The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-10-01
STILL NO SPECULATION
THE CHILLING I'M PROCESS Is
ALL THAT KEEPS THE MARKET
GOING.

Speculation is still absolutely absent
from the Minneapolis real estate mar
ket. The chief buying is still for home
building. Several shrewd men are pick
ing up bargains down town, and out
side money is buying and improving
here. The citizens as a whole remain
asleep. Minneapolis has been accus
toned to the frequent statement that
there exists a surplus Of property above
the demand; that for long time the
city will be filing in it's skeleton out
lines and that until this is done property
is to be drug. They may suddenly
wake to find that the supply and de-
mand ha Is nea aagt e9ualized and that val
This is thesopinion of a real estate
agent who has watched the transfers
| closely for five years, yearly expecting
| a renewed life in the business. He says
that the change is coming surely. He
makes deductions from the following
named improvements under way this
year, which are all part Of the filing
in" process: In many cases old build
cant lots have been chosen for the i'm
provements. The list includes the Walk
er building at Seventh and Hennepin,
the Stimson buildings on the diagonal
corner; the Hall building few doors
up Hennepin; the Mcknight building on
l. In
Stearn building at Fourth and First av-
enue N; the Cream of Wheat building,
one block above; the Barnes stores on
1 First avenue S, near Eighth; the 500
offices on Second avenue S, near Fourth;
the Orpheum on Seventh, near Henne-
pin, and the Unique theater at Sixth
and Hennepin. RI.
This is only partial list Of the filling
done this summer and it sets a pretty
for naYt
Of this kind will take up most of the
= available property in the heart Of the
city. ->
Of the situation the Commercial West
says editorially:
side investors, but as yet have not fully
awakened to the desirability or profit
ableness Of self-ownership. 81, +
It Is always SO with young and grow
, ing communities. Some Of the first set
tiers get rich out of what Henry Geerg'
called the "unearned increment in spit
Of themselves, and others manage to re
tain all or part of their holdings thru {
long period Of land poverty at last t.
reap their Feward. But as a rule it i
outsiders that make the most money GU
: | Of increase in real estate values.
= That is natural enough. for those VIII
build up city do so by their activity IL
' manufacture or trade, and these occu
q pations usually require all their capita
:. SO they have none to spare for invest
ment; and real estate ownership is es
a sentially investment. It is the people @
q older communities who have, as a rule
q the surplus wealth available for f1xe
+ investment. But there comes a tim
f when there is local capital seeking in
vestment, and then it Is too late to ge
: in on the ground floor. However, S.
r Paul and Minneapolis are still young an
a have, a great future before them. It
3. time that local capital were being pu
e into local real estate and real estate i'm
n prOvement. There is enough to swim
II the local market If 1t could be turned
t that direction, and it ought to be-.
q It Is a curious fact that we are likel
r to overlook the opportunities right unde
q our nose while reaching out for those {
IT a distance in time or place.. There al
q few cities in the country where real es
II tate is a better inVes tment than Mir
neapolis. All medium grade bushes
s. and residence structures command rem
q at least equal to those to be obtained
70 Chicago on structures Of similar cos
20 and yet the investment Is much less, be
~ cause the land costs only from one-f1ft
10 to one-half as much. The range Of NJ
y profit in Minneapolis Is from 6 to IL p
u cent, while in Chicago it is from 4 to
10 per cent. No wonder that outside cap
~ %, tai is attracted to twin city improve
~ real estate; but it is wonder that loo
y. capital is content to let such opportul
ut mites largely go by.