Parking garage allocation an important management decision for condos
Depending on where it is located and how many spaces it has, a condo parking garage can “bring a lot of coin into a building annually” to quote an article in The Cooperator New York recently. The article talks about the choices to make around managing parking garage allocation and facilities for co-op and condo buildings in larger centers. Not only is it a matter of deciding to manage it themselves or outsource it, but it’s also an issue of how to allocate the spaces to the residents of the building. Each situation is different and the demand for parking around the building has a huge impact on those decisions as well as the potential revenue.
Proper management is essential because some parking garages can be significant sources of revenue, with the article suggesting a “range from thousands to millions, depending upon the facility’s size and location.” A Financial Post article in 2015 spoke of the value of parking spaces rising faster than condo prices during a somewhat down market in Toronto. They cite parking spots sold in 2007 at $27,500 and $35,000 being sold eight years later for over $51,000 and $69,000. More recently, an article on dnainfo.com reported on a parking spot on Union Street in Brooklyn being priced at $300,000 (plus $240 monthly maintenance and $51 monthly taxes). While it seems like a high price tag, the article talks about the view of the parking spot as an asset and cites the $80,000 price tag on a spot in the same garage only 4 years ago.
Not all parking garages have the potential to as a $300,000 price point (or a $27,500 one for that matter). But they all have value which needs to be appropriately managed. For many condos, the spaces are available for residents and there is little demand for them beyond that. Other buildings might look at a shared parking model to optimize parking garage allocation. In a previous blog, we provided some examples of how profits can be uncovered with shared parking for lots or garages, even in less high demand scenarios. Many organizations use a virtual lot system to manage and track their parking allocations and the key is having a parking management system that makes that a simple task.
Read the full article in The Cooperator New York here.