The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-01-05
CAN'T BUILD ENOUGH
IN NEXT TEN YEARS
Most Intensive Efforts Will
Not Satisfy Demands in
That Period.
RENTS CAN BE KEPT UP
Entering on New Era Of De-
velopment, Says Real
Estate Expert.
RENTS CAN BE KEPT UP
By BRYAN L. kENNELLY.

By BRYAN L. kENNELLY.
We are entering upon a new era In
the development of New York city
which is to have a decided bearing on
the real estate development from this
time forth. The United States must
be reckoned with as one of the great
powers of the world. The Stars and
Stripes have been carried to corners of
the earth which in times past knew
little of them and those splendid fell
lows who on land and sea have made
the name America a symbol for all the
world of liberty and fair dealing have
been quite unconsciously the makers Of
new conditions In world trade.
The whole world hereafter will do
business at our counter, and once again
the American flag will be taken into
every port Of the world by our splendid
merchant marine. Following short
period Of readjustment business will
flow in to our manufacturers and pro-
will be the headquarters at which their
business will be managed. II means
that instead of being a great national
city New York will become a great
international city and it will have to
be built and developed accordingly.
Manufacturers and producers finding
the world opening its trade doors to
them are in the market for larger space.
All this means more people engaged in
producing and distributing American
made goods. and more people necessarily
means more buildings. Older structures
which are no longer suitable for modern
business uses must be made over or
rebuilt. and large areas recently made
available by improved transit facilities
must be improved TO provide housing
and working space for the new millions
that will be added to the population dur
ing the next period Of years
All Of this means greater demand for
real estate and greater demand will
mean higher values.
1t Is necessary to mention b. !efly what
some Ices optimistic experts refer to in
summarizing the outlook "Can rentals
be maintained?" they ask. My answer
is. Certainly they can." and l say
1t in the belief that ten years Of the
most intensive building In New York
city will not produce enough space to
satisfy all OF the demands for the fu-
ture. Again they ask. Where Is the
money coming from with which to carry
on this great development My an
swer is. From the usual sources" For
a while. through the temporary period
of adjustment there may be hesitation
IN the matter Of making mortgage loans
There Is no doubt that when the ooun-
try gets back 10 peace time business
there Will be so much money for invest
ment that real estate mortgages with
their fine security and splendid return
will be sought eagerly.
But more than all this the peSs!nlists
harp continually on the increase in costs
OF municipal and State government as
reflected in the tax rates. believe that
New York city has seen the highest tax
rate on real estate that ii will see dur
ing the next generation, for under the
urging OF our Mayor a new policy OF
taxation in New York is being worked
out under the auspices OF the Mayors
Committee on Taxation. OF which | am
member. which means that hereafter
while real estate shall bear a fair
proportion OF the total cost of govern
ment Il will not be made the scapo-
goat, but other forms OF property are
going TO re compelled TO pay their fair
share. and In proportion az the burden
is taken from real estate and other
forms of wealth are taxed so Will real
estate improve IN aitractivenesS
The committee members hold weekly
meetings and have invited the h.ads of
all real estate ORGANIZATIONS TO confer
with them They hope soon to perfect n
bill to be presented to the State Legis-
lature which will provide other sources
Of revenue 10 the city and greatly les
sen the burden on real estate Gov.
Smith has personally PROMISE me his
hearty cooperation IN this important
matter.
All of this Leads up OF course. 10 the
final question, What is one 10 do in
the real estate market" To those who
have properties which they wish TO turn
into cash / can conscientiously say that
there never was a better time than to-
day TO make arrangements to that end
Well located. good grade property in
any part of the metropolitan zone. prop
erly offered, can be sold at current
values In other words, there Us
demand for well located real estate from
investors
l can say TO those who have cap
ital that the city still is filled with I'M
usual opportunities for safe and profit
able Investments. That condition will
not exist indefinitely, but the best OPP
portunities are TO be had now and they
will not walt long for investors to ac-
cept them A dollars worth OF real
estate to-day will he worth pretty nearly
two dollars before any of us have grown
much older, This was very well dem
onstrated at recent sale of west
Bronx lots, held by ]. Clarence Davies
and myself. at which I sold at auction
all of the lots offered at prices which,
while satisfactory to the owners, en-
abled purchasers 10 realize substantial