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1953-54 Theatre Catalog, 11th Edition, Page 40 (6)

1953-54 Theatre Catalog, 11th Edition
1953-54 Theatre Catalog
1953-54 Theatre Catalog, 11th Edition, Page 40
Page 40


1953-54 Theatre Catalog, 11th Edition, Page 40

Current Factors Affecting Theatre Realty

A Survey of how Home Television and other Factors Have Influenced Theatre Real Estate Values in New York City

New inventions throughout the centuries have affected dilferent people in diderent ways and brought about radical changes in manls way of life. Just as the automobile has produced a revolution in peoplels shopping habits, currently being felt in the realty world by the mushrooming of large suburban shopping centers challenging the established downtown districts, so television, the miracle of the 20th century, was bound to leave its imprint upon the living habits of urban dwellers and, consequently, to affect the value of properties in which they live, work and amuse themselves.

In a broad way, there have been a number of effects which realty has felt from these changed living habits. But most particularly, television has been in direct competition with the moving picture theatres, important tenants of many New York properties and it is this class of real estate that is most affected.

Theatres Sold. Now

For Sale or Vacant

From 1946 to 1951 inclusive there Were 105 bona fide sales of theatre realty in New York City. A few were sold at slightly more than their assessed value, but the majority were sold for less. The following list shows the number of sales

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BRIEF: In the last five years . . . since home television has become such an active competitor for the publicis entertainment and amusement time . . . TV has been accused of being the primary cause for a large number of theatre closings.

With seven channels to select from . . . the citizens of New York City have probably had more opportunities to view harne TV than any other group in the nation . . . It follows . . . therefore . . . that here would be the place where television would have its greatest influence on motion picture theatres . . . This survey . . which was made by Real Estate Forum . . . a leading real estate trade publication . . . oHers some specific examples of what TV has done to thentre real estate values in the natiouis largest city. >

Although this survey was made before current three-dimensional developments brought about a surge of interest aml attendance it is heartening to see that when the TV threat was at its peak . . . the situation in theatre closings was never as near the disaster level that so nmny . . . both in and out of the industry . . . were talking about . . . Although inroads have been made the picture is by no means hopeless.

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each year and the relation of assessed value to sales price:

Assessed Number Value To Of Sales Sales Price 1946 . . . . . . . . . 26 106%

1947 . . . . . . . . . 19 104%

1948 . . . . . . . . . 15 88%

1949 . . . . . . . . . 14 129%

1951) . . . . . . . . . 13 126%

1951 -. . . . . . . .. 18 - 108%

A check with many realty othces throughout the city, during this survey, revealed a total of only 43 motion picture theatre properties on the market for sale. They include both operating and closed theatres. Many of the operating theatres are being disposed of by the chains in accordance with the HConsent Decree." They are distributed among the

Iboroughs as follows:

Brooklyn . i . . . . . . . . . . . . . . 17

Bronx . . . . . . . . . . . . . . . . . . . 11

Manhattan . . . . . . . . . . . . . . . 11

Queens . . . . . . . . . . . . . . . . . . 4

TOTAL . . . . . . . . . . . . . . . 43

Although since 1946-7 there have been 92 theatres which are no longer used

for theatrical purposes. About half of these are being used for other purposes, but 49 are still entirely vacant. The tabulation by borough follows:

Manhattan . . . . . . . . . . . . . . 6

Brooklyn . . . . . . . . . . . . . . . . 22

Bronx . . . . . . . . . . . . . . . . . . . 10

Queens . . . . . . . . . . . . . . . . . . 7

Richmond . . . . . . .I . . . . . . . . . 4

TOTAL . . . . . . . . . . . . . . . 49

Closed motion picture theatres definitely hurt neighborhood realty values aparticularly retail shops on the same block. Shoppers and passers-by are materially reduced and less buying follows. Inquiries in the immediate vicinity of three closed movie houses reveal retailers' opinions that their business declined from 20 per cent to as much as 60 per cent.

Restaurants and ice cream parlors miss the former itafter theatre crowd." Other shops find feWer customers looking at their show windows. These conditions will be refiected in rentals and real estate values.

GOOD PICTURE PRODUCT draws good boxolfico even in television saturated New York City.



THEATRE CATALOG 1953-54

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1953-54 Theatre Catalog, 11th Edition, Page 40