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Parking is a powerful yet often hidden force shaping our communities. The availability and cost of parking can significantly influence the design of our neighborhoods, our modes of transportation, and even our quality of life. As Edmonton continues to evolve, the issues surrounding parking and cars in Purpose Built Rentals (PBRs) are becoming increasingly complex and thought-provoking.
Edmonton has long been known as a "driving city," where the car is king and extensive parking facilities are considered essential. However, this model of thinking may be outdated as the world—and Edmonton—undergoes significant changes. Many new purpose-built rental buildings in Edmonton now have fewer parking spaces than the total number of units, with developers charging between $150.00 to $350.00 for a single parking stall. This trend is driven by a combination of factors, including rising construction costs, limited urban space, and a shift towards more sustainable living practices. At the same time, inflation is causing costs to rise across the board, prompting tenants to reassess the necessity of owning a car.
Edmonton's City Council has taken a significant step by implementing the Open Option Parking policy, effective July 2, 2020. This policy removes minimum on-site parking requirements from the city's Zoning Bylaw, allowing developers, homeowners, and businesses to decide how much parking to provide based on their specific needs. This flexible approach aims to ensure that the right amount of parking is available, tailored to the unique demands of each property.
For apartment tenants, the high cost of parking and the flexible parking regulations present a dilemma: should they hold onto their cars, or is it time to consider alternative transportation options? The rising expenses associated with car ownership—fuel, maintenance, insurance, and now parking—make this a critical question.
Reducing or eliminating minimum parking requirements can lead to significant cost savings for developers. According to the report "Impact of Parking Requirements on Housing Affordability," lowering minimum parking requirements by 40% can reduce hard construction costs by up to 9%. These savings stem from various factors, including the reduced need for expensive underground parking structures, which can cost between $115 to $265 per square foot compared to $5 to $27 per square foot for surface parking.
Underground parking requires extensive excavation, often leading to higher construction costs due to the need for deep foundations and retaining walls to prevent soil and water intrusion. By reducing the need for underground parking, developers can avoid these additional expenses, thereby lowering the overall construction costs of a project.
Underground parking structures are not only expensive to build but also costly to maintain. They are susceptible to flooding, soil settlement issues, and concrete deterioration, all of which require ongoing maintenance and repairs. The study estimates the annual maintenance cost for underground parking at $575 per space. Reducing the number of underground parking spaces can thus lead to significant long-term savings in maintenance and rehabilitation costs.
The reduction in construction and maintenance costs can translate into lower rents or purchase prices for end-users. This is particularly important in a city like Edmonton, where housing affordability is a pressing issue. By lowering the overall cost of development, savings can be passed on to tenants and buyers, making housing more affordable for a larger segment of the population.
The belief that Edmonton is a "driving city" is being challenged by new realities. As the city continues to develop and embrace new transportation solutions, residents may find that owning a car becomes less necessary. Enhanced public transportation, bike-friendly infrastructure, and the growing availability of ride-sharing services can all reduce the reliance on personal vehicles.
One forward-thinking solution to the parking conundrum is the implementation of a dedicated use, in-house car sharing services. Developers could partner with car-sharing companies to provide residents with convenient access to vehicles without the burden of ownership. Imagine the convenience of having a car available within your building for occasional needs—an ideal solution for those who drive infrequently but still require access to a vehicle. A forward thinking amenity that is funded by the tenants themselves.
Cost Savings: Residents save money by avoiding the high costs of owning and maintaining a car.
Convenience: Vehicles are readily available within the building, eliminating the need for long-term parking or sourcing around the city.
Environmental Impact: Fewer cars on the road lead to reduced emissions and a smaller carbon footprint.
As Edmonton navigates the evolving landscape of urban development and transportation, the issues surrounding parking and cars in PBRs will continue to be a topic of great importance. For tenants, developers, and policymakers alike, finding innovative solutions to these challenges will be key to creating a more vibrant, sustainable, and livable city. By embracing flexible parking policies, promoting alternative transportation options, and considering in-house car-sharing programs, Edmonton can lead the way in reimagining the role of cars in our urban future.
Developers seeking to capitalize on these emerging trends and maximize the potential of their PBRs should consider partnering with Iconic Projects. With a proven track record in marketing and leasing purpose-built rentals, Iconic Projects offers comprehensive strategies that not only address current market demands but also anticipate future needs.
By collaborating with Iconic Projects, developers can leverage our deep understanding of the Edmonton real estate market and innovative marketing techniques. Together, we can create thriving communities that meet the needs of modern renters while ensuring long-term profitability and success.
For more information on how Iconic Projects can help you achieve your development goals, visit our website or contact us directly to discuss your project. Let’s build the future of Purpose Built Rentals in Edmonton, together.
