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Lacey Muszynski
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Premium Parking
Lacey Muszynski
17 Jul 2007 8:00 AM
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Developers take note: parking spots may be the next big craze in real estate.
So maybe I’m exaggerating a little bit. Parking spaces for condo owners have always been sold at premium in areas like Manhattan, Chicago and Los Angeles, but recently, parking spaces for condo owners in Manhattan have been going for $225,000. That breaks down to the same price as the condo — and sometimes more — per square foot.
And with regulations in NYC capping the number of parking spots in new construction residential buildings at 20 percent of units, the price of those in-demand spaces is only expected to rise.
Condo buyers are already aware of the lucrative business opportunity presented to them: Some buy the parking spaces and rent them out for a premium, helping to pay off that penthouse.
The particular building in Manhattan with $225,000 spaces has 2-bedroom condo units listed for $2.2 million — about $1,200 per square foot. How does the parking space break down? They’re about $1,500 per square foot. Now that’s prime investment real estate.
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