OK – Got it…$225,000 a space

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OK – Got it…$225,000 a space

I saw this article in the NY Times a few days ago and thought I would comment on it some time. In the past two days I have received no less than 10 emails about it.

These folks paid $165,000 for a 10×15 space in New York, and a developer has unbundled parking in his new condo building on Manhattan, selling the spaces for $225,000. Everyone seems all agog that a parking space will sell for that. Frankly, I have heard of them selling in London, Chicago and in New York for twice that.

But that’s not the point. Finally someone can buy a condo without paying for the parking space under it they may never use. Many people in New York, or London, for that matter, don’t own cars. They are superfluous. So why have to pay for the parking under the building. In this case, the developer was allowed by code to only build 5 spaces in his 34 unit building, so he is selling them to those who want them.

This is nothing new, but will continue, and should. If you own a car, you should pay for all its expenses, including the cost to park it. That’s true for on street as well as off street parking. If covered secure parking in NYC goes for $225,000 and you amortize that over 30 years, the cost is about $675 a month ($625 plus a $50 condo fee). What should it cost to park on street?  $150?  $250?  $300?  If you were guaranteed a space within a block of your building and could zip in and out at will, isn’t that of value?

JVH

Picture of John Van Horn

John Van Horn

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