The Future of Parking Areas for Commercial Real Estate Players

As services like Uber and Lyft become increasingly popular, many are beginning to wonder what this means for parking lots in the years to come.

Typically, office and retail tenants rely on lengthy talks and a series of evaluations to determine what parking ratios are acceptable for their businesses and offices. Generally, parking ratios are determined by municipal zoning rules. 

Apart from ensuring that the appropriate amount of parking spaces is given, big box stores require specific parking fields in front of their locations and adhere to strict parking ratio minimums. It is not uncommon for these tenants to designate protected parking zones, which forbid landlords from ever modifying, rearranging or reassigning their parking places, as well as retaining architectural control over their parking areas. The majority of these leases have base durations ranging from 10 to 20 years, with extension rights ranging from 25 to 40 years.

However, new advances such as robotic garages and the development of services, like Uber and Lyft, are likely to spell the end of the wide-open parking spaces we’ve grown accustomed to. Though the full impact of some of these new technologies will likely take years to manifest, developers should pay attention to how much control they are giving tenants over their parking fields. As well as considering developing properties that already include electric vehicle charging stations and pick-up/drop-off zones. Furthermore, players in commercial real estate should incorporate language into long-term leases that allow freedoms to change parking areas to accommodate for these and future developments. 

Alvarez & Diaz-Silveira LLP is a corporate law firm in Miami, focusing on international and domestic M&A, finance, real estate and corporate immigration. If you or your business needs legal advice, contact an M&A Attorney in Miami for help.