Interview Vincent Verdenne - Head of Development BNP Paribas Real Estate Valuation
Is parking an asset for the future?
Parking real estate is a niche. Unlike residential and office real estate, parking assets are primarily considered by investors as a secondary product linked to their real estate portfolio. But it is also the only asset found everywhere. Having a car park in your apartment building and being able to find a parking space in your neighbourhood are undeniable assets. Especially in view of public policies restricting car traffic in the city. At the same time, we are at a crossroads. The future of parking will depend on how we perceive the use of the car. With the development of public transport and “soft” transport, we are witnessing an increase in alternative uses. City dwellers can, for example, cycle the last kilometre. It is no longer compulsory to build a car park in a new building. This trend could have a negative impact on parking values. Before investing in this type of asset, it is therefore important to study the product, on a case-by-case basis, according to the state of the supply versus demand market
What are the impacts of environmental concerns on parking property?
Real estate developers and car park managers must adapt their car parks to new uses. Facilities such as meters and electrical outlets in car parks will be needed to recharge hybrid and electric cars. Beside the additional construction costs for property developers, this trend leads us to wonder about the cost of installing equipment, and especially the management of individual electricity consumption. For both private individuals and car park operators, there is a need to reflect on the new organisation to be put in place and the resulting investment. We found that green buildings with parking lots for electric vehicles could have a negative energy balance. However, investors are increasingly seeking to include their wealth in the ecological transition. All these developments will not be without consequences on the car park’s value.
Does the car park asset have an interesting potential for reconversion?
Car parks could be transformed into small warehouses to make up for the lack of space essential to the development of e-commerce in cities. It's still just a line of thought. If this solution can be considered in commercial areas, such a project may be complicated to implement in a residential building due to very strict regulations regarding product storage. We would then be obliged to apply another assignment to the car park. The debate is open today.