The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1925-10-14
FLORIDA IS ON
A SKYR0CKET-
Continued From Page u

4 NO'NOAA -
F1agIer st. in Miami has sold for
more than front footage on Wash
ington St.
This is probably true, But it is
unreasonable to suppose a town
whose highest claim is 100000 popu-
lation and to which the States Of
fetal census allows only 69,754, can
support store which must pay the
al same or higher rent than in a town
q Of 100000 customers.
9r Based on Assumption
The highest assessment con any
Washington, D. c., business property,
is 500 a square foot. A piece in
Miami was leased recently at a rate
of $500 a square foot.
This price was based on the argu-
nent that Miami would have
Il, 100000 population in five years.
But specializing on population in
creases on the basis of boom condi-
lions is exceedingly dangerous.
Allowing a thirty-foot frontage at
i $40, 900 q front foot, the asking price
of a certain Flagler street property
in Miami, it would make the ground
cost $1,200,000. This means an an
nual ground rent, including taxes,
of $4,000 or 8 per cent. On such
extensive ground a huge building
must be erected to earn that rent.
This building would cost no less than
50 600 900, which would add, for In
surance, taxes, depreciation and
,rer cent interest on money invested,
at least $4,000 to the rent.
In other words store or ONCE
Building on that site would have to
Weld $24,666 month to bring the
owner 6 per cent on the investment
provided there were no additional
overhead for upkeep.
How Do They Do It?
Tf a store is on the site, it must
take in 1922 each day before 1t be-
gins to pay for it's goods, the over
head for clerks and service or make
a. profit. How many stores can do
that?
Miami seems to have set the pace
for business site appraisals. So
called business sites in subdivisions
vet to be built bring enormous
prices. Spots arbitrarily zoned for
business or apartment purposes near
larger towns are held at prices out
of all reason. I saw a lot twenty
five feet wide sandwiched between
two little frame shacks, two miles
from Tampa's business district,
marked business property" and
held at $4,000.
In the little town of Melbourne,
with 1,245 people and one small
business block, a lot 50x60 feet was
held at $4,000. I asked the owner
how he justified the price and he
said, "in Miami property brings
thirty times that much for lot
that size in the business section. Mi
ami isn't more than thirty times as
big as Melbourne and my land is
therefore worth at least one-thirtieth
as much as Miami's." There was use
arguing with that man. He believed
it and voiced an even sounder
opninion of values than many al
l. IeSeu real estate OpeTdCOTS tdlhou
with.
Remember These Things \
In buying business property these
things must be considered to deter
mine it's earning capacity:
The number of possible GUS
toners for the business for which
the property Is suited.
O. The chance of getting suffi-
cient share of the business TO pay
rents, overhead and profit.
8. The general adaptability of
the property to the purpose In
tended.
A favorite method of boosting
business property prices Is to trade
back and forth, make fake trans
e.. L..