Over the years, we've come across a great many commercial properties that had so much to offer - high ceilings, high-quality interiors, cranes, rail access, and of course, terrific per-square-foot rates, to name only a few. These properties, however, suffered from a shortage of tenants due to a singular deficiency: a lack of parking.
Think of it this way: A small manufacturing business (prospective tenant) has 133 total employees on an eight-hour shift rotation. There are, at most, 60 parking spots needed for the standard day shift. This parking is needed for factory personnel, office personnel, and visitors to the business. This prospective tenant is searching for a new space for operations. Given that parking is a requirement for most businesses that have employees and/or a visiting client base, if an available property has no parking, or not enough parking, then many prospective tenants are likely going to elsewhere.
Many older industrial/commercial properties, such as warehouses and converted manufacturing centers and the like, lack proper parking that reflects the needs of a modern market. Some even have undeveloped land where parking might be added, yet they choose not to add parking due to the hesitancy to spend - I would rather use the word 'invest' - funds into turning unused land into a usable parking lot.
Why invest in increasing your available parking to meet and even slightly exceed modern market demand?
Substantial available parking can add overall value to the property's PSF price and sale price
Substantial available parking keeps current tenants
Substantial available parking attracts new tenants
A quality, well-managed parking lot provides for a safer property with less accidents, as opposed to undeveloped land that is greatly affected by seasonal, inclement weather. Simply put, a parking lot is much easier to manage than uneven, rocky land
A quality, well-managed parking lot helps create and maintain an overall positive image of the property and any other properties you may own or manage
Investing in parking improvements can increase the value of your property. Undeveloped land that is under-utilized or simply unused is not working to support a real estate investment. The addition of a parking lot opens your commercial property to a new market of prospective tenants, which in turn may yield greater income. Contact Industrial Commercial Real Estate to discuss commercial property reinvestment projects that meet the demand of your real estate market.