The Washington times., 1929-01-05
j. 5. BUSINESS
IS BETTER
HOUSED

Never before has the business OF
the nation been so adequately
housed. The past few years have
witnessed a building boom in the
construction of office buildings and,
according to Paul Robertson, of the
National Association Of Building
Owners and Managers, is unprece-
dehted in any period in the history
of the nation. More fine buildings
have been added to the list of
notable structures in the United
States, with the result that Amer
lea today finds itself amply pro-
vided for in office.space require
ments.
Surplus Space
eve are entering the new year"
Mr.. Robertson says. with an avail
able surplus of office space that is
sufficient to care, for the needs of
an expanding business in the ma
tion for a period of at least three
years. The percentage of vacancy
Is. however, little more than the
normal 10 per cent which is esti-
mated by every successful building
owner and manager as normal.
due to the high cost of building
operations, there can be no ex-
pectancy of lowering of rental rates.
In fact, the contrary is more likely,
since tenants moving from the older
to the most modern buildings ex-
pect and are willing to pay more
for their space.
Fortunately, there is an ever
growing realization among the busi-
ness establishments of the nation
that efficiency of employees, which
IL demanded today, can come only
through the provision of adequate
floor area to insure elimination OF
noise and proper working quarters.
This, in no small measure" he says,
''has been accountable for The abb
sorption of much of the new space
that has come on the market.
Six Months Demand
There will be no unstahiliZing in
flnence caused by new buildings COM
ing onto the market during the next
six MONTHS Robertson says, but
danger signals are flying for those
who expect to add to the office floor
areas in the months that follow,
since they will find that their addi-
tions will bring the occupied floor
area below the normal in most cities,
thereby bringing into play the mex
Orable law of supply and demand
which may result in a disastrous eff
fort upon those holding large floor
areas which are unrented. The cost
of the production OF office space Is
so high that rental rates cannot fall
below the rates prevailing in most
cities Of the United States without
serious financial loss to those own
ing and operating buildings in which
cheap rents prevail.
Those who are contemplating the
construction of new buildings will do
well to study the needs of the city;
sac space already available and the
safe of absorption of that space.
II do not look forward to any Sc
.4ous recession in the amount of con-
htruction. There are enough prof.
.ects already on the architects boards
to insure fairly active year in the
office building line. A $4,000, ,000,000
year Qncluding all classes Of build
ings) may be assumed as normal, of
which one-eighth will be in the pro-
duction of office buildings.
1T is my confident expectation
that this new year viii find the
building industry almost as active as
in the past fet' years, and that the
normal expansion Of business will
take up much of the new space at
rates that are comparable with those
which are at present prevailing"