Omaha daily bee., 1910-08-14
TIMELY REAL ESTATE GOSSIP
Practice of Renting Ground Has Be-
come Vogue Here.
LEASES ARE BETTER THAN SALES
building and Loan Association Deal
Brings Ground Leasing TO Notice
4 10th Renters and Lessons
Favor the Expedient.

Sale Of the building Of the Omaha Build
ing and Loan association and transferring
OF the ground lease has called attention to
the steadily growing practice OF renting
ground for a long period Of years. Ground
leases are an old thing in the east. but are
comparatively new in Omaha and the prac-
tlce had not gained anything like a vogue
until the last two or three years.
II Is favored by people who desire a safe
and sure investment. free from risk or
change OF values downward. He who builds
on bis own property to rent It, stands the
risk Of having the building empty part Of
the time. The ground lessor is protected
by the building as security for his rent.
Practically all ground leases contain re-
valuation provisions. The tenant is always
eager for a long lease without rcappraise-
ment. which goes to show the depreciation
of real estate is never taken into considera-
ton in the big business ceuteIs In fact no
case has ever been heard OF where upon
reappralsement the lease is renewed for a
smaller figure. This means of course,
that ground leases are applied only to the
most substantial business property. A
great many contracts now provide that the
initial appraisement shall be the lowest
ever granted
The advantage is, OF course. not all on
one side; otherwise no tenant would ever
appear. Business men sometimes favor
taking ground rents for the reason that
they then do not have TO tie up their work.
ing capital I'm the ground, but can use it in
the active prosecution OF their business
Men who make 10 or 20 or more per cent on
their working capital sometimes prefer to
keep working this money instead of putting
into the real property, where it may in
crease in value, but not so fast as other
wise
The management OF the Hanscom estate
has been the. most notable exponent OF the
ground rent idea in Omaha and none OF
the 100000 of so worth Of downtown realty
owned by the estate is for sale. 1t is all
going into ground rentals.
A $1,000 two-story and basement. brick
building Will be built at once by George &
Co, at 241O-12 Farnam street to re-
pNMe a wooden building just demolished
The building will contain two stores, one
OF which has been leased to the Fiske
Tire and Rubber company. The building
will have forty-foot frontage and will be
1872 feet deep.
Trustees OF the village of Dundee have
advertised for bids for paving the Dodge
street road with brick. from Forty-eighth
to Fortleth street and the contract will
soon be awarded. II is hoped that the
improvement will be completed before snow
flies.
Real estate men have been on the move
the last week or two and a considerable
number have rented new offices. The ID
". Sholes company has followed George
& Co., intos the City National Banl
building and others In the same building
are the Glover Realty company, ]. H
Mithen. l. Sibbernsen, Ernest Sweet, Tate
Erhart company and the Northwestern
Land company and f. ]. Harrington. The
Union Pacific land department is now
located in the Brandeis Theater building
as are the Bemis- Carlherg company, Hin.
terlong g. Adams, William C. Hansen. Con.
rad Young. Niobrara Investment company
+. Fl. Drake, Perrlae, WoIcott & Smith
while the Byron Reed company is a futur'
tenant
George & Co sold two half lots II
Eairacres during the week. The purchaser
Z Wtre Ida c. Borglum and James spenc,
Withdrawals, local representatives of tn
New York Central lines. Each purchase
gave $1,000 for the ground, which front
on Dodge street, west OF the Paxton home