Tuesday, August 2, 2011

What Determines Parking Rates Globally

Parking Rates Broadly Up - Worldwide (4 page pdf, Ross J. Moore Chief Economist | USA, Colliers, CBD Parking Rates, 2011)

Also discussed here: Do CBD parking prices in your city look expensive when compared with alternative uses of that space? (Reinventing Parking, Aug. 30, 2010)

And here: Parking Rates Worldwide (Urban Demographics, Jul. 22, 2011)

And here: Parking charges and commercial rents – are they related (The SKM Colin Buchanan Blog, Oct. 13, 2010)

The focus of today’s review is an update on a comparison of central business district (CBD) parking rates around the world. While one xpects them to correlate well with real estate prices, one finds considerable differences, not only within a city but between cities. Parking rates are known to also impact on the degree of traffic congestion with higher rates favouring less congestion as a rule along with reduced vehicle emissions in downtown urban areas.





Key Quotes:

“One possible way to look at the question of which prices are 'too high' or 'too low' is to compare the parking prices with the rents for other uses of space (both measured per square meter per month)”

“parking is a use of real estate..Space that is not used for parking could be used for some other real-estate use”

“We have cities near the diagonal line where CBD parking rents per square metre are comparable with Grade A office rents.. At the other extreme, Delhi and Mumbai in the upper left part of the graph have expensive office space but extremely cheap parking.. Jakarta and Bangalore at the bottom left have quite cheap office space and even cheaper parking”

Hong Kong and Tokyo are also intriguing. Their CBD parking prices are among the highest in the world.… such parking prices are not surprising given their expensive CBD real-estate generally”

“It is notable how much car parking charges vary even within a small city centre area so while there is no guarantee that the data used is representative of average car parking charges in each city centre”
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