In the investment context, car parks are increasingly popular in many parts of the world, particularly since available parking spaces are increasingly scarce while the uptake of driving is still on the rise. Particularly in busy urban areas car park fees and rental agreements offer lucrative deals.

One reason why many first-time real estate investors express an interest in the car park proposition is because the assets are relatively regulation and hassle-free, while its supply is limited but demand continues to be high. The criteria that are set for car parks by public bodies, local authorities and others are often simple and straightforward, with few confusing exceptions or later-added conditions.

The operational knowledge and experience on the side of the investor can be modest, in contrast to, for example, retail or hotels. Those who are planning to pump fresh capital in this type of alternative asset do not require to have extensive know-how as the operational and commercial side of the leasing business and its execution is limited. Often, Rodschinson’s global team of experts can help clients to find a suitable property management company that turns around and sub-leases the car parking spaces to customers on an annual basis.

One of the main reasons many of our clients prefer car parks over other alternative asset types is the low-risk element of the property. A car park investment is a low-risk proposition given the fact that demand for parking continues to be high. Many of the investors Rodschinson works with often snap up returns of 8 to 9% annually.