Why investors should scramble to buy parking garages north of 60th Street

New fees expected to be introduced in 2023 will decrease traffic in the city

TRD New York /
Apr.April 12, 2019 09:30 AM
A parking garage in Manhattan (Credit: Wikipedia)

A parking garage in Manhattan (Credit: Wikipedia)

It’s not just drivers from the suburbs that will be smarting from the new congestion pricing plan for Manhattan. Parking garage owners in the prime office districts will also be hit hard.

While the number of parking garages has increased across Manhattan, the number in Midtown and Downtown have dropped 25 percent in the past decade to 330 lots, according to The Wall Street Journal. Congestion fees are expected to be introduced in 2021, which will charge motorists around $11.50 to enter Manhattan below 60th Street.

The Journal reported that some Manhattan garage owners have filed plans to demolish and convert to retail or apartment buildings in the past five years.

Calls for congestion pricing have been around for years, and became more concrete after London introduced fees to drive in its central district in 2002

The Real Estate Board of New York has supported congestion pricing, leaving parking garage landlords to fend for themselves. The industry has already reported declining revenues thanks to the rise of ride-hailing firms Lyft and Uber.

But congestion pricing could have the opposite effect for parking garages located just outside of the fee zone, where drivers are more likely to park and then walk to work. The number of garages for all of Manhattan has in fact increased, due to more private garages in apartment buildings.

“Right now I would love to buy a garage just north of 60th Street,” Bob Knakal, the New York City chair of investment sales at JLL, told the Journal. [WSJ] — David Jeans


Related Articles

arrow_forward_ios
John Banks

High expectations: A look at John Banks’ 4 years at REBNY

John Banks

John Banks to step down as REBNY president

REBNY Awards

Newmark Knight Frank wins REBNY retail award for Alamo Drafthouse deal in FiDi

Softbank CEO Masayoshi Son (Credit: Getty Images)

SoftBank’s $3B payout to WeWork’s investors is delayed

John Legere (Credit: Getty Images)

WeWork reportedly in talks to hire T-Mobile exec as CEO

From left: Heather Domi, Jeremy Stein, Toni Haber, Leonard Steinberg and Cathy Taub (Credit: NYRAC)

Fast-growing agent group has money, members and an agenda

BCTC's Gary LabBarbera and REBNY's Jim Whelan

REBNY, Building Trades join forces on development, policy

REBNY’s Real Estate Broker Confidence Index was 5.84 out of 10 for the third quarter of 2019, down 12 percent from the prior quarter but up 22 percent from last year’s all-time low. (Credit: iStock)

Broker confidence declines for another quarter: REBNY

arrow_forward_ios