02-28-2017, 01:57 PM
(This post was last modified: 02-28-2017, 02:20 PM by Viewfromthe42.)
The Altus Group numbers are for free-standing parking garage structures, near as I can tell from your link, and it's absolutely cheaper to build the Sunlife structure at John and Caroline compared to the 144/155 integrated parking structures right next door. If you scroll to the next page and include a few more cities like Ottawa and St. John's, the cost range for those structures widens to $50 to $135 per square foot, or $17K to $45K for a much simpler structure than integrated parking.
The VTPI numbers are USD (so multiply by 1.33), and right below the costs they estimate that the design and other non-concrete costs to be 30-40% of the per-space cost (so multiply by 1.3-1.4), for a total CAD cost of 1.75-1.85 with no profit margin added.
A developer will not get financing for a project without an overall rate of return on all construction, from suites to add-on finishes to commercial units to parking. When you make the parking contribute nothing towards profit, it means everything else has to contribute more than it's fair share, so if there is a lesser profit margin on structured parking, it means that non-car users are paying more so as to still yield the same overall profit rate. Similar idea to how the cost of a store's free parking lot is paid for through increased prices, prices paid both by drivers who use the lot, as well as transit users, cyclists, taxi shoppers, and walking shoppers. You can agree or disagree that this is a problem, but it is absolutely a subsidization.
As for the profit margin, a quick glance around shows that different years and market competitiveness show profit margins as high as 25-35%, and as low as 5-10%. So to take the low end of the VTPI and add in profit margins and a good amount of unaccounted-for costs, the spot cost minimum goes to the $35-40K range.
A local example could be the Benton garage. $15,000,000 to finance the build, 500 spaces, or $30,000/space for a still-simpler-than-condo parking integration with zero profit margin.
The VTPI numbers are USD (so multiply by 1.33), and right below the costs they estimate that the design and other non-concrete costs to be 30-40% of the per-space cost (so multiply by 1.3-1.4), for a total CAD cost of 1.75-1.85 with no profit margin added.
A developer will not get financing for a project without an overall rate of return on all construction, from suites to add-on finishes to commercial units to parking. When you make the parking contribute nothing towards profit, it means everything else has to contribute more than it's fair share, so if there is a lesser profit margin on structured parking, it means that non-car users are paying more so as to still yield the same overall profit rate. Similar idea to how the cost of a store's free parking lot is paid for through increased prices, prices paid both by drivers who use the lot, as well as transit users, cyclists, taxi shoppers, and walking shoppers. You can agree or disagree that this is a problem, but it is absolutely a subsidization.
As for the profit margin, a quick glance around shows that different years and market competitiveness show profit margins as high as 25-35%, and as low as 5-10%. So to take the low end of the VTPI and add in profit margins and a good amount of unaccounted-for costs, the spot cost minimum goes to the $35-40K range.
A local example could be the Benton garage. $15,000,000 to finance the build, 500 spaces, or $30,000/space for a still-simpler-than-condo parking integration with zero profit margin.