What is the Value of Parking?

Today, I had a former customer of mine as me whether I thought they should buy a parking spot near their property (which does not have parking). They were offered the spot at $30,000. $30,000 has been the standard asking price for some time...years in fact. I have seen newer construction charge more, or try to, in the past. At one point, some premium luxury buildings were offering prime spots at $35-$40,000. However, it is typically $30,000. What value does that add to the property?

This is hard to say. Fewer and fewer people want properties without it, but how much does it raise the value? I am showing condos tonight where one condo is charging only $20,000 for their condo with parking over another one in the building, an identical unit, that has none. I think if someone wants more buyers to look at their place, a parking spot does that. I think if you need to sell this year when you bought in the last two years, you may need that $30,000 just to bring to the table to get out of a property now worth less than purchased.

However, if you are not moving soon and are buying parking as an investment in the future value of your property, it is a good investment...even if you don't need it. You can rent it for $250 or more a month. Would I pay #30,000 now? That depends on the location but I think there is still some wiggle room to negotiate price.

But truly, the most expensive real estate in Hoboken in parking space.