true in semi-downtown districts,
because a number OF people have erected
flats and they have proven very profitable
investments and the holders of the remain
ing available sites place a value on them
commensurate with fat rentals, which are
exorbitant considering the character of
many of the existing structures.
You know he continued, II believe
that Washington-street land values be-
tween Pennsylvania and Illinois streets
have about reached the maximum. My
reasons for this are the facts that the
greatest tributary supplying the business
districts with purchasers is from the north
OdoNy dIQ Il OCllCNC Oll a NlCAC Will w
a large department store built up on Massa-
chusetts avenue which will attract this ter
ritory. The precedence once being estab-
lished. others will follow. as in the case of
the John Shilito Company in Cincinnati,
which is a parallel instance. There is an
other Illustration of this idea an the large
department store at the corner of Missouri
and Washington streets. They have taken
advantage OF the low ground valuations in
that section, which means cheap rent, and
they are better able TO evade competition.
This store derives it's patronage from the
western section of the city and the west
ern and northwestern rural territory.
Indianapolis has lower land valuation
than almost any city of the same popula-
ton. But population does not alone nix
valuation: ii is the acreage covered by a
city. To demonstrate this: Cleveland, a
town OF something over 300. 600 inhabitants,
has LOO acres in its business district
Pittsburg is about the same population,
with 500 acres in it's business district. The
latter has at least three times higher land
valuation than the former owing, of course
10 congested conditions. Indianapolis has
ike Cleveland. about LOO acres in the
business district. It's land valuation Is
about one-half less, owing 20 the popula'
ton.
Il was in Pittsburg a short time ago
and it is certainly the center Of the indus
trial boom. 1t is a river town, and has
years ago, spread over all the available
level territory, which accounts for the con
gested condition. Space in office building
rents for 81 per square foot annually. Com
pare this with Indianapolis, where spac
for first-class office buildings rents from
So cents to 81 per square foot. On the prin
cipal streets of Pittsburg the rentals ar
so high as to be absolutely prohibitory 4
small concerns. The town is now laid OF
about like our own city, TO the extent o
having alternating streets and alleys. A
alley, like our Pearl, Court or Wabasl
stores. saloons, cheap restaurants an
small business concerns generally. Durinl
the noon hour these little thoroughfares ar
thronged with clerks and working people.
financial transition. People are gettin
away from the idea of seeking persons
securities. The facts are, the small in
weston can't get mortgages any more; the
are all taken by the large trust and in
surance companies. and there is nothin
left for the man with 2,oD or 5000 SUI
plus but 10 buy stocks. Personally, l be
leve il is just as well. as there are as man
bad mortgages as there are bad stock!
and IL people use the same care and discrt
ton in selecting them they can't go amis
Considering the present tendency Il
wards Capitalization In all lines, l believ
the future building and real-estate inves
ments will be held by stock cOmpanie
because a large building can be maintaine
at relatively less expense than smallt
ones. It takes no more ground and roc
for twelve stories than for one, to say noti
ing of the reduction in cost of general az
ministration, fuel. taxes, insurance an
other fixed charges. individuals arour
INDIANAPOLIS who have the courage or cap
tai TO erect large building plants are re
and far etween, and the advantages
manifest that they will eventually be dor
by aggregating small capital through IL
1 medium of stock COmpanieS.'