This section is from the book "Practical Real Estate Methods For Broker, Operator & Owner", by Thirty Experts. Also available from Amazon: Practical Real Estate Methods for Broker, Operator, Owner.
Corners are always more valuable than interior lots, and the relative value of a corner to an interior lot depends upon the value of the two streets on which the corner lot fronts. The greatest increase for a corner lot is at the intersection of two streets of equal value, and the increase for the corner diminishes from this high point to a point where one of the intersecting streets may be regarded as adding no value in excess of the value of an easement of light and air. Generally, it will be found that the increment due to a corner position extends 100 feet in each direction from the corner. The extent of the corner influence and the ratio of increase should be determined in view of the conditions in the particular city from the best evidence obtainable, and appropriate basic tables or scales should be prepared for the guidance of the assessors. It will probably be found that these scales vary but slightly in different cities, probably no more than in different parts of the same city. When the scale is once established and popularized, it not only states a present fact, but to a large extent determines future values, because land is bought and sold on the basis of value established by the scale. This fact is shown by the experience of New York, where for many years the Hoffman Rule has been in common use for determining the relation of the value of part of a lot to a whole lot. Although the Hoffman Rule is crude, it has undoubtedly a large influence in determining the actual price for short lots.
What is it that makes a corner lot worth any more than an inside lot?
1st. Superior situation with reference to light and air.
2nd. Greater frontage for purpose of display and contiguity to passing crowds or possible buyers.
3rd. Objective prominence for advertising advantage.
These are great considerations.
The corner lot shows a frontage of 125 feet, as against only 25 feet for an inside lot. It has a space of between 50 and 100 feet between it and any other building on this frontage and the opportunity to display goods is very much more extended, while it projects into the thoroughfare and commands attention.