Price Tag of Parking

I found an article entitled “Price Tag of Parking.” The author argues that there is really no such thing as free parking. Even parking that is provided at no cost often carries a high price for parking providers. The costs associated with no cost parking include investments in land, construction costs, property and sales taxes, and maintenance and operating costs. These parking costs are usually passed on to the operator of the facility. For example, a mall owner will charge higher rent to cover the costs associated with parking. Higher rents usually translate into higher prices for customers.

The article suggests that owners should carefully consider whether more parking is needed before building new parking since this will involve additional costs. Construction costs for one parking space can be anywhere from $6,000 to $15,000. In assessing parking demand, owners should ask three questions: How long will patrons park? How many times will each space turn over? When will demand exist?

Even if more parking is needed, building a new structure isn’t necessarily the best approach. Owners should consider other options such as operating a shuttle service from remote parking, employing policies to discourage people from driving, building a surface lot on an existing vacant lot, re-striping existing facilities to increase supply, or implementing parking management strategies that allow existing parking facilities to be used more efficiently.

John Dorsett, Price Tag of Parking, Today’s Facility Manager, February 1998, available at http://www.walkerparking.com/documents/dorsett_price_tag.pdf