The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-03-28
HOLD LONG END NOW
Real Estate Men Say Good Things
of the Past Years De-
-, velopments.
Rentals Are Better and Give Prop.
erty Sound Footing as an
Investment.

Real estate men unite IN saying that the
most notable improvements in the bust
ness during the past year have been the
steady and marked increase in rental
values and the creation Of manufacturing
and wholesale houses following the devel-
opment of trackage facilities in different
parts of the city, The average real es-
tate dealer finds ample cause for gratiflca-
ton in the big upward jump of rentals
After getting the "short end' Of the rent
al proposition for years in a city which
has been admittedly not only holding it's
own we'll established place in the list of
hustling American municipalities, but
which has been forging steadily ahead of
many Of its rivals, they say the business
is now being conducted on a somewhat
more equitable basis. Even the less OPP
timistic dealers who could not see daylight
when the sun Of returning prosperity was
brightly shining have been finally forced
to admit that Minneapolis has at last re-
covered from the body blows of panicky
times and that the demand for real estate
OF all descriptions had commenced greatly
to exceed the supply. -
This realization has been reflected in
the big residential building boom Of the
past year., and in the renlodeling and the
erecting Of buildings for jobbing and
manufacturing purpose.
The following optimistic interviews are
a good index to the state Of mind Of the
hustling real estate men Of the city, who
believe that the great record Of last year
was but the humble beginning of an era
Of real estate activity unparalleled since
the days of inflated prices and get-rich-
quick deals: ..--r. b, . ..s. ~.Yy~s.
Improvement Everywhere.
Lester B. Elwood, of the Corser Invest
rents, as we'll as in residence property
a close observer to note improvement on
every hand, not only III real estate values
in Minneapolis, but in everything that
pertains to real estate. The most marked
and potent Of these signs is the steady in
crease in rental values. For the past two
years this has been most noticeable IN
central business property, followed during
the past year by a like advance in office
rents, as well as In residence property
rentals. A few instances on Nicollet ave-
nue., which might be noted, show how
| marked this advance Is. In one case
lease, which is soon to expire, has been
| renewed at $4,000 per annum, where the
| former rental was $500. In other cases
renewals are now being made on the basis
Of $3.50 and $500 per month, where the for
mer rental was $3.50 per month. he.
1T goes without saying that values OF
| realty, as we'll as values Of all other kinds
| of property, depend almost entirely on its
income producing power. A per cent
railroad stock worth par, almost 1n1me-
| diately doubles in value when it Is brought
| to an per cent basis. This should be
and is. for that matter, not less true In
real estate values It almost invariably
| follows that raise in rentals Of from so
| to Is per cent more than doubles the net
| income of the investment, in that In real
estate, the fixed charges remain about the
same, and doubling of gross rentals may
treble the net income formerly received.
"Other marked evidences Of real es-
| tate improvements during the past year
are shown in the character and number OF
buildings erected for actual use and the
utilization Of trackage property, like the
| 500 trackage on Washington avenue n,
| by our large agricultural implement
| houses; notably the Dere-Webber and
Dean buildings, and buildings Of the same
character along the Milwaukee tracks on
Third street s. These buildings, mind
you, built FOR actual use, not speculation,
| Indicate the healthy conditions of the real
estate business generally" 80 =
Capital Flowing This Way. & -
Fred G. James: ''The most striking
! feature in Minneapolis realty circles dur
| ing the last year has undoubtedly been
the big increase in rentals. That this in
crease was justified has been concluslvely
demonstrated by tho readiness of the pub
| lie to meet the higher prices Of improved
! conditions. BY offering fair return on
| the investment the present condition Of
| the market has impressed upon men Of
means seeking profitable investments the
good business sense of putting their
| money into real estate which is now show
ing its capacity for paying handsome div
idends. AS natural result, we have,
during the past year and the erection OF
! flowing this way and a constantly grow
| ing demand on the part of our people tc
buy homes, if not for themselves, as a
pure business venture.
! 1.-THE big demand for trackage property
| durin gthe past year and the erection Of
| mammoth wholesale houses with admirable
| shipping facilities is in itself significant
of the growing greatness of Minneapolis
as distributing center. That this fac
has been generally recognized outside Of
Minneapolis is shown by the inquiries
! constantly being received here as to suit.
able locations for manufacturing and othel
enterprises. Appreciable as the showing O.
the last year has been, look for much
greater revival In realty during the yea
before us. The most important addition!
to our wholesale houses have been on thu
North Side but the growth In this direc
tion is not confined to any one district
as witness the development whereve
trackage facilities are right There haN
been substantial improvements along tn
Milwaukee trackaGe and In both North
east and Southeast Minneapolis.
Business Section Growth.
Edward l.. McGrory, with the b. G
Walton company: ~ The Improvement o
down town property has interested M
particularly during the past year. Will