With dwindling supply, parking prices go up

New York /
Jul.July 27, 2010 04:30 PM

Midtown and Downtown Manhattan, two of the largest central business
districts in the nation, topped this year’s Colliers International 10th
annual parking rate survey of the most expensive cities in North
America for parking.

Midtown Manhattan’s monthly median price for parking a full-size
automobile reached $538 (not including taxes), while Downtown was not
far behind at $529, according to the survey, which spans June 2009 to
June 2010. Both were more than three times the national average, though their daily parking rates have declined for the same period.

During the years of residential and hospitality development
from 2005 through 2008 many of the city’s garages were sold, reducing
the number of parking spaces in Manhattan and the outer boroughs.

A case in point is the 34-story InterContinental New York Times Square,
which opened earlier this month, and occupies a former parking lot at
44th Street and Eighth Avenue. And at least six hotels are located on
former parking garages and lots between West 33rd and West 40th
streets, and Fifth and Ninth avenues, including the Strand hotel at 33
West 37th Street.

“Supply and demand is a major factor in the stability of parking rates
in North America,” said Ross Moore, executive vice president and chief
economist for Colliers in the U.S. Parking availability in only four of
the 56 central business districts surveyed were described as “abundant”
with the remainder being “fair” or “limited.”

That situation is not expected to change much, with only six new
garages containing less than 4,000 spaces to be added in the next two
years in the country.

But compared to cities in other countries, New York City’s parking rates are a relative bargain.

Globally, London was the most expensive place in the world to park,
with an astronomical $933 median price for a monthly spot, according to
the Colliers survey. In Asia, Hong Kong and Tokyo both topped New
York’s median monthly cost for a parking spot at $744.72 and $654,
respectively. Sydney, Australia topped Manhattan with a median price of
$591.28 per month.

Michael Stoler is a columnist for The Real Deal and host of
real estate programs “The Stoler Report” and “Building New York” on
CUNY TV and on WEGTV in East Hampton. His radio show, “The Michael
Stoler Real Estate Report,” airs on 1010 WINS on Saturdays and Sundays.
Stoler is a director at Madison Realty Capital as well as an adjunct
professor at NYU Real Estate Institute, and a former contributing
editor and columnist for the New York Sun.

 

Related Articles

arrow_forward_ios
1540 Broadway and 31 West 52nd Street (Google Maps, Hines)
Manhattan office availability hits record high…again
Manhattan office availability hits record high…again
Colliers International CEO Jay Hennick (Colliers, iStock)
Colliers’ acquisitions help boost company’s Q1 revenue
Colliers’ acquisitions help boost company’s Q1 revenue
345 Park Avenue and 787 Eleventh Avenue (Photos via Google Maps and Rafael Viñoly)
Manhattan office availability hits all-time high in Q1
Manhattan office availability hits all-time high in Q1
New York Times tower at 620 Eighth Avenue and Park Avenue Plaza at 55 East 52nd Street (Photos via Wikipedia Commons, Google Maps)
That empty feeling: Manhattan office availability at record-worst 15.5%
That empty feeling: Manhattan office availability at record-worst 15.5%
Colliers CEO Jay Hennick. (Getty, Colliers)
Colliers leasing drops 26% in Q4 but revenue stays steady
Colliers leasing drops 26% in Q4 but revenue stays steady
1345 Sixth Avenue, 11 Madison Avenue top the list of January deals. (Sapir, WikiMedia)
Manhattan office availability hits record-high 14.9%
Manhattan office availability hits record-high 14.9%
One Park Avenue, Empire State Building and 5 Manhattan West (Google Maps, Wikipedia Commons)
Manhattan office availability hits highest rate since 2004
Manhattan office availability hits highest rate since 2004
(iStock)
Manhattan office leasing decline is double that of Great Recession
Manhattan office leasing decline is double that of Great Recession
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...