What Recession? Parking Garages Buck the Economic Downturn

According to Colliers International’s 2009 Parking Rate Survey, Garages Manage to Hold Rates Steady Amid Economic Woes

BOSTON, June 24 /PRNewswire/ — Colliers International, a leading real estate services firm, today released its ninth-annual North American Parking Rate Survey, which now tracks 64 North American markets. The survey indicates that despite economic hardship, U.S. parking garage owners and operators have managed to hold rates at last year’s levels. Indeed, despite a loss of six million jobs and a significantly more challenging business environment, few markets have seen a meaningful pullback in parking rates. In contrast, Canadian parking costs registered sizeable gains, reflecting a more robust marketplace. And as outlined below, parking rates in regions around the world largely mirrored U.S. pricing trends.

Daily and monthly parking rates in the U.S. diverged over the past 12 months (ending June), with daily rates up 1.2 percent ($0.18) and monthly rates sliding ever so slightly by 0.9 percent ($1.47). Such relative steadiness in the face of this historic recession may be attributed to a continued imbalance between parking supply and demand.

The modest 0.9 percent drop in U.S. monthly parking rates is attributed to a substantial decline in office occupancies, which tends to push monthly rates lower. However, monthly rates’ drop was quite mild when compared to the significant weakness in the office sector.

Daily rates are more a function of the general economy and consumer spending, and their 1.2 percent increase showcases that demand for daily parking remains remarkably strong even as the economy and retail sector continue to suffer. This underscores the strong ties people have to their cars.

Even though the economy is expected to remain sluggish, and the labor market lackluster, drivers should not expect this weakness to manifest itself in lower parking rates. While higher fuel prices across North America have reduced the total number of miles driven, demand for parking seems to be more recession-proof, and this affords garage owners and operators the opportunity to hold prices close to year-ago levels. Moreover, when the economy rebounds, the markedly rising parking rates of years past are expected to return, according to Colliers.

Parking in the U.S. – Monthly

• Monthly parking rates decreased marginally during the past 12 months, falling just $1.47 or 0.9 percent.

• The monthly median parking rate now averages $154.23 in the U.S.

• Monthly parking rates range from a high of $700.00 in Midtown Manhattan to a low of $20.00 in Memphis.

• The five most expensive U.S. parking districts are (median monthly rate):
  • Midtown Manhattan – $550.00
  • Downtown Manhattan – $500.00
  • Boston – $403.00
  • San Francisco – $350.00
  • Chicago – $325.00

• The five least expensive U.S. parking districts are (median monthly rate):
  • Bakersfield – $40.00
  • Reno – $45.00
  • Ft. Lauderdale – $53.00
  • Memphis – $57.00
  • Walnut Creek, CA – $57.50

Parking in the U.S. – Daily

• Daily rates, on the other hand, rose slightly by 1.2 percent, or $0.18.

• The median daily parking rate now averages $15.96 in the U.S.

“Colliers has been tracking the parking sector for nine years, and we have historically observed a direct link between the health of the office market and monthly parking – and the health of the consumer economy and daily parking,” remarked Ross Moore, executive vice president and director of market & economic research at Colliers International. “However, this year’s survey results truly showcase how resilient the parking sector is. We are undergoing an unprecedented time of economic hardship, job loss and contraction in consumer spending. And in the face of such challenges, parking rates nationwide have basically held steady, in many cases posting increases. Is parking immune to swings in the general economy? Watching rates as the next year unfolds may certainly speak volumes.”

U.S. Parking Inventory

In contrast to 2008, 13.6 percent of garages surveyed this year by Colliers have a waiting list, with an average wait of 3.7 months. The year-ago findings showed that 20.9 percent of garages had a waiting list, with an average wait of 4.3 months.

Just over three-quarters of the CBDs surveyed by Colliers described their city’s parking supply as “fair” (garages are 60-80 percent full on weekdays, and on weekends during special events). Sixteen percent indicated their parking supply was “limited” (garages are usually full on weekdays and on weekends during special events), and 6.0 percent characterized their parking supply as “abundant” (garages are consistently less than 60 percent full).

In addition, 36 percent of cities surveyed noted that new garages are slated for construction in the next 24 months.

Per all the above measures, parking pressures have eased a bit in 2009, though prices remain steady.

Parking in Canada – Monthly

• Monthly parking rates in Canada increased by $20.00, a robust 9.9 percent over 2008 levels, when parking rates jumped 8 percent.

• The monthly median parking rate in Canada now averages $222.60 CAD.

• The five most expensive Canadian parking districts are (monthly median rate):
  • Calgary – $460.00 CAD
  • Toronto – $305.00 CAD
  • Montreal – $280.00 CAD
  • Edmonton – $275.00 CAD
  • Vancouver – $224.00 CAD

Parking in Canada – Daily

• Canadian daily parking rates increased by 9.9 percent as well.

• The median rate for daily parking in Canada now averages $15.04 CAD.

Global

Outside North America, Colliers now tracks 76 markets around the world. Once again, London seized top the top spot as the most expensive parking district in the world, with London – City leading the way.

The top-five most expensive parking districts in Europe, Middle East, and Africa (EMEA) include (monthly median rate, in USD):

• London – City: $1,020.00
• London – West End: $956.00
• Amsterdam: $805.00
• Zurich: $516.00
• Milan: $495.00

The top-five most expensive parking districts in Asia-Pacific include (monthly median rate, in USD):

• Hong Kong: $748.00
• Sydney: $588.00
• Brisbane: $529.00
• Tokyo: $525.00
• Perth: $517.00

The top-five most expensive parking districts in Latin America include (monthly median rate, in USD):

• Bogota: $280.00
• Buenos Aires: $150.00
• Lima: $145.00
• Sao Paulo: $140.00
• Santiago: $140.00

About Colliers

Colliers International is a global affiliation of independently owned commercial real estate firms. The organization’s 12,749 employees span the world in 294 offices in 61 countries. On a worldwide basis, Colliers manages more than 1.1 billion square feet and has revenue of $US 1.6 billion. For more information, visit http://www.colliers.com.

                                                           Monthly Unreserved
    U.S. Market                              Daily Median      Median Rate
                                               Rate (USD)          (USD)

    Atlanta, GA                                  $12.00            $90.00
    Bakersfield, CA                               $7.25            $40.00
    Baltimore, MD                                $13.00           $160.00
    Bellevue, WA                                 $14.00           $170.00
    Boise, ID                                    $12.00            $80.00
    Boston, MA                                   $34.00           $402.50
    Charleston, SC                               $12.80           $107.25
    Charlotte, NC                                $13.61           $103.75
    Chicago, IL                                  $31.00           $325.00
    Cincinnati, OH                                $9.50           $127.50
    Cleveland, OH                                $10.00           $172.50
    Columbia, SC                                 $10.00            $65.00
    Columbus, OH                                  $9.00           $110.00
    Dallas, TX                                   $10.50            $90.00
    Denver, CO                                   $16.00           $175.00
    Fresno, CA                                    $8.00            $60.00
    Ft. Lauderdale, FL                           $15.00            $53.00
    Greenville, SC                                $6.00            $69.75
    Hartford, CT                                 $20.00           $175.00
    Honolulu, HI                                 $35.50           $212.33
    Houston, TX                                  $12.00           $140.00
    Indianapolis, IN                             $11.00           $105.00
    Jacksonville, FL                              $8.70            $94.54
    Kansas City, MO                              $10.00            $90.00
    Las Vegas, NV                                  free            $65.00
    Little Rock, AR                               $6.46            $59.12
    Los Angeles, CA                              $28.20           $205.00
    Louisville, KY                                $9.00            $96.00
    Memphis, TN                                   $4.00            $57.00
    Miami, FL                                    $17.00           $134.12
    Milwaukee, WI                                $12.00           $110.00
    Minneapolis/St. Paul, MN                     $17.25           $187.00
    Nashville, TN                                $12.00           $125.00
    New York, NY; Downtown                       $38.00           $500.00
    New York, NY - Midtown                       $44.00           $550.00
    Oakland, CA                                  $18.00           $192.50
    Orlando, FL                                  $15.00            $85.00
    Philadelphia, PA                             $26.00           $314.00
    Phoenix, AZ                                   $9.00            $65.00
    Portland, OR                                  $9.00           $185.00
    Raleigh, NC                                  $12.00            $95.00
    Reno, NV                                       free            $45.00
    Sacramento, CA                               $19.35           $215.00
    San Diego, CA                                $26.00           $180.00
    San Francisco, CA                            $25.00           $350.00
    San Jose/Silicon Valley, CA                  $15.00           $117.50
    Seattle, WA                                  $28.00           $290.00
    St. Louis, MO                                $12.00           $105.00
    Tampa, FL                                    $15.00           $133.00
    Walnut Creek, CA                             $10.00            $57.50
    Washington, DC                               $14.00           $215.00
    West Palm Beach, FL                          $16.00            $68.90
    NATIONAL AVERAGE                             $15.96           $154.23

                                                            Monthly Unreserved
    Canadian Market                           Daily Median      Median Rate
                                               Rate (CAD)          (CAD)
    Calgary, AB                                  $22.00           $460.00
    Edmonton, AB                                 $14.00           $275.00
    Halifax, NS                                  $14.00           $153.00
    Kitchener-Waterloo, ON                       $10.00           $100.00
    Montreal, QC                                 $17.00           $280.00
    Ottawa, ON                                   $17.00           $195.00
    Regina, SK                                    $8.00           $148.00
    Saskatoon, SK                                 $9.00           $158.00
    Toronto, ON                                  $22.50           $305.00
    Vancouver, BC                                $17.00           $224.00
    Victoria, BC                                 $12.00           $185.00
    Winnipeg, MB                                 $18.00           $190.00
    NATIONAL AVERAGE                             $15.04           $222.75

                                         Daily Median    Monthly Unreserved
    EMEA Country           City            Rate (USD)     Median Rate (USD)

    Albania               Tirana              $6.51         $130.22
    Austria               Vienna             $56.62         $396.31
    Bulgaria              Sofia              $16.98         $283.08
    Croatia               Zagreb             $12.74         $155.69
    Czech Republic        Prague             $15.57         $311.39
    Denmark               Copenhagen         $47.28         $472.75
    Estonia               Tallinn            $22.65         $226.46
    Finland               Helsinki           $41.05         $396.31
    France                Paris              $33.97         $319.88
    Germany               Berlin             $25.48         $176.93
    Germany               Dusseldorf         $35.39         $232.13
    Germany               Frankfurt          $33.97         $298.65
    Germany               Hamburg            $33.97         $336.87
    Germany               Munich             $28.31         $370.55
    Germany               Stuttgart          $28.31         $302.90
    Greece                Athens             $24.06         $311.39
    Hungary               Budapest           $29.50         $295.00
    Ireland               Dublin             $31.14         $467.08
    Israel                Tel Aviv           $22.00         $175.00
    Italy                 Milan              $28.31         $495.39
    Latvia                Riga               $25.48         $200.99
    Lithuania             Vilnius             $9.91         $205.23
    Norway                Oslo               $55.69         $477.30
    Poland                Warsaw              $8.14         $184.00
    Portugal              Lisbon             $16.98         $169.85
    Romania               Bucharest               -         $205.23
    Russia                Moscow             $25.00         $250.00
    Russia                St. Petersburg     $31.00         $350.00
    Serbia                Belgrade           $14.15         $176.93
    Slovakia              Bratislava         $26.18         $169.85
    South Africa          Cape Town           $7.61         $132.19
    South Africa          Durban              $4.44          $80.96
    South Africa          Johannesburg        $5.49          $71.45
    South Africa          Pretoria            $5.39          $90.66
    Spain                 Madrid             $35.39         $261.85
    Sweden                Stockholm          $34.22         $447.44
    Switzerland           Geneva             $26.26         $431.34
    Switzerland           Zurich             $37.51         $515.74
    The Netherlands       Amsterdam          $70.77         $805.36
    The Netherlands       Eindhoven          $19.82         $203.82
    The Netherlands       Rotterdam          $38.22         $290.16
    The Netherlands       The Hague          $56.62         $268.93
    The Netherlands       Utrecht            $36.80         $297.23
    UAE                   Abu Dhabi           $5.00         $105.00
    UAE                   Dubai              $40.00         $240.00
    UK                    London - City      $56.68       $1,020.29
    UK                    London - West End  $51.82         $955.51
    Ukraine               Kiev                $8.00         $250.00

                                         Daily Median   Monthly Unreserved
    Asia Pac Market        City           Rate (USD)     Median Rate (USD)

    Australia             Sydney             $44.10         $587.72
    Australia             Brisbane           $38.09         $529.19
    Australia             Perth              $23.25         $517.16
    Australia             Melbourne          $30.47         $340.77
    Australia             Adelaide           $14.83         $220.50
    Australia             Canberra            $6.82         $204.46
    China                 Hong Kong          $28.38         $748.20
    China                 Shanghai           $11.74         $220.05
    China                 Beijing             $7.04         $146.70
    Indonesia             Jakarta                 -          $27.20
    Japan                 Tokyo              $52.50         $525.00
    New Zealand           Auckland            $8.97         $256.28
    New Zealand           Wellington          $8.97         $249.87
    Singapore             Singapore          $21.06         $179.24
    Philippines           Manila              $2.65          $42.40
    Singapore             Singapore          $21.06         $179.24
    Thailand              Bangkok            $11.43          $85.71

                                         Daily Median  Monthly Unreserved
    Latin America Market    City           Rate (USD)   Median Rate (USD)

    Argentina             Buenos Aires       $10.00         $150.00
    Brazil                Sao Paulo          $15.00         $140.00
    Chile                 Santiago           $12.00         $140.00
    Colombia              Bogota             $12.50         $280.00
    Costa Rica            San Jose           $11.00         $120.00
    Mexico                Mexico City        $15.50         $116.00
    Peru                  Lima               $15.00         $145.00

SOURCE Colliers International