Multifamily Developers Find Less Space for Parking. What it Might Mean for Pricing.
January 27, 2020 | Bendix Anderson | National Real Estate Investor
Apartment developers on new projects are often building less parking at their projects than the old standard of two spaces per apartment.
Developers can often save millions of dollars if they build fewer parking spaces. But they also risk losing potential residents if they fail to build enough parking spaces to satisfy their residents. The stakes are high. Any lost income from losing tenants could into the eventual sale price. Meanwhile, a development with too much parking will have a lower yield than it could have, because the developers built empty parking spaces that don’t earn any money.
“We see the parking demand only further decreasing in the future,” says Michael Smith, design director for Humphreys & Partners Architects. “With things like Uber’s air taxis on the near horizon, the demand for cars will be even further reduced.”
