This is the kind of news you want to read if you are a parking investor. It confirms once again that parking is a scarce resource and when developers are hungry for land it's the first place they turn to fill the need. Here are two recent articles that highlight that this trend is not going anywhere in the near future:
Sayonara Parking Garage, Hello Ubiquitous Luxury Housing
April 9, 2014, by Zoe Rosenberg
It seems the Post has also caught onto the trend that parking lot parcels are being snatched up and converted to luxury condos. This time, talk centers around an Upper West Side garage on West 77th Street between Broadway and Amsterdam Avenue. The for-sale lot is being marketed as a residential teardown that can be expanded from its current 7,700-square-feet to 77,000-square-feet. The Post expects the lot will fetch in the ballpark of $61 million, or $800 per square-foot, thanks to its neighbor, the luxury rental development The Larstrand.
The garage at 219-233 West 77th Street is not the only lot to grace the market with development aspirations. There have been quite a few before it; a few of which we mapped. The Post notes that Finance Department statistics declare a loss of five parking garages in Manhattan in the last two tax years. In the past, Brooklyn has seen a loss of 40 garages, the Bronx has given up 30 garages, and Staten Island has lost three garages. The trend extends most heavily in Queens, where 44 garages have been snatched up for development in years past. The trend accompanies a privatization of parking spaces—found increasingly under new luxury rental and condo buildings—making it even more of a challenge and a privilege to have and park a car in the city.
Upper West Side Garage to Turn into Cushy Condos
April 8, 2014, By Lois Weiss
Another Manhattan garage building will bite the dust to be reincarnated as a place to park people.
The Upper West Side garage at 219-223 W. 77th St. is on a plot of 7,700 square feet. Sources said it is being marketed as a residential tear-down that can be redeveloped to 77,000 square feet.
Located on the north side of the street between Broadway and Amsterdam Avenue, and next to the new 20-story Larstrand rental, it would not surprise us to see bids rising to or above $800 per square foot — more than $61 million.
Calls to the Avison Young marketing team of Vincent Carrega, Neil Helman, Jon Epstein and Charles Kingsley were not returned.
Like other brokerages, this group has been active in the garage-sale market. Finance Department statistics show Manhattan had 865 garages in the tax year 2012-2013, but 860 in 2013-2014 — a loss of five garages and an untold number of spaces.
It also seems more are being marketed every day.
Brooklyn, the land of the hipster bikester, is losing even more — so far, 40 have bitten the dust.
Thirty are gone in the Bronx and three in Staten Island.
Queens is the biggest auto-space loser, however, as 44 went down for the count.
The good news is that the city’s tax rolls will increase as expensive luxury apartments take the place of these lower-valued garages. The bad news is that finding a place to park a car is getting a lot harder.
While a few parking spots have already been sold as a condo development perk, we predict that some entrepreneur will buy or take their current garage building, split it up, and sell all the spaces as car condos.
Parking Investing Blog
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International Parking Institute
Donald Shoup on Parking
The Valet Spot
We Wrote the Book on Parking Investing