For many of our Downtown Denver clients the question of parking never comes into question. The home in LoHi has a detached garage or a driveway, the new modern Downtown Denver townhome has below ground parking, the residence comes with one parking space.
But for newer Downtown Denver high rise buildings today, and most likely moreso in the future, the parking is optional.
When Glass House in Riverfront Park was first sold ever residence came with one parking spot. Glass House Penthouse residences came with two. The remaining spots were offered to anyone who bought a two bedroom Glass House residence and they sold out FAST!
Now SPIRE takes the car option to be car optional. Each of the residences were sold without any parking and then a homeowner could add in a parking space (or two for a two bedroom) or they could pass entirely and save anywhere up to approximately $55,000. SPIRE also offered scooter or motorcycle parking so if you did want to pass on the car spot you could get one of these two wheeler spots for much less.
We wrote some time ago about the various strategies in the selection and price value of different spaces (See that post here) but this particular post was to share a pretty interesting idea one of our folks has followed.
They took their residence, in this case a two bedroom, and purchased two parking spaces with the residence. The funny thing is, they don’t need them. Scooter, bicycle, or car share programs meet the need for this Downtown Denver condo resident. So why buy two spaces?
- First… the initial purchase period offered what they determined would be the lowest price of entry. Parking may or may not become more valuable but initial spaces sold at the Glass House for $25K, then $35K, then $40K. Resales, if there were any on the market to price are anyone’s guess. SPIRE and many other Downtown Denver lofts are experiencing price increases as well. Fell free to call us to get a parking price analysis.
- Second, limited supply and great growing demand means a fairly reliable rental market for them. And they have shared that renting it out has yet to be a problem. Rents of up to $200 per space are common in their building.
- They don’t want to be landlords but the parking space is a fairly maintenance free area as it is part of a limited common element. Not too much can go wrong with a parking space but it is recommended to make sure your lease is reviewed by an expert to make sure it puts the renter under the same HOA terms and rules and all that wise legal stuff. But overall… maintenance free.
So their story is about renting out their parking spaces to cash flow and cover their HOA fees. Why even bother if they don’t have a car. In their case the goal was resales or other events they can’t foresee down the road that might make them need a space or two.
Their story was pretty interesting… they live the car optional lifestyle with a bit of strategy. Who knows what those spaces might rent for down the road but we like their creativity.
Cheers and when it’s time for you to select your Downtown Denver condo or loft remember to give any of us at New Era Realty a call so that we can assist you and share our experience with you.
By the way, the Gothamist reported the highest parking rental in NYC of $1,200 per month at the Empire. Who knows, maybe one day our friend will be able to rent out his parking to cover his mortgage.
303.991.9878 or 800.392.1950 or you can
