Opinion
March 28, 1950.
Present — Peck, P.J., Glennon, Dore, Cohn and Callahan, JJ.;
After considering all the relevant factors, including the nature of the improvement constituting the so-called annex, we conclude that an overall return of 5 1/2% on the assessed value would be a fair and reasonable return. Adding to the sum so calculated, the taxes and expenses of operation, and deducting other income, we find that approximately $665,000 is necessary to provide a reasonable return. Giving due consideration to all the circumstances involved, it would seem that the fair rental value of all the space occupied by the petitioner bank was approximately $390,000 a year, which would mean that $275,000 should be procured from the remainder of the premises in order to supply a fair return. Taking into consideration the amount and character of the tenant's space and comparing it to the total rentable area, we find that this tenant should supply 5% of the required rental income of $275,000. On the basis of these computations we have determined that the present tenant's rent should be fixed at $13,750 per annum which sum we find to be a reasonable rent. Order modified in accordance with the above and, as so modified, affirmed, with costs to the appellants.
I agree with the findings of the majority save that I am of the view that the fair rental value of all of the space occupied by the petitioner bank was $395,000 a year, which would mean that $270,000 should be produced from the remainder of the premises in order to supply a fair return. Since the rents received from that part of the building not occupied by petitioner are in excess of the amount required to produce a reasonable return, no increase in the appellants' rent is warranted. Settle order on notice.