What are the average annual expenses for a Public parking lot owner?
Curious if any of you have experience with public parking lots. Wanting to get an idea of monthly/annual costs to operate. Anyone here with experience?
[{"id": "ipejx3h", "text": "Really can depend on the market and they way you run the lot but I\u2019ll get some line items and share when I\u2019m back in the office", "replies": [{"id": "ipekdi1", "text": "thank you, I would appreciate any input you have.\n\nA little more background - 6 lots totaling around 70,000 SF in high density downtown area around arenas, large events, etc.\n\nI am looking at $50k per month to operate the lots, but unsure how realistic that may/may not be.", "replies": [], "depth": 2}], "depth": 1}, {"id": "ipf6s4i", "text": "You really have huge variability in expenses based on    location, type of lot, and how it is operated.\nI had one street level parking lot in Boston that had the main expenses in the following order: an a part time onsite security guard, real estate taxes, snow plowing, credit card swipe fees, electric, property management. This ignores depreciation for resealing, painting or resurfacing the lot.\n\nAnother lot was 4 stories and had parking as an amenity of an attached office building so there were minimal credit card swipe fees since it was rolled into office rent. Taxes weren't separate since it was one parcel. There was a once a week parking lot sweeper expense. Electric expense. And this ignored the massive concrete restoration work that would need to be done as the structure becomes older.\n\nIf you are in a high density city you might be employing valet staff to maximize the cars you can double and triple park in the space, have insurance for valet and be doing a ton of credit card swipe fees, and have much higher real estate taxes.", "replies": [{"id": "ipf7tao", "text": "thank you for your input. These are in southern California, so no snow....\n\nI know the property tax numbers as those have fixed increases each year. They don't have security as all of these are single level outdoor lots. They do have attendants, but I need to find out more about \"valet\" services, credit card fees and electricity.\n\nI am ignoring the costs for resealing, painting or resurfacing the lots as these are a capital expenses. I do have a 3 % reserve based on income though.", "replies": [{"id": "ipfcyyy", "text": "I'm assuming single level is the same as surface parking. I left out general liability insurance that is creaping up in expenses.\n\n3% reserve fee seems reasonable for surface parking assuming the lot is not in horrible condition and this is not ocean front parking where ocean spray will eat through concrete and rust out metal faster than the north dumping salt on the roads.\n\nValet parking would also be a boost to revenue so it is only really implemented if it pays for itself. You might do valet if it is consistently near major events and can justify paying staff and insurance for those events to double or triple park cars.\n\nThere other minor thing to consider with how the parking payments are enforced with towing and parking gates and auditing exit gate arm opening vs revenue collection or auditing valet skimming cash parking payments, but that is more operations concern.", "replies": [{"id": "ipffu3u", "text": "yes, surface parking.\n\nThank you for your input and insight. I appreciate it.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]