Financing Parking Facilities

The level of knowledge concerning the financing of parking facilities is high among private parking operators and owners. Internal growth and new projects would not occur, if parking companies were not thoroughly familiar with the ability to finance new projects and acquisitions, at advantageous terms. Understandably, each private parking company jealously guards not only its source of borrowed or equity funds but also the methodology of the financing used. The vast majority of new parking projects, however, are planned, financed, and owned by developers, industrial companies, and muni­ cipalities. While each of these categories of parking facility owners have knowledge of their respective methods and sources of financing for general corporate or municipal purposes, the level of expertise concerning specifically the financing of parking facilities is sadly lacking. If for no other reason, both private corporations and munici­ palities frequently include the cost of a new parking project as part of an overall financing package. Developers usually include the cost of required parking facilities within the overall project development financing. Municipalities frequently include the cost of a new parking garage with the financing of new parks or street improvements. With the cost of financing new multilevel parking garages ranging as high as $30,000 per space, many private and municipal owners are realizing that to provide adequate parking is an expensive necessity. Developers now realize that providing the necessary parking for mixed-use projects is a significant portion of their total project costs.