Who here owns them? I came across a piece of land that I am going to convert into a commercial parking lot until I can build multi units on it. Anyone know what kind of cap rates these are getting? How expensive they are to maintain, etc, etc…
I’m not talking about some 5 story concrete and steel super duper metered garage. We’re talking a flat 70x120 lot that I’m going to flatten, pave, and open up for shop. Those costs I can derive on my own I’m just looking for what kind of returns are “average”. Thanks!
A parking Garage is on average $20,000 per parking space to build. A flat parking lot like what you’re talking about will be much less. The only expenses I know of will be the cost of permits, leveling and paving. Obviously it will be more if you put a fence or parking space bumpers (the concrete bars that cap the end of each space), or other devices.
Once built, the maintenance is very minimal. After 5 to 10 years (depending on your location) you will more than likely need to re seal the lot again.
How do you plan on profiting? Will there be a gate, meters, or the old honor system drop box?
Also, don’t forget to account for the insurance. Lots of liability potential with these.
GooD LucK! :beer
I plan to lease the spaces on an annual basis. Treat the lot just like I do my properties. Annual leases, mail the check to my PO Box by ‘x’ date.
I got my bids in, :shocked cheaper than I had ever imagined. To raze the site, level it, put the gravel down, etc is going to cost about 12k for turn key. I budgeted this at about 30k. Maybe I’m in the wrong business :banghead. I’ll let everyone know how it goes. Thanks