Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-14

Discussing the skyscraper question
and the survey, Mr.. Clark said:
Obviously, if it can be conclusively
demonstrated that tall buildings as a
class are improbable or less profitable
than low buildings, inventors will cease
to erect such structures and legislators
will not hesitate to disf ourage them.
1T was decided. therefore. to make
a special investigation of the economic
height of building Oh a specific site
and to make the results available for
public consumption and criticism.
I'm undertaking to make this special
Investigation to determine the most
economic development OF given site
we decided upon the following condl-
tions and methods:
plans and specifications We're to be
prepared for a number OF buildings
VARYING in height from, say, to 10
stories to rs or 100 stories: the cost OF
construction of each building and the
total cost of the property as developed
to the varying degrees OF intensity was
to be determined; and careful estimates
of gross revenues, operating expenses
. and net income for each property, after
adequate allowance for depreciation
and obsolescence, were then to be pre-
uared. Knowing the total 1nvestment
and the net income in each case, II
was felt that the most economic type
OF development would Immediately oe-
come apparent and that from the data
secured it would be possible to develop
a curve which would probably show a
trend toward increasing returns up
tn the point of maximum economic re-
tt1rn and thereafter diminishing re-
turns until ultimately a height wouio
he reached where net income Woulo
disappear altogether.
New York Site Chosen.
"The site selected was to be chosen
from one of the congested, highland
value areas of New York City, where,
if anywhere, tall buildings would seem
"The striking fact revealed by this
table is that a height of So stories IS
discovered to be the point OF maximum
economic return.
at is only in the 63-story structure
chat the total cost assignable TO tne
Hand is for the first time equaled ana
eaceeded by the total cost assignapie
to the building. In the 7o-story pullo-
inn, total building cost exceeds aggre.
gate land cost by the extra cost OF
Constructing the last IL stories and the
loss in rentable space are so great tnaC
the average return upon the tota1 m
yestment is slightly less than tor the
63-story building, namely, 1905 per
cent. =.
caution must be used. however, IN
projecting the curve beyond the hmlts
of our study, and particularly in at
tempting to apply the formula to other
sites.
Nevertheless, of one thing we can be
reasonably sure, and that is that no
matter what the size or value or loca.
ton of the plot or the character OF
building, the law of diminishing returns
will set in at some story height ana
sooner or later a point will be reached
beyond which it will not pay the owner
to build under the existing conditions.
Importance of Shape.
''It is probably safe to say that sec
ond only to land value as factor In
determining the economic height OF
building are the size and shape OF the
plot. Perhaps, indeed, these factors
should be ranked as first in Importance.
Legal limitations upon the free de-
velopment of building sites may be one
of the most important factors. deter
mining the economic height of build
angs. If no such arbitrary restrictions