Boston is one of the nation’s most expensive cities to park, after New York City’s two central business districts (CBDs) topped this year’s list of the most expensive cities to park in the nation, according to a recent survey.
Midtown Manhattan’s monthly median price tag hit $538 and downtown was not far behind at $529. Both were more than three times the national average. Following Manhattan’s two CBDs was Boston at $425, San Francisco at $375 and Chicago at $320, according to the Colliers International 10th Annual Parking Rate Survey.
Parking rates in North American central business districts (CBDs) held firm over the past 12 months, despite overall downward pressure on sale prices and leasing rates in other segments of the commercial real estate market, the survey found.
The median monthly parking rate for the 44 U.S. CBDs surveyed increased by 1.1 percent from June 2009 to June 2010, reaching $161.56.
With the economic recovery unfolding in slow-motion, parking rates are expected to show little change over the next 12 months, reports Colliers. Rates are expected to trend upward beginning in the second half of 2011, however.
Stabilizing office occupancies is one of the underlying reasons for the slight uptick in monthly parking rates. Supply and demand is another major factor in the stability of parking rates in North America, according to Ross J. Moore, executive vice president and chief economist for Colliers International in the U.S.
"Parking availability in only four of the 56 central business districts surveyed were described as ‘abundant’ with the remainder being ‘fair’ or ‘limited,’" said Moore. "That situation is not expected to change much, with only six new garages containing less than 4,000 spaces to be added in the next two years in the U.S. and 10 new garages with 1,800 spots to be added in Canada."
Among the U.S. cities with the lowest median monthly parking rates were Phoenix at $40, Reno, Nev. at $45, Walnut Creek/East Bay, Calif. at $47.50, Ft. Lauderdale, Fl. at $53 and Bakersfield, Calif. at $55.
