Prosper County Parking

[Nasi K.]

Hi,

We are buying a part of the commercial land (in a big commercial space) in prosper, TX. We have options to design the multi-retail space as 11000 sqft with 72 parking spaces or 13000 with 60 parking space in 1.4 acre lot. we are thinking which is the best option to choose given that if we need to give space to restaurant in two end caps, will 11k or 13k be better in long term?

[Michael K Gallagher]

I think the question comes down to what impacts the highest and best use of your deal more... an increase of 2K SF?  or an increase of 12 parking spaces?  I assume both options are within the local ordinances for parking requirements per SF of retail space?

Something else that comes to mind is the building going form 13K sf to 11K SF, how does that reduction of SF impact the unit count/layout/usability for your target tenants?  You mentioned a restaurant on an end cap, does that restaurant want additional space that would lead to additional revenues from the leasable SF increase?

I've never done a deal in prosper TX but I've done some in San Antonio, and a couple other sub markets, and if we consider say $30/SF annually in rents (thats usually what I'm seeing on the low end for new build retail space) can equate to an additional $60K in net rental income (doesn't include increases or NNN's etc) annually if you keep the 2K SF. Is the value of those additional parking spaces worth the 60K annually in potential rents? that's where my mind goes as least, perhaps I'm way off though.