Charlotte, North Carolina

Parking costs have risen nationwide for the fifth year in a row, according to the eighth annual Parking Rate survey being released today from Colliers International, a leading global real estate services company.  The survey was conducted in June and covered a broad selection of 64 metro areas in North America, as well as the new addition of 74 cities in Europe, Asia and Latin America.

The price increases found in this year’s report mirror last year’s pattern, as parking owners and operators continue to feel bullish, reflecting limited supply in many U.S. markets.  

Even though the U.S. economy has slowed in 2008, office occupancies remain near cyclical peaks, and this has helped push monthly parking rates higher.   Daily rates, which are more a function of the general economy and consumer spending, have also increased – and this suggests that the sluggish retail environment and higher gas prices have yet to impact the ability of parking garage owners and operators to charge more.

The U.S. economy is widely expected to decelerate further in the coming months, and the labor market is unquestionably shaky.  For the most part, parking rates are expected to show little change in the near term – however, in select markets, we may see rates come down. 

Leading the U.S. was Midtown Manhattan, whose median rate was a remarkable $585.00 per month to park.  However, this masks the Midtown high, which now registers $750.00 per month.

With 53 U.S. markets and 11 Canadian markets under study, Colliers’ survey shows that over the past 12 months, the cost of parking has increased by 2.8 percent (monthly rates) in the U.S., in response to ongoing demand and only limited new supply.  Daily rates also moved higher – increasing 4.3 percent over the past year. 

Although North American cities such as New York and Boston look very expensive, their parking prices actually pale in comparison to typical monthly rates in cities such as London, Sydney and Hong Kong.    

U.S. Rates
The median monthly parking rate is now $153.79 in the United States.  Rates range from a high of $750.00 in midtown Manhattan to a low of $20.00 in Memphis, Tennessee. 

Daily parking rates, as noted, rose 4.3 percent in the U.S.   The median rate for daily parking is now $15.42. 

The five most expensive parking districts in the U.S. are (median monthly rates):
• New York City, Midtown:  $585.00 per month 
• New York City, Downtown:  $462.00 per month
• Boston, MA:  $460.00 per month
• San Francisco, CA:  $350.00 per month
• Chicago, IL:  $310.00 per month

The five least expensive parking districts in the U.S. are (median monthly rates):
• Bakersfield, CA:  $40.00 per month
• Reno, NV:  $45.00 per month
• Phoenix, AZ:  $52.50 per month
• Santa Rosa, CA / Fresno, CA (tie):  $55.00 per month
• Memphis, TN:  $57.00 per month  

“This is our eighth year tracking the parking sector, and we continue to observe a direct correlation between the rising cost of monthly parking and the ongoing strength of the office real estate market,” remarked Ross Moore, senior vice president and director of market & economic research at Colliers International.  “However, parking inventory in CBDs across the country is increasingly tight.  This dearth of parking and accompanying rise in cost, coupled with skyrocketing fuel prices – all in the face of a stagnating economy – exacerbates the everyday headaches faced by commuters nationwide.”

U.S. Inventory
Building on 2007’s tight supply, just over one in five (20.9 percent) of U.S. garages polled by Colliers reported having a waiting list – and the average wait time was 4.3 months for a space.
 
Some relief may be on the way, however, with 40 percent of cities indicating new garages will be constructed over the next 24 months.   Indeed, only 15 cities have ordinances in place restricting parking garage development – leaving the vast majority with no such restrictions on new construction.

That said, 74 percent of cities surveyed by Colliers described their parking supply as “fair” (meaning garages are 60-80 percent full Monday through Friday and on weekends during special events), while 23 percent indicated supply was “limited” (garages usually full Monday through Friday and on weekends during special events), and finally, three percent classified their parking supply as “abundant” (meaning garages are consistently less than 60 percent full).

Canada
Rates for monthly parking in Canada have also increased during the past 12 months, rising 8.0 percent.  The median monthly rate for parking is now C$211.94.  Canadian daily parking rates increased 8.8 percent during the same 12-month period, and the median rate for daily parking is now C$15.16.

The five most expensive parking districts in Canada are (median monthly rates, in Canadian dollars):
• Calgary, AB:  C$428.00 per month
• Montreal, QB:  C$290.01 per month
• Toronto, ON:  C$290.00 per month
• Vancouver, BC:  C$218.40 per month
• Edmonton, AB:  C$200.00 per month

Global
Parking rates in cities around the world make even priciest U.S and Canadian cities seem reasonable.  London once again took the cake as the most expensive parking district in the world, with London - City leading the way.   Australian markets dominated the top spots on the Asia-Pacific list, and Santiago, Chile posted the highest parking rates in Latin America.

The three most expensive parking districts in EMEA (Europe, Middle East, Africa) are (Daily / Monthly, in U.S. dollars):
• London – City:  $68.07 per day / $1,166.87 per month
• London – West End:  $62.23 per day / $1,135.76 per month
• Stockholm, Sweden:  $39.40 per day / $508.92 per month

The three most expensive parking districts in Asia-Pacific are (Daily / Monthly, in U.S. dollars):
• Sydney, Australia:  $54.47 per day / $774.76 per month
• Hong Kong, China:  $28.16 per day / $742.40 per month
• Perth, Australia:  $15.03 per day / $610.42 per month

The three most expensive parking districts in Latin America are (Daily / Monthly, in U.S. dollars):
•  Santiago, Chile:  $200.00 per month
• Mexico City, Mexico:  $20.00 per day / $150.00 per month
• Lima, Peru:   $15.00 per day / $145.00 per month