The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1910-02-06
BUSINESS DEMAND
INCREASING RENTS
More Ground Floor Space Is
Wanted in Downtown
Section.
SITES BECOME VALUABLE
OLD BUILDINGS ARE NOT PAYING
GOOD INTEREST.

Rents OF stores and offices in the
business district and Of houses in the
residential district have practically
kept pace with the increase In the
values OF realty during the past five
years. In the business district rents
have been increased from 100 to 800 per
cent, while in the residence district %
per cent increase is noted.
Real estate experts advance a num-
Der of reasons for this condition. In
the first place, they say that it is the
logical result of the rapid growth of
the city, and the spondingly in
creased valuation of the business dis
trict property. Another one of the rea-
sons advanced is that the demand for
ground floor space at the present time
far exceeds the supply, and as a result
those who are seeking business lOca-
tons are willing to pay almost any
price for choice locations.
One notable example of the increase
in rent Of ground floor office quarters
is shown by the experience of a we'll
known real estate firm. Five years
ago the quarters could be rented for SIS
a month; now the same quarters are
placed at rental valuation of $3.50
month.
Store rooms on the ground floor that
were bringing $500 a month five years
ago are now in lively demand at 81 600
q month. And even at the latter price
there are not enough to supply the de-
mand. As a result of the great demand
for store rooms of moderate size and
moderate rent buildings OF the smaller
type have been built on State street and
on the streets running east and west of
Main street in the business district.
Want Ground Floors.
That there is a great demand for
ground floor quarters is shown by the
fact that four of the eight store rooms
in the Burlington business block, cor
ner West Temple and Third South
streets, have been rented and the build
ing is not yet completed.
Owners of most of the buildings in
the city figure the rents on the basis of
the cost Of the buildings originally and
the cost Of the upkeep. Even with rents
as high as they are at the present time. /
II Is known that some buildings bring
in less than ( per cent on the valua-
ton. This is due in great measure TO |
the fact that some of the buildings are
not modern, and yet occupy ground /
that is very valuable, in other words, |
if modern buildings occupied some of /
the high-priced Main street sites the /
owners would, of course, get better re
turns on the investment.
In the larger Office buildings, such as
the Newhouse skyscrapers, the rent is
figured by the square foot, taking the
cost as basis by which to reckon how
much shall be charged. The rent of /
these two buildings is about S1.571a per
square foot. While the rent of office /
quarters in these two structures was
thought to be high when they were
ready for occupancy, it is a we'll known
fact that DrOpOrtiOnately smaller re-
turns are had on the investment than
are mad on buildings in the east cost
ng about the same amount of money.
Five Times Increase.
1t is not hard TO understand why
rents in general have gone up during |
The past five years, when some of the
property increases in valuation are
Continued on Page Two.)