Evening star., 1938-12-17
JournoI
Continued Prom FIRST Paee)

ward uniformity in account classifi-
cations, needed to make possible the
collection of accurate data on costs
OF operation of various types of
property.
John w. Schaef1e, vice president of
Baird and Warner, Inc, of Chicago,
writes on finding the market for
residential and commercial space.
The journal carries a roster of
certified property managers, persons
who have met the membership quail
if1cations of the institute rs to expe-
rlence and business standing In the
field of real estate management
and knowledge OF and ability to Gre
ate and execute management pro-
grams for typical income properties.
The institute was organized by the
National Association of Real Estate
Boards to identify competent and
reliable managers Of real estate and
to advance sound management prac-
tees.
A row of stores and apartments
built in one Of PHILADELPHIA s
prominent suburbs, the stores Of
which have never been occupied
in the 10 years in which they have
been built, were cited by Mr.. Keck
IN his discussion as Illustrating the
loss Of value which may be occa-
stoned by functional obsolescence
There has never been need for stores
In this particular location, although
a hot-spot business section is one
half square to the west on the main
street. The adviser who counseled
the lot owner to build stores where
only apartments were needed de-
veloped functional obsolescenee in
the buildings from their start.
Over improvement, under i'm
provement or improper improve
ment Of land" he warned. must
be given very careful analysis by
the managing broker who would
advise an owner on type or size of
building to construct"
Not An Easy Task.
Removing functional obsoles-
cence is by no means an easy prob
lem, but it is not an impossible
task" Mr.. Keck says.
"A real estate manager can not
serve his clients in a shabbier way
than to advise an owner Of a piece
OF real estate to redecorate a prop
erty, under the expecta ton that
that will satisfactorily fit it to at
tract tenants, while it is reeking
with functional ohsolescence.
1T is easy to recognize physical
deterioration of a building-wear
and tear on the plaster, corroded or
rusty pipes, bulging brickwork-and
1t can be corrected. But the treach-
erous form of deterioration. the
kind it takes skilled management
to recognize and cope with. is OBJ
solescence. Obsolescence may be
economic or it may be functional.
Economic obsolesence is that
caused by conditions outside of the
property itself. Functional obso-
lescence is that form of deprecia-
ton which is inherent In the prop-
erty itself. To deal with this factor
one must know q great deal about
economics, Municipal ordinances,
population trends, taxation and nu-
merous other hidden conditions
which surround neighborhood and
a property site and affect its desira-
bility and utility. 1t is just as i'm
portant for all real estate managers
to have basic data on the city.
the neighhorhood and on general
business trends, to follow in the
management of real estate as it is
for the real estate appraiser in the
assembling of all the information
that affects the value of a piece of
real estate.
"The property that is in an ever
changing location, among properties
built many years ago, and suffering
at the same time from physical de-
ter!oration, Is the property that