How Hidden Parking Minimums Affect the Costs of Development2 min read
Hidden parking minimums, which are often well above the city requirements, drive up developmental costs. Read to know more.
Despite cities considering slashing parking requirements to promote walkable and cycle-friendly environments, banks are still compelling developers to build large parking decks.
Banks almost typically ask developers to provide a minimum number of parking places – frequently much over the limitations set by the municipal –in exchange for funding an apartment complex, according to developers.
Due to these hidden parking minimums demands, building apartments in metropolitan areas become more expensive which, in turn, compels developers to increase rents.
Parking requirements are the main obstacle to the development of affordable housing, especially when you consider the slim margins and the high pressure to minimize construction costs.
As you can expect, constructing a parking deck costs a lot, but the monthly parking fees that tenants are prepared to pay do not even begin to cover the construction costs.
Before financing a project, banks examine parking as well as other building aspects because they want to be sure they’re making a wise investment. A place that is hard to park, especially if this reputation sticks, can significantly affect its attractiveness and, by extension, the bank’s ROI on the investment.
However, many market-rate housing developers feel that parking minimums are not as big of an issue as they are sometimes made out to be.
They also feel that banks read the markets more appropriately and, sometimes, are right to demand minimum parking.
That said, there are several state authorities open to funding affordable housing projects and reconsidering the amount of parking space required for urban developments. These authorities believe that thanks to the advent and popularity of cab services like GrubHub and Uber, car ownership is not as important for young renters as it used to be.Also Read: Here’s how Relaxed Parking Minimums in Miami Are Solving Real Estate Dilemmas
Optimizing Existing Parking
Optimizing the usage of existing parking spots in residential and commercial areas is just as important as figuring out parking minimums for construction projects that are yet to make it out of the blueprints.
With more people than ever preferring to park using apps, operators are under pressure to offer digital parking solutions to their customers. With Get My Parking, you can automate and digitize your parking lot without having to invest in expensive brand-new equipment – our retrofit technology integrates seamlessly with your existing solutions to set up lightning-fast payment and access in your location via a custom-branded parking app.
Check out our website, or contact us at email@example.com to know more.