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REAL ESTATE
AND
(Copyright, 1917, by The Record and Oulde Co.)
NEW YORK, AUGUST 25, 1917
CESSATION IN BUILDING ACTIVITY CAUSES
SHORTAGE OF RENTABLE SPACE
Situation Next Year Promises to be More Acute
THAT a shortage of rentable space
in apartment houses in every section
of the city exists has been known for
some time, but few realize the serious¬
ness of the situation. The condition is
due to the present buildin.a: inactivity,
and there is every prospect that the situ¬
ation will become more acute in 1918.
While owners are receiving, in many
instances, larger gross returns on their
investments, still they have extraor¬
dinary expenses to meet, which serve
to reduce the net income to a figure
even lower than last year. Coal is an
important factor in the managernent of
an apartment house, and there is little
likelihood that the new price concessions
will materially effect the owner.
In order to ascertain the condition in
that section of the city east and sovith
of Central Park, where many of the
finest structures have been erected, a
canvass was made and table printed
which show the condition in houses typi¬
cal of the section. When it is considered
that more than a month must elapse be¬
fore the renting season is over, it cai'
be readily seen that the available space
on October 1 will be practically nil.
Moore & Wyckoff's Houses.
Walter C. Wyckoff, of Moore & Wyck¬
off, reported the renting conditions bet¬
ter than for many years past. "There
is a shortage of high class suites." said
Mr. Wyckoff this week, "and there Hoes
not seem to be any likelihood that the
situation will improve in the immediait
future. The conditions are so well un¬
derstood that the tenants realize that
the owner cannot do a great deal.
"While it is true that in some in
stances rents have been raised, still this
increase in revenue to the owner is .""ot
sufficient to reimburse him for the extr'i
outlay which he must make. The price
of coal is high, and though there i-
"price regulation" in the air, still the
conditions in the local market are un
changed. There is a possibility that the
price of coal will be reduced to the ulci
mate consumer, and if this happens, *h.
tension will be relieved somewhat.
"But coal is not the only item of addi¬
tional expense to the landlord. The mat¬
ter of elevator boys is a serious on •.
During the past year two separate
raises in salaries have been granted, and
still there is a serious shortage of boys
who are able to handle an elevator prop¬
erly. Decorations have increased in cost
out of all proportion, and fixtures are al¬
most prohibitive in prices. 1 do not
think that there wil! be much speculative
building during the coming year, and I
look for a still greater scarcity in de¬
sirable suites next year.
"So far as the apartment houses un¬
der our management are concerned, we
are practically one hundred per cent
rented, and before October 1, I antici¬
pate that all the space will be occupied.
The buying market has not shown signs
of reviving, but so soon as investors
realize present-day conditions I look for
an active selling market. There is much
cheap property, and many bargains can
be picked up. Owners will realize this
condition, and then the brying demand
will be stimulated."
The following table Indicates the num¬
ber of vacancies in some of the apart¬
ment houses under the management of
Moore & Wyckoff:
No. Rent-
No. Height. Apts. ed Vacant
Location.
Park Av.....
Park Av.....
Park Av.....
24th St. E.,.
nSd St. E....
5.Sd St. E....
40th St. W...
Madison Av. ,
405
410
105S
118
115
123
4
.691-695
12
13
G
9
9
9
6
24
23
24
18
19
36
12
18
20
15
15
15
6
15
34
24
23
24
18
19
36
12
18
20
15
12
15
6
15
34
OOth St. E.....128-130 5
173d St. W..... 526 5
173d St. W..... 565 5
Gramercy Pk. . 20 5
sr.th St. W..... 41 5
160th St. W___ 556 5
T2A St. E-...... 150 12 34 34 0
Pease & Elliman*s Houses.
W. E. Barton, of Pease & Ellimaii,
stated this week that the renting condi¬
tion in the section to the east and south
of Central Park has been splendid during
the past few months, though just at the
moment there seems to be some hesi¬
tancy on the part of tenants to sign
leases. Still, there is only a smalj per¬
centage of vacancies, and there is but
little doubt that when the renting sea¬
son is over that apartments will be at
a premium. The comparatively small
number of new structures erected dur¬
ing the current year is bound to be felt,
and the present rentals should be main¬
tained. Mr. Barton said, in part: "We
have found our tenants most reasonable
in thc requests, in fact, more so than
during any year in my experience. Our
office has not raised rents, except in the
case of a few houses, and no concessions
of any kind have been made. The cost
of decorations has advanced to such a
price that we could not afford to be as
generous as in past year, and this posi¬
tion has beeti appreciated by the ten¬
ants.
Following is a table which shows the
status of several of the buildings under
the management of the firm:
Location No.
Gramorry Pk . . . . 13
llth St. W...... 56
17th St. E...... 112
35th St. E...... 145
3fith St. B...... 138
40th St. E...... 144
4nth St. B...... 146
r>6th St. E...... 144
57th St. W...... 49
.n8th St. W......56-62
No.
Height Apts.
.5nth St. W___
.59th St. E___
63d St. E.....
64th St. E___
6«th St. E___
70th St. E___
75th St. E___
S'_>d St. E.....
82d St. E.....
8:^d St. E.....
Lexington Av..
Park Av......
Park Av.....
Park Av.....
Park Av.....
Park Av......
Park Av.....
Madison Av.,,
Mndison Av..
Madison Av.....1190
Mad'son Av..... 1215
Madison Av..... 1219
Fifth Av.
68th St. W.
24
116
116
32
11
178
103
21
43
40
287
.510
5.35
.563
565
829
911
601
667
45
65
72d St. W....... 165
72d St. W....... 167
SOth St. W...... 150
Slst St. W...... 202
S"fh St. W...... 213
S8th St. W___10.3-109
9'>d St. W.
90th St. W. ..
102'1 St. W. ..
Ilnth St. W. .
153rt St. W. . .
Riverside Dr.
Riverside Dr.
214
309
309
315
550
67
127
6
9
6
8
9
6
9
6
7
7
6
9
9
10
12
9
9
10
11
11
5
8
15
12
12
12
7
5
10
7
6
6
3
5
5
7
0
10
6
6
9
8
36
12
23
61
12
36
18
14
28
31
18
37
20
33
17
28
31
o2
33
10
11
29
14
27
48
28
11
27
12
16
6
9
33
10
5
20
43
32
37
48
19
27
7
Rent¬
ed Vacant
7
26
11
21
61
11
27
15
13
24
19
12
35
33
14
27
25
16
32
7
7
29
13
26
40
21
10
18
*>2
'o
10
6
7
5
4
31
7
4
18
29
24
33
42
14
23
6
1
10
1
2
0
1
9
3
1
4
12
6
2
4
0
3
1
6
6
1
3
4
0
1
1
8
7
1
4
5
3
6
0
3
1
2
14
8
4
6
5
4
1
Douglas L. Elliman's Houses.
Douglas L. Elliman, of Douglas L.
I'-lliman & Co., stated this week that up
to the declaration of war the renting de¬
mand was phenomenal, in fact, new rec¬
ords were established. Since that time,
however, there has been a falling off,
though there is little prospect that a
large nuinber of vacancies will exist at
the close of the renting season. Con¬
trary to the general opinion, Mr. Elli¬
man contends that the supply of new
apartments, of the better class, com¬
pares favorably with other years. He is
advising the acceptance of fair offers.
"Next year," said Mr. Elliman, "there
will be a shortage, unless construction
work is resumed. At the present time
there are quite a number of large houses
in course of construction, designed to be
completed this autumn, and these should
show only a small percentage of vacan¬
cies when the books are balanced.
"The older buildings are in good con¬
dition. There are a large number of
people who have not settled on their
plans for the coming winter, and pres¬
ent indications point to a Mast minute
rush.' As everyone knows there was a
shortage in desirable space last autumn,
and many of our clients anticipated a
similar condition this year, therefore
showed more inclination to close early
leases. Once these were taken care of
there was a natural lull."
The appended list shows what is avail¬
able in the houses under the manage¬
ment of Douglas L. Elliman & Co.:
Location
64th St. E...... .32
*Park Av....... 270
tPark Av....... 799
Park Av........ S.30
Park Av........ 840
*Park Av....... 876
Madison Av..... 274
Madison Av..... 414
Madison Av..... 416
Madison Av..... 777
*72d St. E....... 31
Madison Av..... 9.30
No. Rent-
No. Height Apts. ed Vacant
Lexington
Fifth Av. ..
*.'S5th St. W
48th St. E.
48th St. B..
49th St. B.
49th St. E.
49th St. E.
.52d St. E
Av..
901
787
105
18
20
24
26
28
49
57th St. W...... 130
.59th St. W...... 40
59th St. W...... 48
63d St. E....... 23
*72d St. E...... 125
*74th St. E..... 112
79th St. B...... 156
81st St. E...... 157
*86th St. E...... 64
86th St. E...... GS
86th St. E...... 103
Fifth Av........ 820
Park Av......340-.350
Park Av........ 383
Park Av........ 399
Park Av........ 400
*Park Av....... 417
Park
Park
Park
Park
Park
Park
Park
Park
Av......420-430
Av..
Av..
Av..
Av..
Av..
Av..
Av..
5ftth St. E.
62d St. E..
76th St. E.
82d St. B..
.82d St. E. .
S-tth St. E.
Sr^th St. E.
85th St. E.
79th St. W.
470
635
640
755
929
930
969
116
45
12*'
108
122
114
3
106
140
10
12
5
13
12
13
5
6
6
11
12
.5
12
10
9
5
5
4
4
4
6
14
9
9
5
14
9
14
9
14
12
12
12
12
12
12
12
12
17
12
13
12
12
12
13
12
9
9
9
9
9
9
9
9
12
20
108
12
39
24
26
10
18
18
22
15
10
24
9
54
8
8
6
6
6
7
56
18
18
8
54
20
42
28
42
24
48
12
48
24
34
24
29
35
26
13
12
37
12
25
.35
19
22
27
36
36
36
9
IS
24
15
36
0
37
24
22
9
12
14
16
11
8
20
6
36
7
4
5
4
3
3
46
13
15
4
45
5
40
25
25
19
47
12
48
24
34
24
29
35
26
13
12
37
12
25
35
19
22
27
36
36
36
9
18
24
5
72
12
2
0
4
1
6
4
6
4
2
4
3
18
3
4
1
2
3
4
10
5
3
4
fi
15
2
3
17
5
1
0
0
o
0
0
0
0
0
0
o
0
0
0
0
0
0
o
0
0
0
0
0
0
♦Buildings in course of construction.
tBuilding being altered. All tenants moved.
re:cord and guidk is in its fiftieth year of continuous publication.