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Value Impact Of Parking Across The Street

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NachoPerito

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Jul 25, 2012
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Certified General Appraiser
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Washington
I need some help finding an approach for this scenario.

this is related to eminent domain. A new street is splitting a retail building from its parking lot so the customers would have to walk across a public street. I am looking for a way to analyze the before and after property value due to this new street. Besides the obvious loss in property square footage, I am looking at examples of value loss because parking is across the street.

A couple of tidbits:
-The number of parking stalls is still adequate for the retail use.
-There will be a crosswalk close to the parking lot
-Vehicles will be stopping at a stop light
-This is a convenience store

Thanks for your help.
 

hastalavista

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May 16, 2005
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California
It would seem that a rent differential between those with on-site parking vs. those without might provide insight to how much that parking is worth.
 

NachoPerito

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Jul 25, 2012
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Certified General Appraiser
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Washington
It would seem that a rent differential between those with on-site parking vs. those without might provide insight to how much that parking is worth.

Agreed, finding examples of this rent loss is the hard part. I scoured the appraisal journals to find something similar, but haven't found anything.
 

Rick Kulman

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Jan 31, 2003
Professional Status
Certified General Appraiser
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New Jersey
What is the difference in rent for a convenience store with parking versus one with no parking? Take the following into consideration:

How much further is the walk to parking - 60 feet 100 feet 150 feet 200 feet?

How wide is the new street including sidewalks?
How far to the crosswalk?

Can the new parking lot be accessed and exited by vehicles from both directions, or will there be no left or right turns?

Can others use the lot across the street? If yes, what’s to stop them from utilizing the parking stalls to the detriment of the convenience store? Do you need a guard or watchman and if so what’s the salary? Has to have a bearing on the before and after rents.

Who wants to wait for a light to change before crossing a street – especially in bad weather

Compare rents in areas with on site parking and street parking

Is the property in compliance with all zoning and land use regulations or does it become non conforming?

Does the H&BU change as a result of the new road?
 
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Michigan CG

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Nov 1, 2006
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Certified General Appraiser
State
Michigan
I am thinking that the Highest and Best Use changes. If I want a Pepsi and see a convenience store I pull in, park right in front, get out of the car and walk 60 steps into the store. Who is going to go into the parking lot, wait at a crosswalk and walk across the street for a Pepsi?

I would think that a change in use to maybe a lawyer's office, accountant, salon or maybe some other place that you have to go into would be better suited for that type of parking.

Obviously we know nothing about your location but here no one is going to go through all of that for a Pepsi when another convenience store is coming up in a mile or so.
 
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NachoPerito

Senior Member
Joined
Jul 25, 2012
Professional Status
Certified General Appraiser
State
Washington
I am thinking that the Highest and Best Use changes. If I want a Pepsi and see a convenience store I pull in, park right in front, get out of the car and walk 60 steps into the store. Who is going to go into the parking lot, wait at a crosswalk and walk across the street for a Pepsi?

I would think that a change in use to maybe a lawyer's office, accountant, salon or maybe some other place that you have to go into would be better suited for that type of parking.

Obviously we know nothing about your location but here no one is going to go through all of that for a Pepsi when another convenience store is coming up in a mile or so.

You may have a point there, although I was overstating it a bit when I said convenience store. It is more of a typical large format retail store.
 

AMF13

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Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
It is more of a typical large format retail store.

So, they'll do plenty of walking inside the store too. Maybe not too bad of a deal. :shrug:
 

Meandering

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Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
Look in an older downtown area for stores that have parking lots at the rear, and stores that rely on customers to park in a municipal garage, off site. You might find good data in that.

.
 

DTB

Elite Member
Joined
Jun 11, 2004
Professional Status
Certified Residential Appraiser
State
Illinois
IMO it will have a very significant impact on the rent as I think the business will suffer significantly.

Many well established businesses spend a butt load of $ to improve their customers' shopping experience with them.

This change to the shopping experience is....brutal.

I don't think the older downtown type comparison is significant enough. Those stores have overcome the parking situation. Will this store? The next tenant? Maybe, if the rent is low enough.
 

AMF13

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
Look in an older downtown area for stores that have parking lots at the rear,

This sounds like downtown Reseda. But all the stores with parking in back also have entrances in the back.
I'm a back door man! :peace:
 
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