What is the value of a parking space?
There are several ways to value a parking space. Depending on the project type, location, and users, the value of a parking space depends on a number of factors:
- Current and future parking adequacy vs. supply and demand
- Availability of real estate
- Land acquisition costs
- Market costs for constructing surface or structured parking
- Development and revitalization of the area
- Using parking as a catalyst for development
- Sharing parking between land uses and “rightsizing” parking supply
For example, in an area with a large parking supply and plenty of land available, one would value the parking space based on the amount of market revenue that it can generate. However, if the parking supply is low, and the campus, neighborhood, or development does not have a large amount of unused land, the cost could be valued based either on its revenue-generating ability, or on the cost to build structured parking. Furthermore, if valued based on the cost to construct, factors such as expenses, debt service, and land costs play a significant role as well.
*Federal, State, and Local codes govern most of these requirements and should be thoroughly investigated. Data presented herein should be considered guidelines only. For more specific information and assistance with implementation of these guidelines, please contact THA Consulting, Inc. via email at info@tha-consulting.com
