The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-01-04

square foot Tor the highest type of
office building, with a mean aver
age of $50 per square foot. 1t is
explained that while this average
is less than the prevailing market
price for office buildings, this fact
is due to long time pre-war lease
made at low rates.
The tax valuation of land and
building averages 1896 per square
foot, according to the report. The
average relationship between the
total tax valuation and rent shows
the latter to be approximate 1880
percent of the total tax valuation.
The average net return is 7.39
percent of the tax valuation, and
in reality, SO per cent earning for
office buildings. The highest net
income reported was from Okla
homa, due to apparent low land
valuation, says the report.
Among the factors increasing
operating costs were increases re-
pairs and alterations, insurance
taxes, depreciation and fixed Little
Rock, Arkansas, has the lowest
tax rate, 1.57 percent, with Cleve-
land the highest, 3.55 percent and
Chicago a close second with 1927
per cent the report shows.
Heating is an important factor
IN building costs, the report show
ing an average of 83 pounds of
steam per square foot must be fur
nished during the year, costing on
an average 7.6 cents ard consump-
ton 17.8 pounds of coal.
The highest operating expense
was recorded in Duluth, with the
lowest lepoi ted in San Francisco.
While Duluth had the highest in
surance rate, New York and
Seattle registered the lowest
rates. Duluth also showed the
highest depreciation charges,
with Omaha reporting the lowest.
Labor conditions treated in the re-
port show that while the per cent
IN Chicago is the highest, the cost
per square foot in maintenance is
much less than in many other cities.
The matter of keeping a building
clean varies according to the citv
showing that in Pittsburgh it re-
quires 210 days of labor for each
thousand feet, while in indianapolis
only 81 are needed, with Chicago US
ing 118. The report also discloses
that power can be purchased from
central plants at less expense than
manufactured on the premises, ex-
Of io%; -
plant.
The survey in Chicago shows that
it has IA square feet of rent space
for each square foot Of ground. De-
troit, with S.2 feet, is second. Aver
age rent per square foot for both
store and office rent is $3.50 in
New York, SEAS in Detroit, and $22i
in Chicago. The building values for
each square foot of rental space was
highest in San Francisco.
In discussing the question as to
whether office buildings are profit
able beyond certain height, the re-
port states "that it has been dis
covered that both gross and net in
come increase with the height of il
building up to twenty-four stories,
with the gross income increasing
faster than the net, indicating that
expense also increases with height"
1t would therefore seem that the
limit might be reached at point
where the increase in expense have
offset the increase in income. Such
a limit, however, would probably de-
pend more upon the size of the lot
than the height of the building, that
is for very tall buildings on small
lots the economical height would be
reached at much lower point than
for tall buildings on large lots.