Comment 36974

By Ted Mitchell (registered) | Posted January 11, 2010 at 23:22:16

Let's do math!

On MLS, close to Locke: 275 Main W $200,000 for 1450 sq feet lot, 90 Locke $490,000 for 3450 sq ft lot. Both examples are within 3% and average $140/sq ft.

Let's assume the buildings are 50% of the value, unimproved lot the other 50%. The lot is then valued at $70/sq ft. That's $3 mil/acre, sounds large, but this is prime retail.

Assuming parking area = empty lot area for value, the average parking space is 320 sq feet (wikipedia). So using the Locke st business area as our reference, that's $22,400 to buy a parking space.

An investment expecting a 10% ROI, 3% inflation, net 13% gives $2912/year in perpetuity.

Charging M-F 8am-6pm (10 hours), that's 2607 parking hours per year.

So, ballpark $1.12 / hour. Not counting pavement, maintenance and density lowering effects.

At $1/hr that's a deal. If Locke has 100 parking spots at 85% occupancy that's about $220,000 annual revenue, like Donald Shoupe suggests, for the neighbourhood.

Permalink | Context

Events Calendar

There are no upcoming events right now.
Why not post one?

Recent Articles

Article Archives

Blog Archives

Site Tools