Want to Save Some Money? Park Your Car in Memphis
October, 2006Parking costs have increased nationwide for the third year in a row, mirroring rising demand for office space and adding stress for commuters in the U.S., Canada and around the world, according to the sixth annual North American Parking Rate survey from Colliers International, a leading global real estate services firm.
With 49 U.S. markets and 10 Canadian markets under study, Colliers’ survey shows that over the past 12 months, the cost of parking has increased by 4.4% (monthly rates) in response to an improved business climate and continued robust retail spending. Daily rates showed the most significant increase – consistent with strong retail sales and a buoyant economy. Even if the economy slows, Colliers predicts parking rates will continue to rise over the next 12-month period.
Indicative of this overall upward trend, midtown Manhattan has broken well through the $500 per month barrier for a monthly parking spot. However, comparatively, this is quite reasonable when considering typical monthly parking rates in cities such as London, Tokyo and Hong Kong.
In the U.S., rates for unreserved parking spaces rose 4.4% during the past 12 months. The median rate for unreserved parking now averages $153.19 per month. Unreserved rates range from a high of $887.80 in midtown Manhattan to a low of $20 in Memphis, TN. Reserved parking rates increased marginally less than unreserved rates during the same 12-month period, rising 3.8%. The median rate for reserved parking now averages $180.68. Daily parking rates, however, posted a sizable gain of 10.1% the median rate now averages $15.28.
Despite these price increases, 70.3% of cities surveyed described their parking supply as “fair” (garages are 60% to 80% full Monday through Friday and on weekends during special events), while 22.9% of respondents indicated their parking supply was “limited” (garages usually completely full Monday through Friday and on weekends during special events). Only 6.3% considered their city’s parking supply to be “abundant” (garages consistently less than 60% full). Further, 18.3% of U.S. garages reported a waiting list with an average wait of 3.4 months.
On the supply side, in the 49 U.S. markets Colliers surveyed, 63 parking garages are expected to be added over the next 24 months, although 27% will occur in the Washington, DC, area alone.
In Canada, rates for unreserved parking spaces posted marked gains during the past 12 months, rising 14.1%. The median rate for unreserved parking now averages C$194.51 per month. Canadian daily parking rates increased 7.6% during the same 12-month period, and the median rate for daily parking now averages C$13.25.
Colliers International’s survey was conducted in June and covered a broad selection of 59 metropolitan areas in North America, as well as select cities in Europe and Asia. For the complete survey, log on to http://www.colliers.com/Markets/USA/News/2006ParkingRelease.