How Much Does Existing Street Parking Influence Your Development Strategy?

Question

Curious to hear everyone’s thoughts on this:

If you were developing a property in a neighborhood where most existing homes don’t have dedicated parking, and there is currently unrestricted street parking, would you still provide on-site parking as part of the development?

I’m particularly interested in how investors/developers think about the tradeoff between dedicating site area and construction costs to parking versus using that space for additional living area, landscaping, densification, or other uses.

I realize there may also be zoning or market considerations, but I’m curious how people would approach it from a development and ROI perspective.

Nathan Fisher · Answer

commuter cities need off street parking. Having true parking makes renting astronomically easier.

Mark Updegraff · Answer

@Philippe Kame I wouldn’t assume unrestricted street parking today means that parking will always be available.

I’d approach this with two separate site plans and underwrite both.

First, determine what zoning and approvals actually require. Then compare the incremental value of additional living space or units against the cost and marketability of providing dedicated parking.

I’d also consider what happens after construction. Snow removal, emergency access, accessibility, municipal parking restrictions and neighborhood density can all change how valuable that parking becomes.

Being in Rochester, winter access is something I pay particular attention to. A street that has plenty of available parking in July can be a different animal in February.

The objective isn’t necessarily maximizing units or maximizing parking. It’s maximizing the long-term value of a project that can actually be approved, financed, occupied and operated.

Sometimes eliminating parking makes perfect sense. Other times, the additional space becomes a meaningful competitive advantage.

Xavier Milsoni · Answer

I’d look at what renters in that specific area actually expect. If street parking is easy to find, I’d probably use the space for something that adds more value, unless the lack of parking starts putting people off renting.

Philippe Kame · Answer

Oh wow, thank you for your input! I’m in Detroit, where density is still relatively low, and the neighborhood I’m exploring doesn’t seem to have much competition for street parking. I hadn’t considered snow, though, and I’m curious how residents typically deal with that. I don’t drive myself, so I’ll have to ask around and get a better sense of how parking works for people in the area.

Personally, I’m more inclined to use that space to create more livable square footage, but you make a good point about parking being a significant selling point. It’s a trade-off worth thinking through!

How Much Does Existing Street Parking Influence Your Development Strategy?

How Much Does Existing Street Parking Influence Your Development Strategy?

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