New-York tribune., 1921-10-30
Fifty Acres Of Downtown
Space on Market for Rent
Committee of Building Managers Report 1000, 900
Square Feet of Office and Lofts Empty South of
Chambers Street; Situation in Hands of Tenants

There are more than fifty acres Of
Offices and lofts unoccupied and wait
ing tenants south of Chambers Street.
Not since before the war has there
been SO much emptiness in the lower
end of New York. The great demand
that filled up every nook and corner,
no matter how undesirable it may have
been, has vanished like vapor in win
ter weather. Business conditions have
contracted the need for quarters. Old
firms have retreated back into the space
occupied before the business that came
with the war forced them to acquire
larger working space to meet the in
creased activities. New concerns are
not forming in numbers sufficient to
take up the space released or the new
premises rushed to completion in the
last two years in answer to the de-
mands of business for room to carry on.
Louis B. Daley, of the Equitable
Building Corporation and chairman of
the committe on rental of the Building
Managers Association of New York, is
of the opinion that if business condi-
tions do not improve the amount of
space for rent in New York will be in
creased.
No Profiteering
In his report on renting conditions in
this city to the Managers Association
Mr.. Daley said, as chairman of the
renting committee, that conditions have
changed.
"For the last two or three years the
average building manager has had little
difficulty in keeping his space rented"
said Mr.. Daley. 'Some of us, due to
long term leases, made in time when
there was an overplus of space, have
not been able to get the gross income
to which we are entitled. The ex-
traordinary demand for space and the
insistent tenant who must have space
at any price have brought down upon
profiteering, though we we'll know that
in our business It is most difficult to
get the alleged profits which would
warrant the charges.
"As Colonel Strong has said, it is
hard to be called a 'profteer,' but
harder to be so labeled and not to get
the profits.
"ln a recent hearing before the
Lockwood committee the president of
corporation owning an office building
submitted schedule of every lease
made from the date of the opening of
the building. The schedule showed in
detail each successive lease on the of
Aces or floors, and, being for six years,
includes renewals of five-year leases
made prior to January 10, 1921. What
was developed after the committees
auditors had carefully scrutinized
these schedules? That a lease had
been made for an Office at something
in excess of So square foot This
fact and this fact alone, SO far as these
SIX schedules were concerned, was put
into evidence and the official was pre-
vented from explaining that the lease
in question covered an area equivalent
to one-half of unit, or less than $50
square feet; that it was made to one
of the most intimate personal friends
of the largest individual stockholder,
and finally that in consideration of a
concession in rent to the former tenant
the new tenant had agreed to include
lord in his rental on the premises in
question.
What Is Prevailing Rent?
Now, your committee on rental con-
ditions, no doubt, is expected to report
as to whether the rate of upward of $S
per square foot, which it was developed
some Office buildings were obtaining, is
now obtainable. And if not, what is
the prevailing rate, and does such rate
apply to buildings in the financial dis
trict, the uptown district or to that
district in the neighborhood of Colum-
bus Circle which is sometimes mislead-
lngly advertised as part of the Grand
Central district?
Your committee we'll knows there is
no possible way to differentiate be.
tween the proper rate, expressed ir
square foot terms, among buildings il
the same general locality, because ot
difference in character, age and ap
pointments, and whether a Broadway
or Wall Street building. as compared
with building on side street. some