New-York tribune., 1919-12-28
By Charles c. Nichols Jr.

ttCS-x TCStueNts H. II. AoCfNttc, AtS.
When we entered into the war In
Europe it was matter of real sales
manship to lease a store. There were
many vacancies in the second rate dis
tricts and even few vacancies in the
highest class properties. Stores could be
secured in New York on lower Broad
way, in the Fifth Avenue shopping dis
trct and on upper Broadway. In the
out-of town cities stores could be Sc
cured in the best locations. In one week
in 1915 l secured five of the most valua-
BILE corners in the city of Chicago on
long term leases.
War conditions arose and merchants
became skeptical. The chain store peo-
pie, who, by the way, arc the pioneers
in the rental game, did not think it
wise to take stores. Confidence to
certain extent had been restored. owing
10 the condition of the stock market,
by the spring of 1917. Industries were
humming, even if the United States
was going into the war, and few
merchants decided to expand.
Armistice Marked Business Resump
tiOn
The real expansion started, however.
in November, 1918. when the armisticc
was declared At this time chain store
people throughout the country sent out
men to secure store locations. After a
rush in supply and demand rentals were
raised. The railroad ticket offices, some
of which had not been rented, on lower
Broadway, and one of them on Fifth
Avenue, near Forty second Street, were
quickly disposed of at prices higher
than it was possible to secure a very
short time before.
The congested district on Fifth Ave
nue. between Thirtyfourth and Forty
fifth streets became. if anything, more
congested 1t seemed that the limit had
been reached when inside stores rented
for 81 900 front foot on Fifth Avenue,
but this price has been exceeded. On
Broadway. between Forty second and
Forty ninth streets, as high as 81 800
front foot for inside space has been
obtained The same record has been
reached in Detroit and Chicago, and
Pittsburgh has gone to $1,000 front
foot. The reason for this increase has
been occasioned. in my opinion, by three
conditions: First, the chain stores re-
action after the war; second, the fact
that the merchant is doing a much
larger volume of business, owing to the
high cost of merchandise; third, the de-
probation Of the value Of the dollar.
mans hat store used to sell hat
for SO. on which it made a profit of
approximately, we will say, 10 per
cent net The hat merchant to-day is
selling the same hat for approximately
SIS and is making so cents profit in.
stead of 90 cents. He has lost his pro-
portion in regard to the rental he can
pay for space His number of custom
ers has not increased. but his volume
hoe and bo 10
safe as long as the dollar holds to its
present value.
Store Rentals Will Be Lower
Store properties in New York City
and in every city of over $4,000 popu-
lation in the United States are very
valuable, if not the most valuable of
real estate holdings. When the dollar
does appreciate in value rentals, in my
opinion. for stores will slowly depre-
ciate The reason for this being that
the demand for stores by the chain
stores corporations is large, but as
soon as an appreciation sets in the de-
mand for stores viii become less ac-
tive.
There are fifty nor. competing
lines of chain stores to-day. Each
Of these different lines has several
concerns in the business. They are
continually looking over the ground
in this city and in the outlying cities
for new locations, but soon as rents
60 too high will cease taking stores.
Another development in the store
properties to-day is the fact that the
saloons going out of business will
eliminate some of the night business.
This is not so true in New York as in
smaller cities. 1t is already very no
ticcable in the loop of Chicago. Be
D,l
and having so many theaters, will keep
the pace on Broadway, but not to as
great an extent as it did before pro-
kibition went into effect. This will
tend to reduce rentals rather than in
crease them in intense shopping dis
tricts
Community Districts Have Value
Another thing that has been rapidly
developing is the community dis
trict, which is becoming better and
better for night business. This is oc-
oasioncd not only by the closing Of the
saloons and dance halls in the down
town districts where liquor was sol
but by the fact that very handsome
moving picture houses have been
built in these outlying districts.
me rentals on 1Slst Street and St.
Nicholas Avenue, 10th Street and
broadway and such outlying districts
have advanced to where they are al
most one-half the rental on lower
broadway In New York and in other
cities this has been occasioned bv
the Tact that as the transit facilities
become more crowded the men as we'll
as the women prefer to avoid the
crush in the streetcars.
Great Trading Spots
Until tNe war it was considered q
very good investment to own Store