You’re not alone if you think parking is important. A packed parking lot makes shopping unbearable and managing a workplace without your own spot is just not on. Experienced commercial property investors think the same thing.
Car parking matters in commercial property because it matters to businesses. It keeps commercial tenants happy and ensures customers keep coming back. As these factors can indirectly impact property values, investors should first look at properties with enough car parking.
But still, car parking goes under the radar of many new commercial property investors. Here’s why it matters in commercial property investment.
Customers need comfort and convenience
Car parking plays a big role in the success of retail properties.
Customers need ease, comfort and convenience when visiting a store. So, arriving without the challenge of finding and navigating busy parking lots immediately puts them in the right frame of mind to enjoy their shopping experience.
Parking should be configured so traffic flow is easily understood by drivers. The frustration of parking lot traffic jams needs to be avoided. And car bays should have enough width for customers to park and to simply get shopping bags and large boxes into an open car door.
With the heat of summer and the wet of winter, retail properties will ideally have undercover or sheltered parking. This goes for walkways, too.
And critical to the success of a retail property is the location of its car park.
Is it near the store entrance? Do customers have far to walk or many stairs to navigate?
Since the digital age of retail, customer comfort has never been more important for bricks and mortar stores. It’s all about comfort and convenience.
Managers and executives need priority parking
There’s no magic number for the number of car bays needed for office properties. But you can easily calculate the minimum that is necessary.
All executives and managers should have their own bay and they should be located a short walk to the office’s entrance. There should also be adequate car parking for expected visitors (i.e. clients, suppliers, etc).
For a 200 sqm office premises, holding enough space for, say, 8 employees, a minimum of seven parking bays would be ideal. This would be enough space for two executives, three managers and two visitors, keeping everyone happy (except, perhaps, the receptionist).
Industrial property parking
Warehouses, logistics centres and manufacturing buildings are a different kettle of fish. These industrial properties need enough room for heavy vehicles to manoeuvre, without impeding the access of regular-sized vehicles.
And as today’s industrial property is typically more than just a big tin shed, prime grade offices can be found attached to the premises. So, the same conditions for office properties applies to many of these assets. These properties need sufficient parking for executives and management to park their vehicles, as well as for incoming visitors and suppliers.
Security for commercial car parking is key
Your commercial tenant will prioritise secure car parking bays. This is particularly true in prime grade assets where parked vehicles are likely to be worth a pretty penny.
Whether in a secure underground parking lot, a gated carpark or merely car bays which can be seen by CCTV, ensure your asset has the appropriate security for your tenant.
A huge number of factors need to be considered before investing in commercial property. Car parking is a critical one but many more exist. This is why many invest in a structured commercial property syndicate: it removes the hassles of a complex investment.
For more information on how you can invest alongside us in commercial property, get in touch with Properties & Pathways today.