Deals Lag As Market Looks for Value of Parking Garages During Pandemic

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CoStar News – Deals Lag As Market Looks for Value of Parking Garages During Pandemic

April 8, 2021
By Mark Heschmeyer
Co Star News

The commercial real estate industry’s consensus view of parking lots and garages, one of the hardest-hit property sectors during the pandemic as commuters have mostly worked from home, has yet to emerge a year later.

Sales for the real estate tumbled as they did for all property types and so far haven’t shown much of a consistent rebound. Deals in 2020 totaled about half the average amount in each of the prior three years, according to CoStar data.

The fourth quarter saw the most sales, totaling $386 million. However, that quarter was sandwiched in between the previous quarter of just $1 million in sales and so far only $42 million in rst-quarter sales, CoStar data shows.

Centerpark is one of those parking operators expanding while pricing is low. Based in New York, the company has owned and operated parking garages for three decades, through multiple market cycles. In the fourth quarter, Centerpark acquired two garages in the 200 block of East 46th Street for a combined $16.5 million, according to CoStar data.