Evening star., 1940-01-06
Percentage Leases
OF Nation Tabu|ated
In New Handbook
Included Is Study
Of Rental Returns
To Owners

Percentage lease rates at which
leases have been closed within the
past year in cities large and small
all over the country are tabulated
in 100-page handbook, percentage
Leases" just issued by the Brokers
Division of the National Association
Of Real Estate Boards.
In consolidated tables which cover
48 large pages, the new handbook
gives the actual percentage rate at
which leases were made both in 1899
and in 1898, for 1927 types of business
in 81 cities scattered through "a
States and Canadian provinces.
Through footnotes it gives in addi-
ton specific detail about the indi-
vidual leases of Importance for COM
parative purposes. These footnotes
frequently name the individual re-
tail company making the lease,
where it is nationally known COM
pany, and add such details as: Rate
8 per cent going to 10 per cent on
a larger volume" Lease a strong
chain store, originally capable of
producing a large volume" 100 per
cent lot, Suburban location, With
guarantee of $80OO0," "Remodeling
by landlord, heat by landlord no
minimum guarantee" Covering 96
leases now in effect in this city"
Minimum guarantee. sl65 monthly
with 2la per cent Of the gross"
The comprehensive study is made
from reports to the division from
120 leading leasing brokers of the
country in reply to questionnaire
to division members. The tables and
notes cite in each case the name of
the lease specialist reporting, and
give not only percentage rates at
which leases have been closed this
year in every section of the country
but also opinion of the leasing au-
thorities as to fair rates for the
various types of business.
Rental Returns Analyzed.
Included is a study made by the
Percentage Lease Committee of the
National Association of Building
Owners and Managers analyzing 420
store leases covering businesses in
80 cities as to whether or not the
leases in question produced a sat-
isfactory rental return. Included
also are percentage rates reported
by committee of the Building Man.
ayers Association of Chicago after
analyzing more than 300 store leases
in Chicagos central business dis
trict.
With business conditions con-
stantly changing the division has
felt that 1899 percentage lease fig
ure should be made available. Leroy
Ackley, Los Angeles. chairman.
states. Earlier publications by the
division on percentage lease rates
were issued in 1885 and 1897. The
1885 edition listed opinions of seven
leading leasing authorities. cited
rates that had been used for previous
years. going as far back as 1921
the earliest year for which such
tables are available The 1887
edition, citing nine leasing author
ities, also included rates of previous
years. going back to 1921. The pres
ent edition. based on 12O sources,
brings the whole series up to date
and greatly broadens the informa-
tion thus made available.
Small Cities Data Available.
Percentage lease rates actually in
use in small cities are for the first
time made publicly available.
The figures given in the division S
consolidated tables as percentages
which apply or have been applied
to various types of business as the
portion of intake which the business
can pay as rent are to be consid-
cred as suggestive only, the division
warns. They can serve only as a
rough guide for negotiations and
checking. The percentage which
any individual business can pay will
depend upon the experience and skill
Of its management, the purchasing
power of the district, the location
OF the store in the district, the char
acter Of occupancy in adjacent
stores, the advertising policy of the
concern and number of other in
huencing factors.