Parking Garages Buck Economic Recession

by CoyDavidson on November 11, 2009

Colliers ninth annual North American Parking Rate Survey indicates even in the face of economic hardship by many, parking garage owners and operators have managed to hold rates at last year’s levels. Despite a loss of six million jobs and a significantly more challenging business environment, few markets have seen a significant pullback in parking rates. Daily and monthly parking rates largely held steady over the past twelve months (ending June) with daily parking charges up 1.2% while monthly rates fell 0.9% Supporting parking rates is the continued imbalance between supply and demand even in the current economic environment.  Contributing to the modest drop in monthly parking rates has been the substantial decline in office occupancies which places downward pressure on monthly parking rates. Daily rates, which are more of a function of the general economy and consumer spending, show demand or infrequent parkng remains remarkably strong and most likely reflects long-held commuting patterns seen in most parts of North America. While higher fuel prices have reduced total miles driven, demand for parking looks to be more price insensitive, allowing parking garage owners and operators to charge more. With the economy aniticipated to remain sluggish, and still a weak labor market, parking rates are expected to show little change in the coming year, but when the economy recovers, rising parking rates are almost sure to return.

One trend we are seeing is that building owners that control their parking garages are offering increased terms of abated parking charges, as an additional concession in leasing transactions, in order to attract and retain tenants.

  • The National average montly median parking rate is $154.23
  • Midtown Manhattan recorded the highest average monthly rate of $550.00
  • Average monthly rates in Downtown Houston are $140.00, slightly below the national average

View and download the full report: Colliers North American Parking Rate Survey 2009

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