According to Colliers International’s 2009 Parking Rate Survey, Garages Manage to Hold Rates Steady Amid Economic Woes

Daily and monthly parking rates in the U.S. diverged over the past 12 months (ending June), with daily rates up 1.2 percent ($0.18) and monthly rates sliding ever so slightly by 0.9 percent ($1.47). Such relative steadiness in the face of this historic recession may be attributed to a continued imbalance between parking supply and demand.

The modest 0.9 percent drop in U.S. monthly parking rates is attributed to a substantial decline in office occupancies, which tends to push monthly rates lower. However, monthly rates’ drop was quite mild when compared to the significant weakness in the office sector.

Daily rates are more a function of the general economy and consumer spending, and their 1.2 percent increase showcases that demand for daily parking remains remarkably strong even as the economy and retail sector continue to suffer. This underscores the strong ties people have to their cars.

Even though the economy is expected to remain sluggish, and the labor market lackluster, drivers should not expect this weakness to manifest itself in lower parking rates. While higher fuel prices across North America have reduced the total number of miles driven, demand for parking seems to be more recession-proof, and this affords garage owners and operators the opportunity to hold prices close to year-ago levels. Moreover, when the economy rebounds, the markedly rising parking rates of years past are expected to return, according to Colliers.