{"id":15696,"date":"2025-01-31T11:48:49","date_gmt":"2025-01-31T18:48:49","guid":{"rendered":"https:\/\/www.neighbor.com\/storage-blog\/?p=15696"},"modified":"2025-02-20T16:41:23","modified_gmt":"2025-02-20T23:41:23","slug":"how-much-to-charge-for-a-parking-space-in-denver","status":"publish","type":"post","link":"https:\/\/www.neighbor.com\/storage-blog\/how-much-to-charge-for-a-parking-space-in-denver\/","title":{"rendered":"How Much to Charge for a Parking Space in Denver, CO: A Guide for Apartment Building Owners"},"content":{"rendered":"\n

Neighbor.com contacted 20 multifamily properties<\/strong> across Denver (Central Business District, Denver International Airport, Denver Northeast, Denver South Central, and Denver Northwest). <\/p>\n\n\n\n

The purpose? <\/em>To gain insight into the resident parking prices<\/strong> set by local apartment building owners. <\/p>\n\n\n\n

Recent data shows that 50% of multifamily properties across the U.S. are mispricing their resident parking<\/strong>, and this misstep isn’t without consequences. <\/p>\n\n\n\n

When property <\/strong>owners\/property managers set arbitrary resident parking prices, this decision puts the property at risk of losing tens of thousands in NOI<\/strong><\/a> and can even impact resident satisfaction. <\/strong><\/p>\n\n\n\n

So, when answering the question, “How much to charge for parking space in an apartment complex?<\/em>” property owners should seek out hyperlocal data<\/strong> (like the data we’ll provide in this article). <\/p>\n\n\n\n

Findings of Neighbor.com’s Denver, CO, Parking Research <\/h2>\n\n\n\n

From the Central Business District to Denver Northwest, resident parking prices can vary by up to 300%, even if two properties are located within a city mile of one another. <\/p>\n\n\n\n

Another surprising discovery is that parking operators (in and outside of Denver, CO) charge 162% more, on average, for covered parking spots than multifamily property owners. <\/p>\n\n\n\n

Most often, these gaping price discrepancies<\/strong> indicate that a property lacks the hyperlocal data needed <\/strong>to make informed pricing decisions. <\/p>\n\n\n\n

From the perspective of parking experts like Ralph Johnson, the National Parking Association’s “<\/em>40 under 40<\/em><\/a>,” there are <\/strong>very few <\/em><\/strong>reasons why multifamily property owners should charge 70% less for parking than a parking operator in the same neighborhood. <\/strong><\/p>\n\n\n\n

Outside of a lack of data, the parking rates of properties within the same market may vary because of differences in coverage<\/strong>, space type<\/strong>, assignment status<\/strong>, etc. <\/p>\n\n\n\n

For instance, if one property offers residents garage parking while the other offers surface lot parking, the former property will likely charge residents a higher monthly rate (if they charge for parking at all).<\/em> <\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n

How Much Should I Charge for a Space in an Uncovered Parking Lot? <\/h2>\n\n\n\n

Types of uncovered parking options: <\/em><\/strong>Uncovered surface lots, rooftop spaces in multi-level parking garages, etc. <\/em><\/p>\n\n\n\n

Of the 20 properties sampled, 50% currently offer uncovered parking to residents–but only half of this 50% charge residents additional fees to park in uncovered lots; the remaining 50%, by contrast, offer free on-site parking as an amenity. <\/p>\n\n\n\n

Of those properties that charge for uncovered parking, the average uncovered parking rate for Denver, CO, is around $56\/month<\/strong> (Note: This $56 is a separate, unbundled fee that is charged on top of monthly rent fees, utilities, storage, etc.) <\/em><\/p>\n\n\n\n

Market Name <\/strong><\/td>Raw Average <\/strong><\/td>Charged Average<\/strong><\/td>% of Properties That Offer Uncovered Parking<\/strong><\/td>% of Properties That Charge for Uncovered Parking <\/strong><\/td><\/tr>
Denver<\/strong><\/td>$28.00\/mo<\/td>$56.00\/mo<\/strong><\/td>50%<\/td>50%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

*Definition of “Raw Average”: This average includes properties that offer residents free parking (whether uncovered or covered), as well as those properties that charge residents additional fees for a given type of parking space. <\/em><\/p>\n\n\n\n

**Definition of “Charged Average”: This average excludes those properties that offer free parking. It only represents those properties that charge residents additional fees to park in their on-site parking facilities.<\/em><\/p>\n\n\n\n

How Much Should I Charge for a Space in a Covered Parking Structure?<\/h2>\n\n\n\n

Types of covered parking options:<\/em><\/strong> Private carports, enclosed\/open-air parking garage spaces, private residential garage spaces, etc. <\/em><\/p>\n\n\n\n

Of the 20 properties sampled, 95% of Denver property owners offer one or more types of covered parking<\/strong>. Of those 95% of properties that offer it, 100% charge residents to park in these covered parking spots.<\/p>\n\n\n\n

Of those properties that charge for covered parking <\/strong>(private carports, parking garage spaces, private garage spaces, etc.), the average covered parking rate for Denver is around $60\/month. <\/strong> <\/p>\n\n\n\n

Market Name <\/strong><\/td>Raw Average <\/strong><\/td>Charged Average<\/strong><\/td>% of Properties That Offer Uncovered Parking<\/strong><\/td>% of Properties That Charge for Covered Parking <\/strong><\/td><\/tr>
Denver<\/strong><\/td>$59.72\/mo<\/td>$59.72\/mo<\/strong><\/td>95%<\/td>100%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

*Definition of “Raw Average”: This average includes properties that offer residents free parking (whether uncovered or covered), as well as those properties that charge residents additional fees for a given type of parking space. <\/em><\/p>\n\n\n\n

**Definition of “Charged Average”: This average excludes those properties that offer free parking. It only represents those properties that charge residents additional fees to park in their on-site parking facilities.<\/em><\/p>\n\n\n\n

Factors to Consider When Setting Parking Prices<\/h2>\n\n\n\n
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Factor #1: Parking Structure Type <\/h3>\n\n\n\n

Multifamily parking usually falls into one of three categories: indoor, covered, and outdoor\/uncovered. <\/p>\n\n\n\n

According to new research, 90% of Denver properties offer more than 1 of these parking types<\/strong> (anywhere from 2-4 parking options). <\/p>\n\n\n\n

Typically, covered parking in Denver is priced higher than uncovered parking <\/strong>(as seen in the table above). With Denver’s unpredictable weather—snowstorms, hail, and intense summer heat—there’s no question why covered parking is considered a valuable amenity. <\/p>\n\n\n\n

On average, multifamily property owners in Denver charge 6.6% more<\/strong> for covered parking.<\/p>\n\n\n\n

Factor #2: Parking Space Type<\/h3>\n\n\n\n

Multifamily parking pricing not only varies by coverage type<\/strong> (indoor, covered, outdoor) but also space type. <\/strong><\/p>\n\n\n\n

There are several different types of resident parking spaces, including standard <\/strong>spaces, compact <\/strong>spaces, tandem <\/strong>spaces, stacked <\/strong>spaces, and EV charging<\/strong> spaces.<\/p>\n\n\n\n

Compact Spaces<\/h4>\n\n\n\n

These parking spots offer less square footage and are, therefore, less expensive. Because of these size limitations, compact spaces are ideal for sedans, small SUVs, and hatchbacks. <\/p>\n\n\n\n

Tandem Spaces<\/h4>\n\n\n\n

These spaces are built for two vehicles and are common in larger cities that are space-constrained. <\/em><\/p>\n\n\n\n

Note: While the cost of a tandem space will exceed the cost of a standard-sized space, it is considered an affordable alternative to renting two individual parking spots.<\/em><\/p>\n\n\n\n

EV Charging Spaces<\/h4>\n\n\n\n

Parking rates will vary depending on whether the spaces are shared or assigned. Generally speaking, EV spaces<\/a> command a premium rate. <\/p>\n\n\n\n

In Neighbor’s sample of 240 multifamily properties nationwide, 42% said they offer EV charging for residents<\/strong>. However, the parking rates varied among this 42% of properties. <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Factor #3: Whether the Space is Assigned vs. Unassigned <\/h3>\n\n\n\n

Assigned parking<\/a> is predictable<\/strong>. There’s controlled access<\/strong>. Plus, it’s an amenity that sets resident parking lots and garages apart from other commercial parking options.  <\/strong><\/p>\n\n\n\n

So, you might expect that property owners–in and outside of Denver–would always charge more for assigned spaces than unassigned spaces (extra value = extra costs). But you might want to think again. <\/em><\/p>\n\n\n\n

While uncovered assigned<\/em> parking is substantially more expensive than uncovered unassigned <\/em>parking, <\/em>the price differences are minimal between covered assigned<\/em> parking and covered unassigned<\/em> parking (as visualized in the chart below). <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n
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Introducing assigned parking is an unconventional way to increase parking revenue<\/strong> if this isn’t an amenity already offered at your property. <\/p>\n\n\n\n

In addition to free or discounted unassigned parking, property owners can offer renters the option to upgrade to assigned parking for an additional fee. <\/p>\n\n\n\n

Factor #4: Market Rate (Location) <\/h3>\n\n\n\n

Professional parking operators in larger cities (like Denver, CO) charge anywhere from 99% to 279% more for parking than multifamily properties, depending on whether a parking space is covered or uncovered. <\/p>\n\n\n\n

Of all the markets sampled in this research, Denver has one of the largest price discrepancies between the market rate and the average multifamily rate for covered parking<\/strong> (alongside Phoenix and Miami). <\/p>\n\n\n\n

If Denver-based multifamily owners were to set their parking rates at just 50-70% (~$78\/month of this market rate, they could maintain competitive pricing and <\/em>increase annual NOI by up to $71,048 per year per property. <\/em><\/p>\n\n\n\n

Multifamily Parking Rates vs. Market Rates (Uncovered Parking)<\/h4>\n\n\n\n

In Denver, commercial parking facilities charge (on average) around 99% more<\/strong> for uncovered parking<\/strong> than multifamily properties in the area. <\/p>\n\n\n\n

Market Name <\/strong><\/td>Avg. Multifamily Parking Price <\/strong><\/td>Avg. Market Parking Price<\/strong><\/td>Price Difference ($) <\/strong><\/td>Price Difference (%) <\/strong><\/td><\/tr>
Denver<\/td>$56.00\/mo<\/td>$111.44\/mo<\/td>+$55.44\/mo<\/td>+99% <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Multifamily Rate vs. Market Rate (Covered Parking)<\/h4>\n\n\n\n

In Los Angeles, commercial parking facilities charge (on average) around 279% more for covered parking<\/strong> than local multifamily properties.<\/p>\n\n\n\n

Market Name <\/strong><\/td>Avg. Multifamily Parking Price <\/strong><\/td>Avg. Market Parking Price<\/strong><\/td>Price Difference ($) <\/strong><\/td>Price Difference (%) <\/strong><\/td><\/tr>
Denver<\/td>$59.72\/mo<\/td>$226.24\/mo<\/td>+$166.52<\/td>+279% <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Factor #5: Parking Ratio<\/h3>\n\n\n\n

In Denver, the average # of vehicles per household exceeds the average parking ratio (1.8 vs. 1.4).<\/strong> With this in mind, property managers can hike parking prices to reflect demand and effectively increase annual parking revenue. <\/p>\n\n\n\n

Despite the uptick in parking revenue, investors who own buildings in the following submarkets will still <\/em>struggle to meet resident parking needs: Central Business District, Denver International Airport, Denver Northeast, Denver South Central, and Denver Northwest.<\/em> <\/p>\n\n\n\n

If there isn’t room in the budget to add more parking facilities, property managers can recommend Neighbor to prospective\/existing tenants. On the Neighbor.com platform, renters can find off-site parking options in the same neighborhood.  <\/p>\n\n\n\n

Factor #6: Ratio to Rent <\/h3>\n\n\n\n

In Denver, parking rates are typically 3-4% of the average monthly rent. Parking experts, however, recommend that property owners set resident parking rates between 8-10% of monthly rent costs. When executed correctly, this strategy can boost parking revenue without negatively impacting renter retention. <\/em><\/p>\n\n\n\n

Factor #7: Recommendations from Parking Pricing Experts<\/h3>\n\n\n\n

While this article is a good source of local parking data, it should not be treated as a substitute for hyperlocal data specific to your neighborhood. <\/p>\n\n\n\n

Once you’ve finished reviewing this article, book a consultation with Neighbor’s team of parking pricing experts<\/a>. <\/p>\n\n\n\n

When Are Free Parking Spots the Best Pricing Strategy?<\/h2>\n\n\n\n

Some Denver property owners choose to offer parking as a free amenity for one or more of the following reasons:<\/p>\n\n\n\n