Query RE: Expensive car parking spaces.
Discussion
Hi Guys/Girls,
I am doing a uni project on a city centre development to have 32 apartments and just under 40,000 sq ft of offics.
I am just curious to find out from anyone who may have experience, with prices of £18,000 & £3750 per basement and surface space respectively; who would be the main purchasers of the spaces? Companies in the offices or apartment owners?
It just seems extremely steep for a homeowner to spend so much on a parking space.
All (well this is PH...) advice/feedback is greatly appreciated.
Regards,
Tim.
I am doing a uni project on a city centre development to have 32 apartments and just under 40,000 sq ft of offics.
I am just curious to find out from anyone who may have experience, with prices of £18,000 & £3750 per basement and surface space respectively; who would be the main purchasers of the spaces? Companies in the offices or apartment owners?
It just seems extremely steep for a homeowner to spend so much on a parking space.
All (well this is PH...) advice/feedback is greatly appreciated.
Regards,
Tim.
In the block my sister rents in Central London, the spaces are rented out for between £200 - £300 pcm.
Many councils disallow people who live in a development to get on street parking permits.
If you needed to park, you would either need to rent a bay or have purchased one with your property.
If you rented a spot, it could cost you £250 for example - this over a 12 month period is £3000.
So I think it is really attractive to flat purchasers to have underground parking!
Many councils disallow people who live in a development to get on street parking permits.
If you needed to park, you would either need to rent a bay or have purchased one with your property.
If you rented a spot, it could cost you £250 for example - this over a 12 month period is £3000.
So I think it is really attractive to flat purchasers to have underground parking!
Depends how expensive the flats are and where the development is. The London market is significantly different to the Newcastle market. If the flats start at £300k then £4k isn't huge value.
Why are the spaces being sold seperately? Are there sufficient spaces to serve the development or not? If there's not why is this? Is the site being over developed? Has it got Planning Consent? Does the Planning Consent have a s106 requirement/agreement that the flats need to be car free?
What is the standard of development - eg, high end with doorman etc... - as this would influence who wants parking where. Who is the target market.
In an average situation I would expect the parking to be seperated. The flat owners won't want a carpark accessed by the public so would expect these spaces to be closed off - say in the basement - with the commercial spaces above ground.
At the ed of the day the offices will likely be let out and the number of spaces negociated by the tenant from the Landlord (is the developer retaining the offices to be the Landlord?). I think that the flat buyer would expect a parking space to be included in the purchase price unless there was a reason for it not to be (s106, not enough spaces).
Probably more queestions than answers there. Might be worth clarifying the assumptions to be made on the assignment with the tutor.
Why are the spaces being sold seperately? Are there sufficient spaces to serve the development or not? If there's not why is this? Is the site being over developed? Has it got Planning Consent? Does the Planning Consent have a s106 requirement/agreement that the flats need to be car free?
What is the standard of development - eg, high end with doorman etc... - as this would influence who wants parking where. Who is the target market.
In an average situation I would expect the parking to be seperated. The flat owners won't want a carpark accessed by the public so would expect these spaces to be closed off - say in the basement - with the commercial spaces above ground.
At the ed of the day the offices will likely be let out and the number of spaces negociated by the tenant from the Landlord (is the developer retaining the offices to be the Landlord?). I think that the flat buyer would expect a parking space to be included in the purchase price unless there was a reason for it not to be (s106, not enough spaces).
Probably more queestions than answers there. Might be worth clarifying the assumptions to be made on the assignment with the tutor.
Edited by mk1fan on Monday 29th November 12:25
mk1fan said:
Depends how expensive the flats are and where the development is. The London market is significantly different to the Newcastle market. If the flats start at £300k then £4k isn't huge value.
Why are the spaces being sold seperately? Are there sufficient spaces to serve the development or not? If there's not why is this? Is the site being over developed? Has it got Planning Consent? Does the Planning Consent have a s106 condition that the flats need to be car free?
What is the type of development - eg, high end with doorman etc... - as this would influence who wants parking where.
In an average situation I would expect the parking to be seperated. The flat owners won't want a carpark accessed by the public so would expect these spaces to be closed off - say in the basement - with the commercial spaces above ground.
At the ed of the day the offices will likely be let out and the number of spaces negociated by the tenant from the Landlord (is the developer retaining the offices to be the Landlord?). I think that the flat buyer would expect a parking space to be included in the purchase price unless there was a reason for it not to be (s106, not enough spaces).
Probably more queestions than answers there. Might be worth clarifying the assumptions to be made on the assignment with the tutor.
Guys, many thanks for your replies.Why are the spaces being sold seperately? Are there sufficient spaces to serve the development or not? If there's not why is this? Is the site being over developed? Has it got Planning Consent? Does the Planning Consent have a s106 condition that the flats need to be car free?
What is the type of development - eg, high end with doorman etc... - as this would influence who wants parking where.
In an average situation I would expect the parking to be seperated. The flat owners won't want a carpark accessed by the public so would expect these spaces to be closed off - say in the basement - with the commercial spaces above ground.
At the ed of the day the offices will likely be let out and the number of spaces negociated by the tenant from the Landlord (is the developer retaining the offices to be the Landlord?). I think that the flat buyer would expect a parking space to be included in the purchase price unless there was a reason for it not to be (s106, not enough spaces).
Probably more queestions than answers there. Might be worth clarifying the assumptions to be made on the assignment with the tutor.
The project is Cardiff city centre & properties are selling for approx £330,000.
It isn't the biggest project and is being mainly assessed on producing a detailed residual valuation and different cashflow approaches. Therefore the planning permission business wouldn't be of much use, it is however new to me and something I will be looking into for other modules. Cheers.
I havent been given much on the apartment specs to picture whether it's high end or not, but from the price I would imagine security foor and concierge? There are 41 car parking spaces for 28 apartments and the office space. The allocation is set as 32 being accomodated in the basement and 9 on the surface.
Thanks again for any input you can provide.
Regards,
Tim.
I wouldn't dismiss not needing to know the Planning information / situation. At the very least asking the tutor about it and qualifying it should get a few more percentage points.
From a Professional point of view you need to know what, if any parking restrictions are being placed on the development by the Planning Consent. It seems that the 32 basement spaces would be ideal for the apartments with 4 spare for visitors or to be offered with the 'penthouses'. How are the flats made up? All 1-bed or Studio? Mixture of Studio, 1-bed and 2-bed? All 2-bed?
The 9 surface spaces to be included with the offices. Has the office space been designed to be let as a whole or seperate areas or both?
At the end of the day, city centre businesses expect parking to be a premium and not to expect a parking space for each employee. 9 spaces would allow for three visitor spaces and the remaining 6 to be allocated according to how much sqft the tenant has leased.
From a Professional point of view you need to know what, if any parking restrictions are being placed on the development by the Planning Consent. It seems that the 32 basement spaces would be ideal for the apartments with 4 spare for visitors or to be offered with the 'penthouses'. How are the flats made up? All 1-bed or Studio? Mixture of Studio, 1-bed and 2-bed? All 2-bed?
The 9 surface spaces to be included with the offices. Has the office space been designed to be let as a whole or seperate areas or both?
At the end of the day, city centre businesses expect parking to be a premium and not to expect a parking space for each employee. 9 spaces would allow for three visitor spaces and the remaining 6 to be allocated according to how much sqft the tenant has leased.
Gassing Station | Homes, Gardens and DIY | Top of Page | What's New | My Stuff