As the trends of coworking and telecommuting are making an impact on office space and the demands on commercial real estate investors, there is another key area where efficiency may yield new challenges: parking.
Property owners are scrambling to accommodate increased parking demands as companies choose to host more employees in less space. In markets where mass transit doesn’t offer an easy solution, this issue can clog buildings’ parking lots and, ultimately, translate to unleasable space due to insufficient parking.
Whereas four parking spaces per 1,000 square feet was once adequate to meet tenant needs, buildings may now require six or seven spots for the same amount of office space. To manage the density, building owners may consider several options:
Just as commercial real estate investors would create interior environments to meet tenant needs, some are managing parking needs in a similar fashion. By building parking decks on top of surface lots, owners can maximize parking space. However, this solution comes with a hefty price tag, often as much as $100 per square foot.
If the parking space allotted for a given building doesn’t provide a build-out option, property owners may consider nearby lots. In some cases, demolishing out-of-date buildings near a primary structure can allow for greater opportunities, whether in terms of expanded parking or reconfigured structures.
Whether a shuttle runs from mass transit depots or off-site parking lots, it may provide a solution that ensures the continued future occupancy of a commercial office space. Beyond a traditional shuttle, some employers may choose to incentivize alternate methods of transportation, such as carpooling or biking.
Whether you’re considering the parking constraints at a potential office space for your business or evaluating your current portfolio’s capacity, the commercial real estate professionals at Intelica can help. Contact us for comprehensive information regarding this and other property amenities that impact demand within the current market.