The Oregon daily journal., March 21, 1909, Page 60, Image 60

THE OREGON "SUNDAY JOURNAL. FORTL'AND, SUNDAY MORNING. MARCH 21. 1009.
ai1..1 mi! i a a.
EXPERT DISCUSSES RENTS FROM
. r STANDPOINT OF ; THE LANDLORD
Tha subject' of ' rents from tha land
lords' standpoint Daa.alwaya been a
tnyaterr to tlx tenant and alaaya will
be for tlie reason that ha has no Mm
nrehenslos ft the Infinite 1 numhor of
l Intra to b taken Into conelduretlon
hy I he nronnectivc builder, all affect
tuff tha Income to be derived from an
Improved property before lie - beclna
work on hi propoead struotura.
An authority on rente, a man who
probably-knows' more about rental
uea than any other man on the Paclflo
roaet. tcent1y. In a, lecture before a
huUdlnar manacra aaaoclatlon said
In narl!
"The owner of a piece f property
after determining to improve It, firat
..- hi to lascertaln what oharaeter of
hulldlnf la beat autted to the alee of
. the lot and lie location with reference
to transportation, both rrelfhl ana paa
sensrr. and Its nearneas to certain
' well . defined characters of bualnens.
makea up his mind Junt what improve
ment he will make. 1-1 ret he muet be
absolutely certain that he is molng to
.. t a- aaliafaotory aarnlnc on tha value
ef the around nlua the coat of the
building;. In a city of 800,000 people
" we will say, it Is Just possible that
,bls building la not adaptable aiiorem-
er to the uses of one class of tiualness
or to one- profession. ...
In arriving at an average of the
requirements to the varied needs of
, several classes of business and pro
fessions tha landlord and his architect
must exercise good Judgment and
foresight, snd this foresight can best
be supplied by calling into consulta
tion man who bave had extenslvs ex
perience , In the management of all
classes of buildings. The landlord's
, object of course is to build . such a
structure ss will produce . the largest
nrihin hut rental Income per year.
: where the rental rates will automatic
ally, gradually Increase from the pres
sure or increasing-demand,- keeping tha
earning percentage at .the right figure
'as ths ground value in increment piles
up. , V
. " . okf Far Into . Tntara. : "'
.. "Ths owner has in mind the class of
tenants to whom he wishes to rent his
space. He has Just so many thousand
' square feet, according to the location,
but before deciding on this rate, he
must from his own, or mr other
owner's experience, estimate ths eost
of keeping this building. If it be an
office building, h must keep It In a
tenentable condition for the business
world that . he proposes to create in
It ; in f set, this applies to any other
class of bnlldlng. , He wonders first
what the assessor is going to l do,
then comes ths question of Insuiynce,
then comes the innocent looking head
ing entitled 'repairs, renewals and al-
' teratlons.' Elevator service demands
a considerable marsln in estimating:
heat, light, power and water can be
reckoned quite closely. ' 2 ''
"Allowance must be made for at
least 10 er cent for vacancies in the
of f icea - At last ths manager thinks
hs has ths expenses of operating seg-
rerated and known tha asrresats,
ahd womlera now
Hs
sdds un the column slid
he is ever to summon ths courage to
demand the rental ratea that will ab
sorb the stupendous sum for operat
ing expense, and at the same time
produce the necessary profit on his In
vestment.
.."llora is another. Interesting sten,
He has to analyte the question of the
HinlaLi rata that muat le charced in
order to meet competition, cover this
operating exnrnse and pay fair divi
dends. If a property must . not 19
per cent, which, by the j way is very
rare, .the- owner, cannot apend any
more for the Janitor or. elevator ser
vice than his competitor, who Is earn
ing 10 per cent on the same class of
building in ins same locamy; inere-
fore his rental 'rate must be practi
cally the same as that or his compel
llor and his oomoetltor . doubtless hai
modern building also and will .very
likely bold his tenants. ... r
Its. Most Important. ,
"If the"ownr Is fortunate enough
to possess : a lot in the best location
In the city, in the very heart of the
financial center of a very progressive
city where the supply of first class
office space Is somewhat meager, the
building of couraa, will promptly fill
uo with tenants snd but little trouble
will ever be. experienced in holding
them. Next, he must keep the build
ing habitable, care 'for the wants of
the tenants, keep out undesirable ten
ants, so that the building may be
maintained at a high standard of rep
utation. The ownership of a Central
business property in a growing city is
the most remarkable and valuable pub
lic utility franchise in the world, and
ret It seems to have been largely over
looked snd Incorrectly estimated.
"Learned 'authority has said, 'finan
cial men understand the tremendous
value qt even a fifty year franchise to
operate a. water, -pltmt, . a street rail
way, a lighting plant 'or a telephone
plant in a growing city, carrying the
right to tax our ever increasing pop
ulation, but "it does not seem to have
occurred to them - that the -ownership
of highly Improved, centrally located
business property is a perpetual fran
chise to collect an ever increasing rent
tax from tha
population.'
same ever . increasing
The rental rate for a souare foot
of floor space In ,a central bualnees
building increases as the population
of the community Increases, and the
vslue of the property HkewlMe in
creases and the highest apaca values
occur only at points where great num
bers of people throng together at the
congested centers, to transact thai
dally business. " There these sky
scrapers rise to meet 'the; pressure for
snacs at that particular apoi and no
where else. There the rental value
per square foot for store, bang and
office BDaca advances from II to 12.
II and on un to aa high ss 140 nar
square root per year, acooraing 10 me
number of people delivered at or paes
Ing the location per day, and accord
ing to the character of toe business
they come to transact. ,
- Where Bents Are Taney.
Of couraa If a man comes to sell
market vegetables or fresh meats or
tha nroducs of bis farm, no such fig
ures as the last named will be charged
for rental apace in . that district, .but
If he comes to consult his lawyer, his
banker, his physician or me broker,
then it is Just possible that figures
that are almost inconceivable will be
charged for floor space In that dls-
net. ' ', -- ,,, ,
The rents of the business and of
fice buildings are really paid -by tha
customers ' who purchase goods in the
building, by the patrons of the physi
cians, by the clients of the lawyers
nd brokers; in isct, oy toe customers
f all of the tenants, and I might say
that this holds good wherever rent
collected in a business district No
other Income In all the world rests on
broader basis of patronage tested by
the number of people who pay it an-1
the variety of occupations from which
they derive their money to pay it,-
Upon . close investigation. ..we find
that the rental rates paid by the vari
ous lines of business in the . leading
oomme ratal cities of the United State
vary according to the size and import
ance of the city and according; to the
growth of the city. In such cities as
t. Paul. Minneapolis. Kansas ' City,
Omaha, Denver, Los Angeles, Portland,
Mpokans and Seattle, the rental rats
per square foot Is very nearly on
par,' running from fl to 13 per sju
',t
per year for office space, th
most .popular prloe being from $1.35
$l.50,rwhtle the ground floor , loca
tlona brine anywhere from II to I
souordlng to ths . looatlon. . We also
find, in some cases, a wide difference,
In the sates Duld. For Instance
on Second avenue, in Seattle, a cloth
lng store merchant la paying I per
square root per year ror Me location,
and the sidewalk trafflo in front o
his door on any - business day, , from,
say. I odors: to 4 o clock in ths after
noon, is - 3500 people per hour. Just
across ths street Is a druggist who
pays ij.60 per square root oer yesr,
with - the same- amount or sldewaiK
I trafflo. We find that the leaae carry
lng the lower rental ' was - made five
years orlor to ths other.- The drug'
gist's volume of business Is 1162.000
per year; his rental is 115 per cent
of Ms gross receipts. - Ths clothing
merchant's volume of business is IZV&.-
vuu per year, and his rental is ao
per cent or his gross receipts. : ,
Metropolitan Bents Enormous.
"Wo find -In. cities such as New
York. Chicago, Philadelphia, Boston,
Pittsburg. (St. Louis snd Baltimore.
that ths nrios nll . for a-round floor
locations-reaches enormous rates; ons
location in New Tork having the dis
tinction ' or eommandlnsr the nlcnes
rental rate per square foot of "any lo
cation., in the ' world, the rats bslni
$47.50 per square foot per annum, an o
this rate is not too sreat to allow i
concern in , the cigar and tobacco bus
iness to make , a decent living .
'ine 'nudson River Terminal corn-
pay rents- space . in the aubbasement
floors of its building at the rate of (40
per square Toot per year. we have
found numerous cssei where 120, .to
ao ana . per square foot la paid
or around noor locations in isew
Tork and Chicago, while choice' office
locations onng as nign as in to i
per square foot : This shows -. that
Where vast numbers or neorjle con
gregate it requires little effort on the
part of the owners of central business
property to collect large rentals, snd
merchants - and , other people spend a
large part of their lives, In earning
money to pay them. -.. .
to tne owner or business nronertv
the production of rents Is the most im
portant consideration, and keeping the
operating expenses within reasonable
bounds is the nextv Any one with cap
ital can produce .a' business block, but
it requires able and intelligent . man
agement to make It pay."
RESIDEfiCE SITES
01 HIGH GROUflO
E Hi VALUE
US
"Any ons familiar with the trend of
growth of this and other cities of the
United States, saying nothing of the
cities of the old world, will realise that
all ths elevated portions will be sought
for ' residence purposes," savs D. K.
Kessy. ths realtv broker.. "The htirh
spots are Invariably at a premium for
residence locations, presumably because
thay are not suitable for business loca
tions. This attaches nr guarantees ss
excluslveneag to the high portions over
looking the city., It Is only a question
of time when many of the well to do
families now living down on (he level
land on both atdvs of the river will seek
the lh rldgra overlooking the city on
the west aid, from which one has a full
and unobstructed vlw of the prettiest
scenery the world affords.
'rom the tract Adjoining what is
known as ths Old Csatle, at the head of
Seventh street, on the south, or west
ward on 'Portland Ilolshts and Council
Crest, and then asaln from the bxautlful
plateau back of the City park, or north
on Fordliam jialslits at the head of
UUTVjuf 1 1 r , un. tii"., iu , n . . i
an expanae of city .and country land
larger In extent than some of the Kti
ropean kingdoms. Una can trace a snow
capped mountain -chain, with Ita cli
maxes, such aa Mount Hood. Jefferson.
Adams, St. Helens, Three Sisters, Jtaln-
i.
omes do not
give them up, and come dowir ths lilll
to the flat land. It's like owning an au
tomobile, I Ait a man own one and rs!)y
learn hoW they truly annihilate distance,
and that man will never give up tha use , '
Of the horseless carriage unless 'forced
to do so by clrcumauucus ovur which he
has no control.
"One facetloua Individual lis saldi
There la no temptation to talk shout-'
your neighbors If you live on the tils it
ground, for you uun talk ubout thisfwv
scenery,' Borne day mere win pe a ruslt ,
to reserve choice nuuaing sue in in
various tracts on the market which af- '.
ford comprehensive vl'ws, and then
the truth of my ohservatlona today will
be appreciated for their full value."
lea etc., for miles and miles.
''Those who have sightly ho
form of electric llghtln
re suspended shove bo
shaped reflectors of such design that
In a naw
the lamps are
1
suspended
of surh
thelight la thrown against ths celling
and diffused about a room without cast
ing any shadows.
i,, ..!, ,.i..J J,I1'!ILX4L.
4t
JACKS0N&DEER1NG
f 20.0OO Half block on York street
switch; A "pure cream" offering, and
. there is nd better buy in Portland
of Its class, .
f 16,000 6 acres, , adjoining North
Batjk line, on Willamette river, run
ning back to O. R. & N.; an ideal
' location. ; ,, - ..i..-- .
f 16,000 An apartment house pay
ing big returns, close in west side,
f 15,000 That ISOO-acre stock ranch
in Douglas county, Or.; will trade
"" "for Portland property;
f 12.000 A prominent Williams;
j , ave, coroeivDout ay, 'ots, some
income. . ' -
f 12,000 60-foot" Nab Hill lot,
north front with' splendidly built
dwelling that cost $9000, while lot
' ' alone is easily worth $6000; a choic
location for apartments or flats.;
10,000 A splendid home, almost
-. new, full oU choice, Nob Hill lo-
silirr 4 OA. ! ''1..L.. "'.'.""-."'' ".V '
f 5700 One of the prettiest homes
in the city, north and west front;
corner Jot; fcast uthe r--
eaww w w put! i- U'iVUt liVilia
Piedmont," full quarter; $1500 will
handle it. --.a , '
f 5200 Splendid 9 room dwelling,
full lot. bavier st.; $2J00 will han
dle; this is a fine home or will rent
well.,'
f 4800 New dwelling, East 28th;
'room for auto; one-half cash will
handle. ' y
f 4000 Full lot. with 6-roo'm modern
dwelling, splendid new; East Mad
ison and 22d;,half cash will handle.
f3750 Full corner lot and three
- old . houses, corner Water and
Whitaker, good income;, owner
wants money; make, offer.
fl200 15 lots adjoining Gregory
1 Heights; less than half price sur-
rounaing property.
f 1100 Good lot, Portland Heights.
-requires - sowut tilling,- but splendid
.... outiooic ana view,
f 700 Lot on Florida. 50 feeffrom
. Virginia, southern Portland.
f SOO Two lots, block 5, Peninsular
addition; half, cash; near Swift
'' townsite. . -
RIVER HOME Abtiut 5 acres on
; Columbia above . Vancouver, on
North Bank line, station near, boats
: can land at tract; price moderate.
TO TRADE 5 acres irrigated land,
choke location, for small house and
Jot; wil! assume mortgage or pay
cash difference.
10-ACKE ORANGE GROVE, Or--r
''"?v 'CL f" bcarinK, valued
V J300, for good dwelling valued not
-7- more than $7000. i
fcoeeelPiyt..
up'-
-it
.1 "JWi "
f " to '
'.F-o "-Ssfc, (,- t -''xirfj "
. I
if '
w
V
t
Yi B IS HI
-.. . -.. m
v . et-
THESE BEAUTIFUL SISTER ADDITIONS
MEM E TOM
ARE THE CENTER OF ATTRACTION OF ALL THE
DIFFERENT PROPERTIES ON'THE PENINSULA
FROM THE INVESTOR'S , STANDPOINT THEY OUTSHINE ALL
FROM THE HOME BUILDERS STANDPOINT THEY OUTCLASS ALL
A splendid view of the mountains from every lot. They are near good schools, car service unequaled,
both Woodlawn and Vancouver cars run to the property, only 18 minutes from the west side business dis
trict. The great steam whistles of the Swift Packing Plant and Monarch Lumber Company's sawmills
will be plainly heard by the residents living on these sister additions, and still they will not get any of
the bad effects (if any) from these great hives of industry. '
The immense traffic between Vancouver and Portland will come over Union avenue, which lies be
tween these sister additions, No doubt but there will be a great advance on present prices of property
wheh near that great business avenue. v , ,
DON'T PUT OFF UNTIL TOMORROW
NOW IS THE ACCEPTED TIME
Put a few dollars per month' in these beautiful lots, and you are on the road to prosperity.
. HUSBAND, TALK IT OVER WITH YOUR WIFE and see if you had not best begin to puf aside
something for a rainy day of old age. 1 , --
COME IN AND TALK WITH US
7 "BM0MG-STEEILE CO.
Phones IVf Aln l7439 A 1743
HO Second Street
ILOTTS
I Will Be Worth 01000 en Portlanci i
. - r t,i.-.i i i...i ,:u k. Kfn riAA Dnii..j iat(,'4 .k ,;ii m ai... t
in ait iivaiuiy in ei.wiunitu stic ivv,vuv tut f vi usuu tn tviviuvt my nrm ucucr,
Natural conditions, locations, etc.,' will do that without boosting. ' When you take into' con-jr
sideration that Pprtland is the outlet to, a scope, ot country equal to all the New England
states, Iowa, Pennsylvania and Missouri;1 and that it i all down hill to'Portland from this im-:
j mense icrriiory, .aiso inai u costs tuuu more to pun a, train 01 cars over me mountains to ce-'.
T attle than , to drop i dovvn to Portland, and that water transportation is only half that of rail,
T and the Columbia .river is now navigable as far as Lewiston, we believe m 'Portland, and '
tso po you. jlhis.is, common . kftowledge everybody knows this, ; ,,r
- . .. , l . . .. I S , ' " " K J 1 " j '
Z w: "iiWe are .having-trouble in - handling:, eastside traffic on (account of 'the bridges t now.
X What will "600,000 do ta them ? Can you imagine eight of ten bridges, at ; that time, "or
. subway Nd--the expense: is too : great . Reason', iu the same iway as you reason fort-
!land becoming a great city. Natural conditions -will prevail.'; We must either movie the west;
i side business section to theeastide or hiOye sqme of the east Side residences "to the. beau-f
tiful hills on the west side. . The tide has already, started to the west side hundreds of people ;
are paying rent on the west side who own homes across jhe; river, - W hy t ' . f , . . t t
We believe so strongly, in west side property that, we recently purchased the unsold por-
tion of old WEST. PORTLAND PARK, which lies just outside the five-mile . circle fo the
southwest rcloser than-Montavilla,; University, Park and .other ' additions ; where '. lots' sell at t
.$300 and up.' '. . ' ' '. "; ,v -,'v I' z
Tust to find a few live ones, we will sell 200 lots in this beautiful addition at SSO each .X
' 10 down and $5 per month. We positively guarantee these lots to be selling at from $100 f
,p within 90 days. Do you realize that you cannot buy a lot in Estacada at this price?
Do Yomt Owm TEiMEdmffl
Z Will you act now and call at our office and make reservation -today, or wtllsyou in after t
veara iiav Hik riir nM inhahi'rantu WHO CAN RKMEMRER WHkM . MrtTIMT Hflnn
Z WAS A HOLE IN THE GROUND and acreage on Washington' street was sellinr at .$10) :
l could nave Dougnc. west rortiana iots at 5jou, ana today they are wortlraousands ?
DON'T ask your' landlord or, other real estate men for advice; it's not natural to expect
them to say, ''Go to West Portland -Park." Oh, nolr THEY would not make any money if
YOU bought of bs. . - , ' ' ' '
:
:
303 TO 313 ABINGTON BUILDING
Ask us about other propertits
JACKSON &DEERING
, 24 STARK STREET
rhones Main 345. AM57
, r - ' i
$3000
v f rm ti"u rm fjeflif ate
er I'.irr., t-' 1 . Ir-m
r '-rr. n ,f kr-a euwo.
i . f ; : k 3i . ec
Homeseekei:s, AMeMioii
h- 1 NORTHWEST- TIMBER CO.
520 LUMBER EXCHANGE BUILDING PHONE MAIN 5789
1 H. Banfield, President; H. Viereck Jr Manager. ..
CAPITAL $100,000 "... :
Real Estate and Buslnesj Financed Timber and Farm Lands,
" One billion feet of timber, spruce, hemlock, fir, silver pine1 and tamarack. Eay
logging to navigation and railroad. We alsowill locateVou on homesteads and relinquish
ments in all parts of Oregon and Washington. . Bank "and commercial references.
We do a general brokerage business, buying and selling farms, city , homes and
timber lands, placing investments for eastern parties, securing profitable business open
ings for those looking for new locations, and loaning money. Mr. 11. Viereck Jc. has
. been in business in this city for the past 25 years, and is especially Qualified to secure .
the very c!oet and most desirable business bargains. . . v , ' "
His knowledge of the city and' tatemakcsjiisadyice to prospective investor of inr-estimable-alue;
IleremVpersonalattrntion to the placing of all eastern capital,,'
and the most conservative propositions only are considered in investing money placed
in the hands Tf the firm for. remunerative returnsJ Any purchases or sales effected
through this office are guaranteed by us to be -strictly as represented, and any loss
accruing to an invetor"throah misrepresentation :is ihus made impossible. ...
. Truly yours," " . - -
Northwest Timber Co.
PRICES fiWMCMlPSi 1
. Notice Is Given That Prirts of Metzger Acre Tracts Will Be Advanced on April 1 -
Only 10 Days More to Secure These
Tractsat: Present Low Prices
-METZQER-
AQR E - TRACTS '
Are the best investment yoa can make. ;v If jrou are wise, you will buy a few before. the i
1. d vancei-Visit Metzger today and make selections. ' Twenty-nine minutes' ride on the ;
- Oregon Electric will land you on the tract. Our agents are there jdailyv Remember, Jhere W
is only one more Sunday before the advance. If you cannot get 6ut through the; week, GO r
f OUT TODAY. Something may prevent you from going next Sunday.
PRICES TILL MARCH 31 ONLY
- " $200 UP PER ACRE -
- - - . - . .. , . ..'
: RF.MEMBER-THE ADVANCE APRIL4 AND ACT-QUICKLY: .
HERMAN METZGER, Owner
N
228 AND 22S FRONT STREET
Portland' Phones Main 274, A-1374
Branch Phone Main
A