3 ms·

Subterranean parking costs $40-70k per stall A developer can only build if they can achieve a 5-6% return on total costs So 5% of $50k = $2,500 of income, or

Subterranean parking costs $40-70k per stall A developer can only build if they can achieve a 5-6% return on total costs So 5% of $50k = $2,500 of income, or assuming 30% expenses, $2,500 / 70% margin = $3,500 of income needed per stall per year, or almost $300 per month per stall of underground parking provided Surface parking is less expensive, like $10-20k/stall but you get the point.

dont__panic 4y ago
Where do the surface parking costs ($10-20k/stall) come from? That's astonishing to me -- I would guess that a dirt driveway can be almost free, a gravel driveway can be close to free, and a paved driveway costs a few hundred per car space.
- frenchy 4y ago
  Land value. Where I live, 80% of the cost of our property is the land itself, and only 20% is the building or "improvement".