The Birmingham age-herald., 1920-05-20

In this way the tenant secures by first and complete payment of the entire amount which five or stx-years' lease represents a. leasehold upon which other payment will not be required until the end of the term. The belief is strong that a proposition of this kind will be readily accepted.
 On the other hand the owners of the buildings who have obtained long-term ground leases from the New York Central will have in hand when the tenantry of their building is completed, sufficient sum to protect them for at least live years Their estimate is that in this way they will be insured against any conSi- tions which may arise after the leass terminates. and especially against any condition which may be developed after the present building construction has passed it's peak.
 The syndicate which is constructing what is to be very large office building
 on Fifth avenue not far from the Wal dorf Hotel estimates that the cost of l labor and equipment and other high 1 charges will make necessary an invest , ment of $5,000,000, perhaps more, in order 1 to complete the building. Whether this includes the ground rent or not is not
 known. They also estimate that after 1 five years, when the demand for offices I III New I OIk IS flOL dS great dS tllc sup ] ply, and when high prices for building
 material and high wages are reduced this 1 building might sell at an enforced sale ! for possibly not more than S2,O00000. Of course these figures are In the rough. | They may be too large or they may be
 too small, but they Illustrate the point taken by the syndicate. Therefore if the
 tenants of the new buildings pay when
 they make the leases an aggregate sum | tN t1,n or which five
 years rental will reach, then the syndi-
 cate will have made enough to pfotect itself, no matter how great depreciation
 may be- Already it is the experience or those who are investing millions in off, | fee and department building that there
 is tenantry ready and willing to sign
 leases and to make first payment of a
 sum equivalent to the total amount due | for five years.
 This in itself illustrates the unparalleled | demand for offices and the great demand for apartments in New York. But for this | demand the high prices of building ma
 terial and of everything that enters Into ! construction would prevent investment o1 capital in undertaking of this kind.
 Sometimes it has happened that those
 who have been in possession of leases | which still run for considerable term | of years, but which were signed some
 years ago when rentals were lower and before the unheard of demand for offices | began have been able to sell their leases | for amounts large enough to put them m
 comfortable circumstances. In one case sufficiently large to enable the tenant te retire from business.
 WHAT IT FORECASTS
 Every one who has given attention to this almost paradoxical development of enormous investment of capital at this | time in business and apartment struc' ] ture in New York Is of the opinion that if reflects confidence in the future pros- perity of the country and probably the | maintaining in part, at least, of New | York as the great world money power, al l though there is no doubt that New Ycrs must hereafter share that prestige with London.