Columbia University Libraries Digital Collections: The Real Estate Record

Real estate record and builders' guide: v. 29, no. 726: February 11, 1882

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120 The Real Estate Recorix February 11,1882 swell the receipts of the railroads; high prices always check business. Stocks are a sale when grain, provisions and cottoa go up and a purchase when they go down. Dwellers in great cities are the principal suf¬ ferers when the necessaries of life are put up to liigh figures. ALL ABOUT RENTS. The landlords have ordered an advance in rents along the whole line. New York is increasing in population and business, and, as a consequence, tenements, stores, dwellings, offices, and even rookeries, are in demand, which state of affairs is naturally taken advantage of by owners of improved realty. During the past week a representative of The Real Estate Record has been thoroughly in¬ vestigating the rent question in all parts of the city. He has interviewed real estate brokers of all kinds, and has not neglected would-be tenants. The result is given in detail below. Down-town Business Property.—In no part of the city has there been so great an increase in rents as in the great business centres, especially in the lower part of tho island. The marked rise in value in business property, as shown by the auction sales, is due to the great extension of the internal and external commerce of this port, which has created a demand for stores, offices and business locations. Rents have been marked up ten and fifteen per cent. The brokers agree in saying that the office business has not been over¬ done, and large as has been the supply of new offices, not less than 1,.500 during the last year, the demand has more than overtaken it. This is especially true of the neighborhood of the great exchanges. The fact is noted that the de¬ mand for well-located offices in Broad, Pine, Cedar, Wall and New Htreets, Exchange place and Bi'oadway below Fulton street, is not only keeping pace, but fast outrunning the accommo¬ dations which have been provided, or which are nearing completion. Already many of the offices in the Marquand, Kelly, Mills and Tribune struc¬ tures are engaged, and at very fair figures. Last year, on the expiration of leases, there was an extraordinary advance in rents, but there has been no recession this year; on the contrary, in every case where old leases expire, rents have advanced beyond last year's figures. In many cases fifty per cent, over the rents in the old leases has been asked and cheerfully accepted. In the Trinity building leases made two years ago have been advanced as much as a hundred per cent. This has been severe upon the real estate brokers who occupy the basement, but they have been forced to submit. Wherever business is being done in the great marts of trade, there has been a large advance in rents. This is true of all the great down-town thoroughfares, and particularly of Broadway. One instance is noted of an advance of 180 per cent, over the price which obtained two years ago. Up-ioivn Store Property.—This class of realty is in good demand, and will bring slightly higher rentals this year than last. Property on all the leading avenues rents readily, in fact, there are but few stores vacant. Leases in this class of property usually date from May 1st, so that it is somewhat difficult to quote the exact increase, if any, that will be demanded, but cases are noted where tenants have been notified that 10 per cent, additional rent will be exacted after that date. Private Dwellings.—The demand , for houses, large and small, continues unabated, and is far in. excess of the supply in the market. This class of realty rents readily at an advance of 5 to 15 per cent, over the prices prevailing twelve months ago. This, of course, applies only to un¬ furnished houses, there is no demand for fur¬ nished houses in the spring, as the supply of the latter invariably exceeds the demand at this sea¬ son of the year. French Flats.—It goes without saying that apartments in flat houses, large and small, are eagerly sought after, and notwithstanding the enormous increase in accommodations of this character, there is not the slightest difficulty in securing desirable tenants at remunerative rents. In some instances, where owners have desirable tenants, no increase in rental will be demanded. The average advance in property of this de¬ scription will probably reach 10 per cent, over last year, while expiring leases in first class apartment houses will not be renewed except at a still larger iucrease. Tenement Houses.—This description of realty, which, of course, comprises a very large propor¬ tion of the homes of the masses, will also be sub¬ ject to a considerable advance over the figures of a year 'ago. The advance demanded by land¬ lords is being acquiesced in by the tenants who are enabled tp pay more rent by the increase in wages in almost every branch of trade. E. H. Ludlow & Co. say there has been an advance in the rents of all descriptions of property, notably in well located offices and private dwellings, of which there are a very limited supply. Many persons register furnished houses to rent with brokers at this time of year, but these it is almost impossible to find tenants for, as there is no demand for them before early in the autumn. In regard to the Borecl Building, of which they are the agents, they report that there are fifty applicants for every office that through any cause is vacated in that building. Morris B. Baer & Co. report that they have not advanced the rents in the fiat houses in their charge, but that they find no difficulty in procuring tenants. Up-town private houses in good demand at about last jear's prices, while for down-town business property, an increase of rent ranging from 10 to 50 per cent, is demanded, and very generally acceeded. H. H. Cammann says up-town business and residence property, where the rents were raised last year, show a still further advance of from 5 to 10 per cent., except in a few instances, where the rents were fixed last year at the very high¬ est figures they would stand. The price for flats will also be advanced, as they are in great de¬ mand. Crevier Brothers report an advance in all classes of property under their charge, without causing much change in tenants. They advanced the price of apartments in tenement property $1 per month from February 1 st. Stores on Bleecker, Canal and other streets on the West Side are in good demand, and bring increased rentals. J. Romaine Brown thinks it a little early to speak with exactness as to rents for the coming season, but regards an advance of 10 to 15 per cent, for stores and dwellings lying between Thirty-second street aud Central Park as well assured. There will not be much advance in tenement property lying between Sixth and Eighth avenues. Broadway and,: Eighth avenue stores and flats are in great demand at advancing figures. James R. Waterlow quotes rents for stores and flats located between Thirty-fourth street and the Park at 15 to 20 per cent, higher than last year. Stores are generally well rented, and va¬ cant ones are very scarce; so that owners are enabled to select their tenants. Tenement prop¬ erty has not been so well rented any time since the war as it is at present. S. F. Jayne &, Co. report a greater demand for Sixth and Eighth avenue store property than they have known for some years. There will be a natural rise in rents for store buildings of about 10 per cent. Dwellings where the tenants pay promptly wiU in some instances be relet at last year's figures, but where new tenants come in a slight advance will be demanded. All residence property between Fourth and Sixth avenues will return at least 10 per cent, more, and in some instances the advance will reach 15 per cent. Most of the property under their charge is old estate realty, and it is not their policy to force rents up to the very highest market rates. Tene¬ ment property is in great demand near the large manufacturies at an advance of $1 per month. Sixth avenue store property is bringing higher rents than at any period since the ^break in 1873. Jacob Appell does not expect to advance the rente of property under his charge to any mate¬ rial extent. Many tenants now complain of the high rates prevailing. There is a strong renting demand for all classes of property from desirable tsnants. MINING INFORMATION. There is not much to note in the market this week. Speculation has been dull, and prices dif¬ ficult to sustain. A great deal of territory is being explored, and rich finds will reawaken in¬ terest in the mining stock market. Another dis¬ covery on the Comstock would make a very live-. ly market, but even without that stimulus there are properties in Montana, Arizona and New Mexico which some time or other will be the basis for active speculation. Quite a number of companies are in trouble, because of their inability to raise money to prosecute the work of development. It is a pity we have not some well-guarded assessment pro¬ vision by which stockholders could bo called upon to pay for the work of developing mining properties. The wonderful mineral wealth of the Pacific coast is due to the distribution among the stockholders of the cost of opening up mines. The system has been abused, but stockholders who do not like assessment stocks can sell them. Take the case of Bull Domingo. It is a mine of splendid promise, but its shaft has been sunk barely 300 feet and has stopped because of a debt of $120,000. The stock was originally floated at preposterously high figures and the proceeds were pocketed, of course, by the promoters. Knowing they had been fleeced, the stockholders did not care to take the bonds, which were offered to pay off the debt, and resume work in develop¬ ing the mine. Were the stock assessible, the debts could have been paid and the work kept up. To get the company out of its troubles, new stock is to be issued to the amount of 200,000 shares. These are to be offered to the stockholders at $ I a share. If they don't take them, the credit¬ ors are expected to accept the stock in lieu of their claims. This, it is hoped, will give some $80,000 to continue the work of developing the mine. The Bull Domingo has a splendid plant and one of the best concentrators in Colorado. It is a mine of very great promise. There are signs of activity in Big Pittsburgh, due to the discovery of rich ore near the Henri¬ etta ground. This company also got into trouble from an inability to assess to pay for the work of development. Not being able to do any better, permission was given a responsible person to sink a shaft on his own account, he to pay a royalty of one-fourth of the mineral, should he find any. Rich ore has been struck in this contracted shaft, which has led to renewed activity in the stock. William M. Lent says he is buying Standard of Bodie. He has great faith in the Bodie mine, and would not be surprised if a great bonanza was found to the east. They have very rich ore in the Bodie mine in the old workings, 800 feet below the surface, and this at a point only 200 feet distant from the Standard boundary line. Eight hundred feet deep in the Bodie means 1,000 feet deep in the Standard. If there is rich ore on that depth, then are the stockholders of Standard fortunate, for so far no valuable ore has been found in that mine below the 50D-foot level. Mr. Iient believes there are three years' dividends in sight. He thinks a great bonanza may be found in the Bodie district far to the east of the present workings. At the 800-foot station of the Lent shaft they will shortly begiii to cross¬ cut to the east, and they expect to strike the vein within 120 feet. The Rugby Colony is a practical failure. Our readers will remember that when first established we pointed out the difficulties that lay in the path of any co-operative enterprise of the kind. In theory and on paper these colonization schemes and co-operative enterprises seem very plausible, but, after all, immigrants who paddle their own canoes do better in the long run. It seems there was somewhat too much managln g