The Minneapolis journal., 1903-03-03
NO new BUILDING
Conditions Must Improve Before
Additional Office Buildings Will
Be Built Here.
Rental Agents Say Rents Are Yet
Not Up to "Good Times
:s Basis.

Until rents are higher Minneapolis will
not have another large. office. building
said a manager this morning. The need
OF another building for high class tenants
has already been shown in, II h e Jour
n !, but inquiry among, men who have
the money to build and among men who
have managed office buildings shows that
the prospect is not good.g mot an office
building in the city has made a cent of
profit the past year. said the same man
ager. ,.<-. -, .-...r b, g.
The owners Of the skyscrapers have con-
tended this year against the additional
cost Of fuel and consumers are agreed that
fuel will be high for another year. lad
"No long-headed business man will put
an office building until he can get 3 or 4
per cent on his money.cas a return" was
another explanation of the situation.
situation Peculiar.
'"rhe office building situation in Mime
apolis- is peculiar In former days when
Temple Court and Lumber Exchange, then
smaller building than now, were the only
real office structures in the city, the Ium
ber Exchange burned, and about the same
time the Guaranty Loan building and the
New York Life building were completed.
The supply was then greater than the de-
mand, so that after the Lumber Exchange
was rebuilt there really not enough tenants
in the town to fill the three. The man.
ayers of the two new buildings had, of
course, done much soliciting and obtained
the Lumber Exchanges: tenants at-avery
moderate rates to the tenants. When the
new Lumber Exchange, which is a kin
dred interest building; was. completed,
having; been greatly enlarged, to secure re-
turn. of it's old businessrs concessions We're
made and rates. were somewhat demOral-
lied owing to the inequality between
supply and demand. ..a. 49, *: g.
after a period Of prosperity when
rates reached something of a. normal
standard, came the financial storm and
the reefing of sails. Time-trted Gus
toners of the building said Now we can't
continue to pay the rent you ask. We
don't do the business to justify 1T and
must seek quarters in a, cheaper building.
'"That. was the time. when all agents
were hustling- TO rent the Offices some
how, so that favorable rates were made
with the understanding that in time they
| would be advanced. It. has been pretty
! hard to increase these rents, and even
after the advances that have been made
! the total income, has not got back tc
| that >of the good days -. - - 8.
Another Advance Necessary. .
"Another increase of from Is to 20 pei
cent must still be made.
"The office building men are not taking
advantage Of the scarcity Of offices te
shove up the rents. The reason the rate
have not gone up before Is because wher
we have gilt edge customers who pay theil
rents on the dot we hate to say to then
that they must stand an increase. Ane
| the argument they Use against it is in
variably: Why, don't we pay our rem
regularly?' -. '..s. -
''The situation is just this We, have
/ to get more returns owing: to the increase
in the cost of fuel and labor, and unit
the standing buildings make larger re
turns, Minneapolis will not have anothe
large office building" - =.
Internal conditions are aiding in tn
office congestion. Firms which occup.
small quarters are taking in adjoinin,
rooms, and the greatest, difficulties th
| agents have to contend with to-day ar
to satisfy the man who wants the addi
tional room, and to pacify the presen
| tena n y. .-... .