21
The parking ratio talk that flipped my whole underwriting view
Had coffee with a property manager in Austin last week who runs a 120,000 sq ft office building. He told me they lose at least 3 serious tenants a year because the parking ratio is 3.2 spots per 1,000 sq ft and they need 4.5. I always brushed off parking as minor, but he showed me the actual lease fallout numbers and it hit different. Has anyone else seen a deal die purely on parking math, or am I just late to this?
1 comments
Log in to join the discussion
Log In1 Comment
christopher_coleman173d ago
Three point two per thousand and they're losing tenants over it? That's not a parking ratio, that's a going out of business plan dressed up in a concrete slab. I once watched a deal fall apart because the buyer counted 47 spots and the seller counted 48, so yeah, people are weird about this stuff. Your guy losing 3 tenants a year means he's basically running a discount valet service with an office attached.
2