The sun., 1908-12-27
THB REAL ESTATE HARRIET
RENTAL, VALUES IN MANHAT.
TAN DURING fS0s. >
BusIness Premlses and Elevator Apart.
ments Have Sustained Sat small Less
sT Income, but Flats and Tenemeats
Have Lest Heavily biRce the PaAie.

sT Income, bat Rfats and Tenesaeats
Have Lest Heavily siRce the PaAie.
In order 10 convey Q just, Idea OF the
courss Of the real estate market during
the present year 1t Ii necessary to Keep
In mind what In meant by the term value
as used In connection with real property
Real estate has two kinds Of value rental
value and capital or selling value. The
former is OF course moro stable than the
latter. Rents, except in the tenement
distriote. are usually protected by con-
tracts extending over a period ot any
where from q year to'a generation. i"
Practically all business realty 10 pro-
teoted By contract rents covering g term
OF years. Realty OF thia kind was there
fore not affected by the industrial de-
preston OF tho current twelvemonth'
except where old leases expired. where
new buildings we're opened for tenancy
or where lessees went into bankruptcy.
The number OF business failures In
New York city during the first eleven
months Of the year. as compiled py brdd'
street's. was 2.O7Q, compared with l.sh
during the same period Of 1907. tne
monthly number had decreased notably
by the end Of November. but the failure
statistics are by no means as yet down
to a normal level Meanwhile II is evil
dent that business suspensions are likely
to be Of diminishing importance as an
influence bearing on rents.
The amount OF new office and loft space
opened for tenancy last spring was larger
than it has been in years. Az few now
business concerns were being organized
the buildings just completed were forced
to make q very strong bid Tor tenants
OF older structures whose leases we're
expiring. As q rule the owner OF new
buildings. having had no income from
their capital for year or more whi.e
the buildings were under construction,
felt obliged to make the utmost possible
concessions in the way Of rent TO obtain
tenants. sSr
Naturally the competition was felt
most keenly in the case Of buildings situ-
ated in less advantageous locations
The new downtown Office buildings in
Broadway were fairly well filled At com
paratively small reductions in rents.
while some structures Oh Broadway were
forced to make unprecedented conces-
sions. The same rule he'd good with
loft buildings further uptown except
that the preferred thoroughfare there
was Fifth avenue. As result Of this cut
ting down Of rents the business tenantry
in Broadway, Fifth avenue ant Thirty
fourth street is perhaps larger now than
IL was a year ago. whine that elsewhere
is smaller. Hence the few business
buildings that have been unable to dis,
charge their mortgage Obligations and
that nave thus been set under the hammer
have virtually al been located away
from the preferred trade centre,
The business premises that have been
affected by the rent reduction OF this
wear have owing to the prevalence OF
long term leases formed very small
percentage of the total supply OF business
housing. Few mercantile structures have
been sold in pursuance Of mortgRgefore-
closures, for the earning power OF such
realty has on the whole been 30 well
assured that whenever owners nave had
TO realize buyers have been ready TO take
it by private contract Mt q price above
the amount OF the debt.
One class of business realty that did not
share in the rent cutting was warehouse
property. During the early part Of the
year the demand for warehouse room was
greater than the supply. Large quanti-
ties OF goods for which there was no imme-
diate market were stored by manufac-
turers and dealers after the panio. and
warehouse rents advanced, with the re-
suit that quite a number Of storage build
ings were put under construction In the
spring, particularly on the lower West
With respect to residence property
leases are for short terms. usually for one
year only. However. apartment house
rents were but slightly affected by the in
dustrial depression. During the, Preced-
had gone in chiefly for the production
OF tenements and fats The supply Of
apartments with elevator service was
oomnaratively small, while the demand
was suddenly increased through the cir
cumstance that many families who had
been renting private dwellings sought to
economize by moving into apar tuaents.
the we'll TO do element Of the population
this year has redoundsd 70 the beneft
OF the West Side. including Morningside
Heights and Washington Heights. This
part Of the town has been the scene Of q
growing building movement since last
spring, when the mortgage loan situation
began to improve. During tho present
housing on the upper West Side and to
low cost OF construction, capital has
rome freely into the production OF both
hreproof and non-flreproof elevator
apartments there. tf
Rents for both apartments and private
dwellings are lower on the West Side
than in the fashionable East Side resi-
dence quarter. There has been q marked
shifting Of population this year from the
higher priced East Side 10 the lower
priced West Side. Some of the fashion
able East Side apartment houses that
had waiting lists before the panic now
have vacant apartments. Sharp re-
ductions In dwelling house rents on the
East Side were the rule this fall. In spite
OF which many private. houses were loft
tenantless at the close Of tho. renting
season. Meanwhile West Side rents
both for dwellings and apartments have
been maintained, without showing any
general tendency to advance. However,
| West Side premiser are now moro fully
ouently have q greater rental value.
! It the same time the multiplication OF
apartments on Washington Heights is
already threatening to, draw tenants from
the average grade OF apartments In the
older West Side proper.
The sort Of property that has depreci-
ated most extensively In rental value Ia
fat and tenement housing. or this hous-
ing there was q decided oversupply when
the industrial depression set in and tine
surplus was greatly emphesized by the
heavy emigration OF foreign laborers last
spring. No statistics are available to
show whether the population Of the city
has increased or decreased during the
wear. The marriage statistics, which, how
ever, are not accurate. indicate a pro-