Profit by Investing in Parking Lots and Structures
- Profit by Investing in Parking Lots and Structures -
With parking becoming a growing issue in many urban centers, investors have realized there’s a great opportunity to profit by investing in parking lots and structures.
Parking provides an investment that offers flexibility and opportunities for future expansion while keeping the existing footprint. After the initial investment, there is often limited overhead.
And investing in parking lots and structures in an evolving cityscape allows you to speculate on future development while reaping the rewards of parking profits.
Here are some tips to help you when Investing in Parking Lots and Structures :
Much as with any other investment, studying the market in your region is vital. Parking lots and structures require proximity to major shopping centers and business centers.
Think of areas where you’ve paid to park; that will provide you with examples of places that could and probably do support parking lots and structures. Be sure to examine traffic flow, which has a big influence on profitability, to establish demand for parking in specific areas. The results of your research will influence your business plan and investment strategy.
Get Your Finances in Order
Whenever you invest, it is important to have your financing options in place before you buy. Investors should be prepared with a business plan that clearly outlines how they intend to maximize their capital investment in a specific property.
Set the Specifics of Your Search
With your finances in order and some research done, you can now begin the investment planning process. By having your finances in order, you will have established your price point for purchase.
By researching the market for parking and parking lots, you should be able to establish general areas for your search. But, most importantly, you need to decide what type of facility you wish to purchase.
Ask Yourself These Questions
Are you looking for a lot or a parking structure? Note that lots typically have lower maintenance costs than structures do. Is the property subject to any zoning restrictions? Will the lot or structure allow for future growth? Will development in the area cause the property to appreciate in value over time? The answers to these questions will influence your search process.
Start Your Search in the Right Way
This can be complicated by the fact that most parking lots and structures are sold without ever being advertised via MLS® or other obvious places. In this case, the use of a real estate sales agent is critical.
Be sure to select one who specializes in commercial real estate sales.
Once you’ve selected an agent, clearly identify what areas you are interested in investing in and be sure to discuss your investment objectives.
Commercial real estate specialists have the tools and resources to rapidly search the market for ideal parking lots and structures that meet your specific criteria.
They can research unlisted properties to see whether there is any interest in selling, and they have a wealth of contacts in the industry to quickly identify sites for sale.
Picture Credit: Flickr
Contact a San Antonio, TX Commercial Real Estate Expert:
Contact Luke LeGrand, ePRO via email @ firstname.lastname@example.org or call 210-843-5853
or Link LeGrand, CCIM via email @ email@example.com or call 210-789-5465