REAL    ESTATE





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B UILDERS





Vol. CII.





NEW YORK, NOVEMBKR 2, 1918.





No. 18





Empty Broadway  Stores May Find Tenants

Railroad Administration Will Release Tenants Aífected by Federal

War Rulings





REAL estate nien throughout the city will be inter-
ested in the announcement that the United States
Railr(iad .A.dministration, through the New York
City Real Estate Advisory Committee, has inaugurated
an important innovation in its leasing policy affecting
the stores formerly occupied as ticket selling and in-
formation offices. These stores were placed on the
market last May, when it was decided to consolidate
áll the ticket selling places into four large branches.

Under the new arrangement, those tenants who are
called into army service after they have aftîxed their
signatures to leases of stores formerly occupied as
ticket selling ofĩfĩces will be relieved from the financial
responsibility incumbent upon them under the terms of
the lease. Similarly, if a tenant's business is declared
to be non-essential by the Government and he is forced
to give it up in accordance with the Federal edict, he
will not be required to meet the original lease require-
ments and his lease will be cancelled at a minimum loss
to all parties concerned. The adoption of this new
policy is expected to greatly facilitate the leasing of the
stores now available in various parts of the city.

Most of the stores were located on Broadway in
localities where there has been decided real estate in-
activity and all of them were held under leases for terms
of years direct from property owners. A number of the
stores were rented almost as soon as they came into
the market. However, as a result of general real es-
tate conditions and a slackened demand for store space
in many localities, the rental of the remainder became
no easy task, especially since the Advisory Committee
offered no concessions and rigidly maintained its policy
of obtaining the normal renting value of the stores.

When the United States Government placed its neces-
sary restrictions upon non-essential business, many
prospective store tenants in lines coming possibly within
this ruling, withdrew from the market. A similar sit-
uation was created when the draft age was raised to 45
years, and a number of business men, subject to this
call, deemed it inadvisable to tie themselves up in iron-
clad leases.

In view of these factors in the situation, the New
York City Real Estate Advisory Committee, acting for
the Railroad Administration, decided to remove such
restrictions against lessees of their store properties and
consented to insert lease clauses which would relieve
lessees, in the event of their being círafted or in the
event that the merchandise which they handle is de-
clared non-essential. Under the new clause, the Gov-
ernment will cancel the lease with a minimum loss to
all concerned.

About thirty stores and offices are effected by this
new policy, twenty-eight having been rented since the
committee came into being on May 1.

When the United States Government, as part of the





war program, took over the operation of the railroads,
one of the things that presented itself was the keen
competition between the ticket selling offices of the
various railroads. It was decided in the interests of
economy to consolidate these agencies so that now
there are only four established at such strategic and
accessible locations as 114 West 42d Street, 31 West
32d Streét, 57 Chambers Street and 64 Broadway.

The original ticket selling stores were at the fol-
lowing Broadway numbers, 84, 94, 149, 170, 171, 172,
236, 237, 290, 377, 385, 387, 398, 399, 1158, 1182, 1183,
1198, 1200, 1216, 1232, 1236, 1238, 1244, 1245, 1246, 1270,
1276, 1278, 1282, 1354, 1460, 1465; also 263, 264, 487, 501
Fifth Avenue and 140 West 42d Street, and 2094 Seventh
Avenue. In Brooklyn, the railroads used stores at 4
Court Street, 24 Court Street, 9 Flatbush Avenue, 264,
236-238 and 505 Fulton Street. There were in addition
a number of small offices in buildings in various parts
of the city.

Among the tenants who have been obtained for Man-
hattan stores are the GiIIette Safety Razor Company
for 172 Broadway; Bigio Brothers & Company, woolens,
for 387 Broadway, and the St. Regis Restaurant Com-
pany, for 1460 Broadway. The Italian Savings and Dis-
count Company, identified with the Guaranty Trust
Company, took the store at 399 Broadway.

.A.I1 the Brooklyn space has been leased, the tenants
including Henry WiIIard, stationer, for 24 Court Street,
and the Louise Waist Shop, for 505 Fulton Street.

The New York City Real Estate Advisory Committee,
which was appointed for the purpose of sub-leasing
these stores, consists of the real estate representatives
of five of the railroads, namely: H. A. Howarth of
the Long Island Railroad, chairman; H. M. Andrews, of
the Erie Railroad; R. D. Van Duzer, of the Lehigh Val-
ley; F. A. Von Moschzisker, of the Pennsylvania, and
H. R. Wilson, of the New York Central. Francis M.
Valk, associated with the organization of Douglas L.
Elliman, was made secretary and placed in active charge
of the office.

The financial saving from the consolidation of all
these ticket selling activities is indicated by the results
already attained. With half the remaining space still
to be rented, enough has been realized to cover the
rental of the new consolidated ticket selling places, so
that when all the former offices are rented the Govern-
ment may hope to realize a saving in rental of close
to $250,000 a year.

.'Additional income has been obtained from temporary
leases of centrally located stores which are still on the
market and are being held under terms calling for brief
cancellation notices, if tenants are obtained under long
term leasing arrangements.

Most of the old railroad officcs are in favorably
locatcd sectioris where the demand for stores should
soon be good.