On January 9th the Wall Street Journal featured a story about parking promoted in listings and included contributions by Realogics Sotheby’s International Realty (RSIR). Reporter Sanette Tanaka cited research by Zillow that Seattle-area brokers mention parking 41.3% of the time in their listing descriptions. The only regions where parking is mentioned more is in Riverside, CA (45.1%) and Denver (44.1%).
Dean Jones, President & CEO of RSIR opined many of the residents moving into the city are suburbanites who are accustomed to having at least one car. He says second stalls can fetch $50-$60,000 upwards of $100,000 in some situations.
“The irony is that many times the parking space is worth more than the car that’s parked in it,” says Jones. “You drive through these condominium parking garages during the day and realize how many cars are not even being used. I suppose that’s a primary benefit of living downtown – you are liberated from the automobile in many cases. But not having parking impacts the marketability, especially for more expensive homes.”
Jones points to a current two bedroom listing at Fifteen Twenty-One Second Avenue, a popular condominium that is asking $1.7 million. The marketing copy promotes protected views, adjacency to Pike Place Market, penthouse-styling and there it is in bold print: “Two Car Parking.”
“We had several prospective buyers stating they are only interested in condominiums that have two stalls,” adds Jones. “It’s not always because they have two cars but they also like the convenience to have friends or family use the stall when visiting. It’s also an investment.”
Also quoted in the article is William Justen, a former City of Seattle planner and developer who has lived and worked in downtown Seattle for more than three decades. He suggests brokers need to play up parking for out-of-towners moving to Seattle especially for those coming from markets like Boston or New York City where parking is not the rule but truly an exception. He should know as he lived for eight years at the Seaboard Building, a historic office building that was converted into luxury condominiums in 2001 but also doesn’t offer any parking.
“The reality is most everything we desire can be found within walking distance by living downtown nowadays,” muses Justen. “I easily put more miles on my bike than I do in our car each year and I like it that way.”
Not all new buildings being developed in Seattle include parking on a one stall to one unit ratio and according to Justen the new city code doesn’t always require it. But in a city that has had its residential population grow 70% since 1990, space and parking remains a premium. Case in point Justen created work studios within his latest project at Fifteen Twenty-One Second Avenue to make good use of otherwise dead corners in the above grade garage. He says the typical size is 150 SF and sell at a premium above the value of parking because residents can occupy them legally as an office, fitness or art studio or even wine cellar.
“I use my 350 SF work studio as an office outside my home so I don’t need to commute other than in the elevator,” says Justen. “Many of these studios are finished as nice as the condominiums upstairs.”
