The rent paid depends on the location of the land. Highest rents and consequently greatest values are found in those places where the most lucrative businesses are conducted, and values grade down to the places where a great deal of space produces only a small return. In valuing improved property, the land and the building must be considered separately. It costs no more to erect a building in a good location than in a poor one.

The following list shows the relative value of land based on location and use.

a. Financial centers such as Wall Street and the adjoining streets in New York City.

b. High-class retail business. In places where there is no financial center, this is usually the most valuable land.

c. High-class residential property, used by people who will pay high prices for exclusive surroundings.

d. Land used for hotels, the better residential apartments, and office buildings outside the financial district.

e. Wholesale business districts. Often the best land for wholesale business is that which is next to the retail district.

f. Land useful for ordinary tenement purposes, from the moderately priced apartment down to the cheapest type of flat or tenement; also land used for small residences, the latter being usually less valuable than the land for tenements.

g. Land for suburban or detached residences, h. Land for factory purposes.

i. Farm lands.

j. Timber lands.

k. Grazing land and waste land.