The San Francisco call., 1910-01-08

IN REALTY MARKET
Solid Investments Replace Spec
uIation and Indications for
1910 Are Favorable
By L. P. KERNER,
OF G. Fl. Umbsen q Co.

The first prerequisite for a sound
and stable real estate market is con-
fdence in the situation There can be
no doubt but that improvements IN
the mercantile situation in the down
town district, both retail and whole
sale, and the return and relocation of
old residents, together with new ad-
ditions in population. during the last
few years, constitute important ele-
ments in restoring merited confidence
in the real estate values of San Fran
cisco.
And self-evident proof of this fact
is embodied in the present reduced
purposes, whether advanced on the
construction of mercantile building,
hotel, apartment house or dwelling.
The indications are that the savings
banks and many private parties have
still much money to loan at the pres
ent rate and that in some instances
on inside property specially well To-
Gated lower interest rates apply.
1t is worth while noting that down
town property has been generally i'm
proved in recent months, not for spec
ulative purposes but solely as invest
added the observation that in such
instances where sales were made
these also were invariably as invest
ment propositions calling for imme-
date improvements. either for retail
or wholesale merchants or hotel or
apartment house keepers who have
contracted in advance of building.
CONFIDENCE Is RESTORED
1t takes but a survey of the re-
tail locations to establish the fact that
perfect confidence is thoroughly re-
stored in our main arteries of trade.
Beginning at Sixth street and going
along Market toward the east un-
til we reach Montgomery street it
is a fact that there is no longer a
vacant lot to be had for the purpose
of retail business, except perhaps a
portion of the Blythe block. From
reliable reports this particular holding
is to be improved in the very near
future. In Kearng street. south of
Sutter, there is but one lot still open
for improvement. In Grant avenue in
the same direction. nothing is to be
had. Throughout Stockton street and
also in Powell street present substan-
tial new buildings are or all COM
pleted and soon To be ready for occu-
pancy In the wholesale district south
of Market street on every hand and
also in lower Market street there is
clear evidence Of further improvements.
1t is worth while remarking in this
connections that in-almost every in
stances leases have been made in adj
vance of the erection of these new
buildings now under way toward rapid
completion.
On the edge of the retail district and
also within walking distance of it
many apartment houses are under way
leases having been executed between
landlord and tenant before the foun-
dation stones were laid Many in
quiries have been made of this firm
on the part of prosperous persons for
the purpose of securing them apart
ment houses in the district lying north
of O'Farrell street and east of Van
Ness avenue on the basis of 81 to sS
per room. There is no hesitation in
saying that the demand exceeds the
supply at the present time.
SOLID INVESTMENTS KEYNOTE
All the foregoing facts lead directly
to the conclusion that a spirit of solid
confidence prevails both among owners.
pAOOpCSAiNS lcHdlilS, dllO the large lend
ers of money on mortgages, and last.
but not least, on the part of those
deliberate buyers of property looking
for safe investments. Speculation is
no longer the basis for the purchase of
real estate in San Francisco at this
time. To the contrary, investment is
the keynote which now brings the buv-
er to the front.
In the year 1910 it is the man with
money endeavoring to place a good in
veStment who VIII find his opportunity
in San Francisco. This situation will
also lead the homo builders to appre-
ciate conditions and purchase either in
the Richmond, in the Mission, or south
of the park, whether an empty lot for
imI rovements or a house already built
Much activity may be reasonably ex-
pected in this direction. resulting in
the corresponding increase in land VAL
ue.' throughout all the various resi-
dence sections of the city.
So far as inside properties are con-
cerned, bargains are not easily found.
and the prospective investor rea1izes
this cold fac. 1t results largely from,
the confidence now prevailing among
all classes and in every direction re-
garding the lasting value of San Fran
cisco real estate. The buyers both of
inside and outside lands, will be more
ready than ever TO pay the actual and
norman Nalue Tor holdings instead of
Withholding action in the hope that so
called snaps will present themselves
in the near future. Snaps" may be
regarded as things of the past.
CANAL TO BENEFIT CITY
Another element increasing the con
fdence indicated, is the conclusions now
generally well established that the
opening of the Panama canal will be OF
unbounded benefit to San Francisco in
many ways. In this article it would
be impossible to refer to them in de-
tail. For the present purpose a gen
eral reference thereto should be suf-
ficient.
The nearer we approach to the open
ing of the canal the more difficult it
will. be for purchasers to buy either
inside or outside real estate in San
Francisco at tho present prices. In
vestors and spectators, in fact all
classes desiring to acquire realty hold
ings appreciate this fact and are quietly
investigating the market in the hope
of making desirable purchases before
the real significance and Importance of
the Panama canal opening shall be
plainly apparent to all our owners of
city property.
So far as business for the year 1909
is concerned we are satisfied consider
ing the conditions in general. So far