Cost of Parking on the Rise for Third Consecutive Year, According to Colliers International's 2006 Parking Survey
BOSTON, July 18 -- Parking costs have increased nationwide for the third year in a row, mirroring rising demand for office space and adding stress for commuters in the U.S., Canada and around the world, according to the sixth annual North American Parking Rate survey from Colliers International, a leading global real estate services firm.
With 49 U.S. markets and ten Canadian markets under study, Colliers' survey shows that over the past 12 months, the cost of parking has increased by 4.4 percent (monthly rates) in response to an improved business climate and continued robust retail spending. Daily rates showed the most significant increase -- consistent with strong retail sales and a buoyant economy. Even if the economy slows, Colliers predicts parking rates will continue to rise over the next 12-month period.
Indicative of this overall upward trend, Midtown Manhattan has broken well through the $500 per month barrier for a monthly parking spot. However, comparatively, this is quite reasonable when considering typical monthly parking rates in cities such as London, Tokyo and Hong Kong. Other global markets such as Paris, Sydney, Frankfurt, Munich and Moscow come in at more reasonable rates.
United States
Rates for unreserved parking spaces crept higher during the past 12 months, rising 4.4 percent in the U.S. The median rate for unreserved parking now averages $153.19 per month. Unreserved rates range from a high of $887.80 in midtown Manhattan to a low of $20.00 in Memphis, Tennessee.
Reserved parking rates increased marginally less than unreserved rates during the same 12-month period, rising 3.8 percent -- the median rate for reserved parking now averages $180.68.
Daily parking rates, however, posted a sizeable gain of 10.1 percent in the U.S. The median rate for daily parking now averages $15.28.
The five most expensive parking districts in the U.S. are (median monthly unreserved rates):
* Midtown Manhattan -- $574.00 per month * Downtown Manhattan - $500.00 per month * Boston -- $420.00 per month * San Francisco -- $335.00 per month * Chicago -- $332.00 per month
The five least expensive parking districts in the U.S. are (median monthly unreserved rates):
* Phoenix -- $35.00 per month * Walnut Creek, CA -- $35.00 per month * Bakersfield, CA -- $40.00 per month * Reno, NV -- $45.00 per month * Fresno, CA -- $55.00 per month
"We see a direct correlation between the rising cost of parking and the ongoing strength of the office market," remarked Ross Moore, Senior Vice President and Director of Market & Economic Research at Colliers International. "As office tenants continue to take up more space, parking spots in business districts nationwide are quickly disappearing, adding another burden for commuters."
Despite these price increases, 70.3 percent of cities surveyed described their parking supply as "fair" (garages are 60-80 percent full Monday through Friday and on weekends during special events), while 22.9 percent of respondents indicated their parking supply was "limited" (garages usually completely full Monday through Friday and on weekends during special events). Only 6.3 percent considered their city's parking supply to be "abundant" (garages consistently less than 60 percent full). Further, 18.3 percent of U.S. garages reported a waiting list with an average wait of 3.4 months.
On the supply side, in the 49 U.S. markets Colliers surveyed, 63 parking garages are expected to be added over the next 24 months, although 27 percent of these additions will occur in Washington, D.C. alone.
Canada
Rates for unreserved parking spaces in Canada posted marked gains during the past 12 months, rising 14.1 percent. Indeed, the median rate for unreserved parking now averages C$194.51 per month. Canadian daily parking rates increased 7.6 percent during the same 12-month period, and the median rate for daily parking now averages C$13.25.
The five most expensive parking districts in Canada are (median monthly unreserved rate):
* Calgary -- C$375.00 per month * Toronto -- C$300.00 per month * Montreal -- C$259.00 per month * Ottawa -- C$195.00 per month * Vancouver -- C$194.00 per month Global
Parking rates in cities around the world make even the most expensive U.S. and Canadian cities seem reasonable.
Typical parking rates (Daily / Monthly, in U.S. dollars): * London, West End -- $58.90 per day / $898.00 per month * London, City -- $55.20 per day / $896.00 per month * Tokyo -- $84.20 per day / $702.00 per month * Hong Kong -- $25.75 per day / $682.00 per month * Midtown Manhattan -- $40 per day / $574.00 per month * Moscow -- $29.60 per day / $531.00 per month * Sydney -- $38.25 per day / $488.00 per month * Paris -- $31.75 per day / $317.50 per month * Munich -- $19.05 per day / $295.00 per month * Frankfurt -- $34.30 per day / $278.00 per month * Toronto -- $17.85 per day / $268.00 per month
Colliers International's survey was conducted in June and covered a broad selection of 59 metropolitan areas in North America, as well as select cities in Europe and Asia.
About Colliers
Colliers International is a global partnership of independently owned commercial real estate firms. The organization's 9,141 employees span the world in approximately 250 offices worldwide. On a global basis, Colliers manages over 660 million square feet, and has revenue of over US$1 billion. For more information about Colliers International, visit http://www.colliers.com/.
Monthly
Unreserved
U.S. - Market Daily Parking Rate Monthly Reserved
(U.S.$) Rate (Median) (Median) Rate (Median)
Atlanta, GA 10.00 90.00 125.00
Austin, TX 10.00 100.00 150.00
Bakersfield, CA 6.50 40.00 50.00
Baltimore, MD 12.50 132.50 260.00
Boise, ID 12.00 79.00 95.00
Boston, MA 31.00 420.00 N/A
Chicago, IL 25.00 332.00 380.00
Cincinnati, OH 10.00 85.00 300.00
Columbia, SC 10.00 65.00 100.00
Columbus, OH 9.00 95.00 130.00
Dallas, TX 9.00 65.00 170.00
Denver, CO 12.00 140.00 140.00
Detroit, MI 7.00 155.00 185.00
Fresno, CA 10.00 55.00 65.00
Ft. Lauderdale, FL 16.00 70.00 85.00
Hartford, CT 19.25 190.80 310.05
Honolulu, HI 30.00 190.50 298.50
Houston, TX 12.00 145.00 225.00
Indianapolis, IN 8.00 105.00 135.00
Jacksonville, FL 13.00 110.00 110.00
Kansas City, MO 11.00 100.00 130.00
Los Angeles, CA 24.00 190.00 262.00
Louisville, KY 10.00 100.00 112.00
Memphis, TN 6.00 57.00 100.00
Miami, FL 13.00 100.00 137.00
Milwaukee, WI 22.00 100.00 130.00
Minneapolis, MN 11.00 159.50 195.00
Nashville, TN 7.00 130.00 135.00
New York, NY - Downtown 32.00 500.00 N/A
New York, NY - Midtown 40.00 574.12 N/A
Oakland, CA 22.50 165.00 222.50
Orlando, FL 12.00 77.50 137.50
Philadelphia, PA 22.00 325.00 387.00
Phoenix, AZ 7.00 35.00 55.00
Pittsburgh, PA 14.60 247.10 317.10
Portland, OR 12.50 166.00 220.00
Raleigh, NC 17.50 75.00 120.00
Reno, NV 15.00 45.00 60.00
Sacramento, CA 16.00 200.00 200.00
San Diego, CA 22.00 160.00 205.00
San Francisco, CA 24.00 335.00 375.00
San Jose/Silicon
Valley, CA 18.75 87.50 150.00
Seattle, WA 24.00 250.00 350.00
St. Louis, MO 12.00 105.00 142.50
Tacoma, WA 12.25 118.00 143.00
Tampa, FL 12.00 110.00 187.00
Walnut Creek, CA 15.00 35.00 85.00
Washington, DC 14.00 230.00 360.00
West Palm Beach, FL 7.50 65.00 80.00
AVERAGE 15.28 153.19 180.68
Monthly
Unreserved
CANADA- Market Daily Parking Rate Monthly Reserved
(C$) Rate (Median) (Median) Rate (Median)
Calgary, AB 19.00 375.00 412.50
Edmonton, AB 12.00 140.00 205.00
Halifax, NS 15.00 142.50 153.90
Montreal, QC 15.00 259.50 371.90
Ottawa, ON 17.00 195.00 220.00
Regina, SK 6.50 112.35 139.10
Saskatoon, SK 5.50 107.00 107.00
Toronto, ON 20.00 300.00 455.00
Vancouver, BC 12.50 193.80 285.00
Victoria, BC 10.00 120.00 160.00
AVERAGE 13.25 194.52 250.94