XN000022-1974-04-03 — Page 5

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MEDNESDAY, APRIL 3, 1974

HOWEVER, WITH OVER SEVEN MILLION SQUARE FEET COMING UP IN

1975 AND 1976 WE SEEM TO BE MOVING TOWARDS A POSITION OF OVER-

SUPPLY, WHICH MUST, IN DUE COURSE, AFFECT THE PRESENT TREND OF

OFFICE RENTS, MR. FRY SAYS.

FLATTED FACTORIES

THE TOTAL OF 3.27 MILLION SQUARE FEET COMPLETED DURING 1973

WAS ALSO LESS THAN THAT EXPECTED BUT NEVERTHELESS THERE STILL, AT

THE END OF THE YEAR, WAS SOME 2-1/4 MILLION SQUARE FEET OF SPACE

VACANT.

THE AMOUNT TAKEN UP DURING THE YEAR AVERAGED SOME 350,000

SQUARE FEET PER MONTH WHICH IS ONLY A LITTLE OVER HALF THE AVERAGE

FOR 1972 C640,000 SQUARE FEET).

DURING 1974 SOME 4.2 MILLION SQUARE FEET IS EXPECTED TO BE

COMPLETED AND THIS, TOGETHER WITH WHAT IS NOW VACANT SHOULD BE

AMPLE TO MEET THE IMMEDIATE FUTURE DEMAND. A FURTHER FIVE MILLION

OR SO SQUARE FEET IS EXPECTED TO BE COMPLETED IN EACH OF THE

YEARS 1975 AND 1976.

THE DEPARTMENT'S RENTAL INDEX FOR FACTORIES ADVANCED BY ONLY

ABOUT SEVEN PER CENT OVER THAT FOR 1973, AND A SEPARATE ANALYSIS

OF REPORTED NEW LETTINGS IN 1973 INDICATES THAT NEW RENTALS ARE

ONLY MARGINALLY HIGHER THAN THOSE PAID BY SITTING TENANTS.

SOME

DOWNTURN IN RENTS FOR. FACTORY SPACE ALSO SEEMS LIKELY, ACCORDING

TO THE COMMISSIONER.

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