12 May Cities Debate Lifting Parking Minimums for More Projects May 12, 2021 By sma Commercial Real Estate News, Property Investment, Property Maintenance, Property Management apartment, building renovation, multi-family property, real estate trends 0 CITIES DEBATE LIFTING PARKING MINIMUMS FOR MORE PROJECTS May 12, 2021 | Property Maintenance, Property Management, Property Investment, CRE News | real estate trends, building renovation, multi-family property, apartment Parking capacity has been an issue of debate among city developers for years. Not having enough spots leads to more cars parked on the street, crammed lots, and frustrated drivers. However, now the topic on what’s the right amount of parking has shifted the other direction. Officials in large metropolitan areas are looking at reducing parking throughout their cities to allow for more room for developments. The Reason for the Shift Lifting parking mandates is an idea that’s been introduced throughout the years and as far back as 2009 in Minneapolis. The city reduced the requirements for parking around smaller commercial buildings, and noticed how they were able to optimize the otherwise unused space. The main positive that supporters of the new movement highlight is that less room for cars means more space for needed affordable housing projects. Especially as people move away from cars and towards buses or other forms of greener transportation, the need for parking has decreased. Adjusting the rules for zoning is catching on in both the United States and Canada. Twin Cities Erasing Parking Minimums Since Minneapolis became one of the first major locations to enact new parking laws, St. Paul has also continued to adapt regulations. In 2015, Minneapolis dropped the requirement for stalls per apartment from 1 to around .76. Developers could further drop the amount of spaces they offer by investing in public transit. Not needing to put in as many stalls can help lower property costs, especially with structured parking that can tack on an extra $30,000 per stall. While some are concerned that not having minimums will drive people away, others point out that property owners still include ample parking for their businesses. California Cutting Down Parking The Golden State is another trailblazer in lifting their parking requirements for commercial buildings. Higher construction costs as a result of meeting parking minimums has created a severe housing shortage in urban areas. In April, Councilmembers introduced Assembly Bill 1401 that would prioritize people and not vehicles. Currently, two-thirds of California’s cities require that multi-family housing builds two spots per home. This even applies to low-income locations where the majority of residents may not be able to afford a car. San Diego, Oakland, San Francisco, Berkeley, and San Jose have all signed new legislation to break from the traditional parking rules. Much like in Minneapolis, property owners will still be able to design for as much parking as they need, but the opportunity for more housing is greatly widened. Edmonton Paves the Way in Canada In June of 2020, Edmonton made headlines as it became the first major Canadian city to drop its parking minimum requirements. Data had pointed out how the city left nearly half of its parking surfaces sitting empty during peak hours. The surplus meant that builders needed to pass on the added construction costs to tenants, driving up rent prices. Now, like cities in the U.S. have done, Edmonton gave the choice back to business owners on how they should plan for accommodating vehicles. Maximum rules are still in place around downtown and main street areas, along with transit-oriented centers. Being a major market, Edmonton has provided a blueprint for other cities in Canada and even the U.S. Victoria Looking to Follow Suit Fast forward to May of this year and Victoria is looking at joining in on reducing parking. While there is a focus on reducing housing costs, lawmakers say less paved surfaces will allow for more green spaces. This will help support the city’s climate goals that have been set for the future. If approved, a grant by the Local Government Development Approvals Process Review Program would go towards addressing the city’s parking needs. National Property Inspections, Inc. can help with your commercial inspection needs. Schedule an appointment today! Comments are closed.