Parking garage allocations for condos
Depending on location and size, 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. First of all, it is a matter of deciding to manage it themselves or outsource it. It’s also an issue of how to allocate the spaces to the residents of the building. Each situation is different. The demand for parking around the building has a significant impact on those decisions as well as the potential revenue.
Management & Revenue
Proper management is essential as some parking garages can be significant sources of revenue. The article suggests a “range from thousands to millions, depending on the facility’s size and location.” A Financial Post article in 2015 spoke of the value of parking spaces rising faster than condo prices. This is 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. The price for a space in Brooklyn was 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 considered as an asset. It also cited the $80,000 price tag on a spot in the same garage only four years ago.
Not all parking garages have the potential to as a $300,000 price point (or a $27,500 one for that matter). Managing spaces appropriately, regardless of their value is essential. For many condos, the spaces are available for residents. 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 examples of how to uncover profits with shared parking for lots or garages. This is even in less high demand scenarios. Many organizations use a virtual lot system to manage and track their parking allocations. The key is having a parking management system that makes that a simple task.
Read the full article in The Cooperator New York here.
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