The commercial property rental market may be taking a dip, but judicious landlords are turning to one niche sector that’s motoring ahead despite the downturn. Park Let, the UK’s largest parking space letting agent has seen an 85% increase in enquiries from developers and property investors who want to discuss letting out parking spaces separately from mainstream commercial premises. Although most parking spaces can’t compete with prime commercial property on a price per square foot basis, many landlords can earn additional revenues by considering their parking spaces as a completely separate entity.
Although just under a fifth of Park Let’s clients are commercial landlords, they drive nearly a third of the company’s revenue owing to the fact that their parking spaces are usually in prime locations and command premium rates.
Average rental valuations across the UK
Within London the average rental value of a parking space is £1,848 per annum rising to nearly £7,000 in premium locations. Outside of London, the average price is £1,019 with Liverpool (£1,476), Nottingham (£1,380) and Manchester (£1,308) all driving the highest rents behind the capital.
Luke Kelly, managing director, Park Let said: “We prefer to deal in the monthly rental market as our landlords favour seeing the longer-term value that we can add. We act as any other property agent would: we agree the terms and conditions, draw up the contract, market the spaces and collect the monthly rent, leaving the landlord to focus on their core business.”
Not just a recession-proofing measure
Park Let believes that evaluating the potential in parking spaces shouldn’t only be a decision taken in a recession. Each potential tenant may use a building for a different purpose so it doesn’t always make sense to have a square footage / parking space ratio – letting out parking spaces independently can be of a longer-term benefit to a commercial landlord too.
Luke Kelly, managing director, Park Let said: “We created the marketplace for the monthly letting of parking spaces back in 2004 and since then our clients have included individual homeowners with a single driveway, national car parks operators and everyone in between. However the substantial increase in the number of large and smaller commercial landlords contacting us to enquire about letting parking spaces is quite a recent phenomenon.”
For an estimate of how much a parking space is worth visit Park Let’s new parking space pricing tool at www.parklet.co.uk/parking-rental-price-guide.aspx.