Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-12-24
RENT 1890 PER CENT
OF TAX VALUATIONS
Office Building Owners Com
plctc Survey of United
States.
EXPENSES INCREASE IS SMALL
Incounr shows Inrrcnsc OF iO.I Ter
Cent In 1921 over Io.O-I'itts-
bmrEh Cost Is Highest for Keeping
building Clean.

CHICAGO. Dec. 23-Cost Of opcr-
alton as VOL as TIA" income derived
from Office and mrrcan,ilc build
inrs was on tn" up-rrad" during
1921. compared with 1920. according
to survey just completed hy tho
National Association OF Building
owners and Managers. Taxes. de-
probation and insurance accounted
FOR the increased operating costs
Comparison Of scvcnty-hve build
incs which contributed to tho survey
"f 1920 and 1927 shows an Increase in
operating expenses of % per cent
an increased income OF 1914 pcr cent
The report for 1922 is from 1852
buildings located I'm forty-Scvcn diff
f"rcrt cities. including New York.
Chicago. cleveland. san Franclsco
and Seattle
unnEc OF Rents.
tn" r"pnr; shows that rents range
from 50 cents per squar" foot for
LOFT buildings 10 81 per square zoo,
for the highest type of Office build
lag. with mean average OF {l:0
per square foot. II is explained
that Will" this average ia less than
tie prevailing market price for Of
fee bindings. this fac, is due TO
long time prc-war level made a;
low rat"r
Tho tax valuation OF land and
building averages 1926 per square
foot. according 20 tho report Tho
average relationship between tho to-
tai Tax valuation and rent shows tho
latter TO be approximately 1920 per
cent or the total tax valuation The
average net return IS 73o per cent,
81 the tax valuation. and in realty.
% per cent earnings for Office build
inrS The highest net income re-
ported was from Oklahoma. duo Ia
appnr"n, low land valuation, SAYS
the report,
Among tn" factors Increasing on
Grating costs w"rc Increases In RI
pairs aud alterations, Insurance.
iaN">. depreciation and axod
charges Little Rock. Ark. has the
lowest tax rate. l57 per cent. win
cleveland. Ohio, the highest. ass per
cent. and Chicago close second
WIN 80 per cent, tho report shows
Heat Imp"rinnt Tnctor
Heating Is an Important factor In
hH'1hing costs. 10" report showing an
aN"'hr" ~ eigh'y-"ight pounds az
steam r"r squar" foot mus, D.. FUR
nSh"d during the y"ar. costing on
an ayerar" Of &c cents and conxvn.
ing us rounds of coal
IN" highest op"rstiuC "xpeusc
was recorded Ia Duluth. with the
lowest r"por'"i ia san Francisco.
Whil" Duiuth mad the highest in
'G'"nc" rate. New York and seattle
registered the lowest rates DyIuib
also showed TIA" highest d.pr.cla.
ton charges, WAN Omaha Reporting.
th" Lowest
Labor conditions treated I'm tho
report show that whil. tho per diem
IN Chicago is IA" highest. tho COSY
pr spnHre foot IN na.nteusuco *
much less than In maiy o,n.r ,iti.s
Tho matter rr keeping 4 buiriIrr
'I""n Nari"S accurdiu. to tn. ,It..
showing that ia Pittsburgh 4 re-
G'ir"s II" days 81 labor for each
'""uSairi feet. while ia Ind!snapol!s
only t!iy-scvcn days are needed
WIN Chicago using IFS The rcpor,
as" dlS'los"s that power can he mar.
chased from central plants ., l.-s
cNp"n>" than manufactured on tho
premises exclusive OF depreciation
to ~" power plant
'hi"nG" Lends in Rent Spnrr.
The survey In Chicago shows Ina,
II has ia squar" feet OF ron, sra,.
l'r "ach square foot OF ground. De
'r"it. with So t.ct. * second ~
Tor" and Office r"n; is $3.50 I'm Ncw
York S2iN In Detroit and s22l in
th'c"Eo The building values for
'h' square foot ~ rental space was
hiEh"st in San Francisco.
IN discussing tho question as ~
whether Office buildings are profit
"h!" h"youd a certain height, thu re-.
port states that 1t has been discoy.
cred that both gross and nc, i'm
come increase with he height az
building up to tw"nty-four stories
win the gross income increasing
faster than The net. indicating ma,
expenses also increase with hcirh,
IL would therefore. seem tina, y
"fhit ihir1t no reached az poir,
Wh"re the Increase in expenses bay.
onset the increase in income such
limit. however, would probably d.
pend more upon tho size OF the 10,
man the height OF the building. tina,
Is Tor very tall buildings on small
lots the economical height would bo
t'achcd at a much lower poin; thar.
Tor tall buildings on large lots"