OWNING PARKING LOTS

[Jermaine Gourdine]

Hello BP,

I have some interest in possibly buying car parking lots.  Does anyone have any information on this market?  Not able to find much info online on this topic.  Can anyone point me in the right direction on this topic in order to learn more?

[Sean Markey]

Hey - We own a small 25 car parking lot next to a commercial building we also own.  Our building tenant and a neighbor rent all the spaces.  We master leased the lot for 15 years before we bought it out of a Bankruptcy estate on a first right of refusal.  It is a pretty simple investment for us as one tenant rents 60% of the spaces on a five lease that reimburses taxes and insurance.  The other is and has been on a one year gross lease renewed every year for about ten years.

Asphalt is pretty durable as we do not have freeze and thaw related problems here.  Patch once in a long while, seal about the same, sweep occasionally maybe every six or twelve months, paint stripes once every few years maybe five or ten, replace an occasional concrete stop bumper or sign, paint the light pole once every ten years or so.  Our business tenants are long term and pay regular by automatic deposit so there is not much to do most days, weeks and months.  Happy to share our experience if any other questions.