Columbia University Libraries Digital Collections: The Real Estate Record

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REAL ESTATE Ê@®Ei®-iacín®B 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.