The way we move around cities is changing. Different daily routines and new models of transport provision means the role of carparks as urban infrastructure is increasingly uncertain.
This paper identifies the key trends affecting supply and demand of car parking in the UK, and implications for investors and landlords. It sets out a range of strategies for adapting to changing demand, and minimising the risk of obsolescence of both existing and future car parking assets.
- Investors may wish to take a more medium to longer term view on car park acquisitions. Given the trend towards car reduction in urban centres and planning policies permitting or even supporting conversion, the value of potential conversion to alternative use is likely to increase
- For landlords, changes to parking assets do not always need to be site-wide or permanent. Make the most of central locations, demand-matching platforms and relative flexibility of carpark design to identify and accommodate alternative uses. Choice of operator is key.
- Planning authorities should take a permissive approach to carpark conversion. This could include the extension of permitted development rights and the fast-tracking of development proposals, particularly in locations where housing can be provided.