Parking prices put city at No. 8 in U.S.
Parking cost in Honolulu rises to $209 per month
STORY SUMMARY »
Honolulu is the eighth-most-expensive place to park in the country, according to a new survey.
The city, which climbed from 11th-most-expensive metropolitan area in the previous year's survey, had a median monthly unreserved rate of $209, up 10 percent, according to the 2007 Parking Rate Survey by Colliers International, which based its results on 2006 rates, the last available. The national average was $152.
Honolulu placed below Washington, D.C., but above Los Angeles' median of $192.
Honolulu's parking rates have risen about 20 percent over the past five years. The issue also has become a deal-breaker for businesses looking to rent space in downtown Honolulu, where monthly parking fees range from $250 to $350.
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Increased demand for parking downtown has pushed Honolulu to the eighth-most-expensive city in the country to park, and rates are expected to escalate further as space becomes even more scarce.
The city climbed from 11th- to eighth-most-expensive metropolitan area this year among 61 markets across North America, with a median monthly unreserved parking rate of $209, according to the 2007 Parking Rate Survey by Colliers International. The national average is $152.
PUT IT IN PARK
A look at median monthly unreserved parking rates, at covered or underground parking garages in prime central business districts. Data was collected during of June 2006 and includes all relevant taxes.
U.S. TOP 12
New York (Midtown) -- $630
Boston -- -- $460
San Francisco -- $350
Philadelphia -- $297.50
Chicago -- -- $285
Seattle -- -- $275
Washington, D.C. -- $240
Honolulu -- $209.42
Sacramento -- $205
Charleston, S.C. -- $200
Hartford, Conn. -- $195
Los Angeles -- $192
U.S. average -- $152.38
"I've donated quite a lot of my money to parking," said Lisa Gallarde, a legal secretary at the Queen Street law firm Takahashi, Vasconcellos & Covert, who started catching the bus a year ago from Pearl City when daily parking rates rose to $7.
"Besides gas prices rising and parking going up, it's costing me too much. I have to get up much earlier to catch the bus, but that's the sacrifice I've got to make."
Honolulu's median monthly unreserved parking rate rose from $190 last year -- a 10 percent increase -- placing it directly below Washington, D.C., Seattle and Chicago, but above the Los Angeles rate of $192. Rates have risen about 20 percent over the past five years.
Midtown New York posted the nation's highest monthly median parking rate at $630, while Phoenix was the cheapest at $35.
Globally, London's City district was most expensive at $1,198 per month, with Tokyo and Sydney following behind at $702 and $688, respectively.
Escalating parking rates are affecting the bottom line for many Hawaii companies in Honolulu's central business district, where monthly fees range from $250 to $350.
Steven Baldridge, president of Baldridge & Associates Structural Engineering in the Finance Factors building on Bishop Street, shells out $4,000 a month for parking for his 25 employees, or double what he paid just four years ago.
"The problem we're having now is we can't even find parking for new employees," he said.
Parking has increased 20 percent to 25 percent within the past three to five years for investment brokerage firm Cadinha & Co. LLC at Pioneer Plaza, where the monthly parking rates range from $230 to $330.
"I don't see any other recourse -- there's no mass transit so people have to drive to work and I don't see any new supply of space coming in," said Harlan J. Cadinha, company chairman and chief executive officer.
In addition, the issue has become a deal-breaker in lease negotiations with prospective tenants, according to local brokers.
"Parking is the back-seat driver of the market -- it is making a lot of decisions," said Jeffrey Hall, senior director of research for CB Richard Ellis Hawaii, adding that parking rates have been climbing steadily for the past three to four years. "It's certainly one of the factors that can kill a deal."
The upward trend is likely to continue for the foreseeable future, as the demand for office space remains strong. Oahu's vacancy rate this year fell to 6.5 percent, its lowest level since 1991. The space crunch is expected to worsen in the upcoming years.
"Nobody's planning on building new parking garages so there's a likelihood monthly charges for parking stalls are going to continue to increase," said Mike Hamasu, director of consulting and research at Colliers Monroe Friedlander Inc. "As long as the job market stays strong ... that's going to keep the parking rates up."
WHAT PRICE PARKING?
Median monthly unreserved parking rates, at covered or underground parking garages in prime central business districts. Information was collected during of June 2006 and includes all relevant taxes.
U.S. BOTTOM 10
Las Vegas -- $65
Walnut Creek, Calif. -- $65
Little Rock, Ark. -- $60
Greenville, S.C. -- $57.50
Memphis, Tenn. -- $57
Santa Rosa, Calif. -- $55
Fresno, Calif. -- $50
Bakersfield, Calif. -- $45
Reno, Nev. -- $45
Phoenix -- $35
Source: Colliers International
INTERNATIONAL TOP 10
London (City) -- $1,198
Tokyo -- $702
Sydney -- $688
Hong Kong -- $682
New York (Midtown) -- $630
Moscow -- $620
Zurich -- $487
Paris -- $324
Munich -- $314
Toronto -- $287