New-York tribune., 1922-07-23

"Hcie SHe cfdIn STORE organization mas
not yet secured foothold and the dis
trict is in the process Of development.
to determine the possible rental
value the owner or broker must make
very careful study of the lines Of
development and the expansion Of the
block or district and the prevailing
conditions that are likely to bring
about or continue the devclopment and
Improvement. One must also consider
detrimental features that unexpectedly
arise to affect rental values. This is
considerable investment and where
the lease is for lone tcra If years
The physical arrangement OF the
sore property is always 2 Fital mat
E3r; the type and choracts- of the
building in which the stores are to be
situated must be regarded carefully.
Frequently the desire OF an owner to
maintain certain standard. to benefit
the upper or adjoining portions Of the
property, will exclude from the stores
a tenant who would ordinarily be re-
garded as desirable and who would pay
higher rental than the occupant for
whom the owner has particular
preference. In limiting occupancy il
frequently results in the condition that
the space does not bring the full ard
actual rental value. Notwithstanding
this, the owner may be consoled by
the fact that the difference is more
than Offset by the advantage 20 the re-
malnder OF the property.
My activities extend for fifteen years.
and during this time l have rented
hundreds of stores, although princi-
pally to and for the chain store con-
Germs. Ny general knowledge IS nat
urally limited to this field OF renting.
&c
covers more than a fair proportion of
the general renting bushes.
In an endeavor to determine rental
'Falue of space in which our clients are
Interested we analyze the location in
its present state and endeavor to
prophesy the trend and the nature of
development. The transportation ia
cliities, the conditions that will de-
Veiop the block as a thoroughfare, the
surrounding skyline as a background
from which merchant may obtain
business, the principal entrance to
large office building on the same block
invariably add daily to the thousands
Of persons ordinarily passing the prop
erty.
Things To Be Considered
The physical condition of store Is
always to be considered The maxi
mum amount of actual glass frontage,
the proper ceiling height, the floor
level with the sidewalk and a space
with minimum amount Of columns or
distractions are naturally and gener-
ally preferred. The exclusion of base
ment space, which might be reserved to
rent as a separate unit, naturally re-
duces the area in which the merchant
may carry stock and would therefore
limit the volume of business that could
be done while the owner suffers
slight depreciation in the store rent by
the elimination of the basement, the in
come from the basement as a separate
unit is always substantial Offset. The
grade of a street, the width, of the side
walk, the obstruction of building en-
trance, basement entrance, street
subway entrance that will obstruct the
view of shop window, are elements
that have considerable bearing on the
rental values.
Frequently. where a merchant de-
sires or obtains lease for lone term
OF years, the unforeseen extension of a
subway line, the elimination or addi-
tion of subway stations entrance
which tends to divert or reduce pedes-
trlan traffic at one point and improve
same at another point, is a problem
that store owners are confronted with
While the opening of new line or
tain blocks or properties, in many
cases the diminished traffic affects the
rental values Of the area in which the
change has been made. When the
westerly subway lines were opened it
created a new field of thoroughfare
blocks and central points, but the rner-
chant who had taken space at a rental
predicated upon the business to be de-
rived from the joint volume Of traffic
found that the volume had materially
dwindled and that the purchasing
power had been diminished.
Great care must be exercised by
storekeepers in the selection Of loca-
tions where the grade Of articles sold
by them viii be best adopted to the
large percentage Of the traffic
Maximum rental values can be OBJ
tanned more readily for small units
where the area is adaptable for cigar
companies, shoe dealers, hatters, etc,
as reputable merchants of this type
have calculated their business can be
conducted best in a limited area and
that it is possible to pay as a rental
per cent or per cent on the gross
volume of sales that have been calcu-
lated to be made in a given location.
restaurants, confectioners, florists,
furnishers, jewelers., etc., have been
calculated to pay as rental Is per
cent to 20 per cent on the gross volume
OF sales, so that the area cs tile space,
its particular position in relation to
an adjacent thorouehfare and the
Willingness Of the owner 90 take lines
of businesses as Indicated, are ali
logical and important factors in the
rental values OF store space.
Good Locations Limited
We have been frequently asked
whether the present alleged high rents
paid will be maintained. Ii is my view
that first grade locations, which nat
urally are limited by reason of the de-
mand for such space, will have a tend
ency to remain and possibly increase
the prevailing ratio of rentals. | know
of many representative merchants who
insist upon first grade locations, it
being their theory that this location is
most important, as it gives them the
greatest amount of purchasing power,
and, other than the rental itself, the
cost of operating an establishment in
this zone does not differ materially
from the cost of operating store space
IN location where they are deprived
of these advantages.
A few years ago, in the Broadway
and Times Square district, the rental
prevailing was about $500 per running
front foot for store and basement
space with an average deDth of 10 feet