Parking Ratio Declines Only Modestly in Los Angeles

Parking ratios in Los Angeles have declined only slightly since 2000. According to the latest research on mobility from CBRE, Los Angeles parking ratios have declined from 3.6 from 2000 to 2010 to 3.5 from 2010 to today. The market has trends behind other major metros in terms of parking ratios. Despite the push toward public transit options, live-work-play communities and alternative forms of transportation, like ride sharing and bike rentals, Los Angeles remains a car-centric city.

“Parking is still critically important in markets like Los Angeles where the vast majority of workers commute via vehicle,” Andrea Cross, Americas head of office research at CBRE, tells GlobeSt.com. “The percentage of commuters in the Los Angeles-Orange County metro area that traveled to work alone in a vehicle actually rose by 80 basis points to 74.6% between 2013-2016, the greatest increase among the largest U.S. office markets, underscoring the need for landlords to provide adequate parking to tenants. This is especially true in suburban areas that lack public transit options. Prevailing parking ratios for Los Angeles suburban office properties range from 3.5-5.0 spaces per 1,000 square foot., compared with 1.0 space per 1,000 square foot in downtown Los Angeles, where public transit is more readily available.”

The modest decline in parking ratios illustrates a continued demand for parking in Los Angeles. “This reflects the continued need for parking in Los Angeles and contrasts with other major markets such as Boston, Denver, San Francisco, Seattle and Washington, D.C., which all saw greater declines in parking ratios during the same period,” adds Cross.

While parking ratios have only declined slightly in the last decade, Cross says that owners should be cognizant of transportation options and how they are changing the need for parking. “One of the best ways for owners to adapt to recent and future transportation changes is to create vehicle pick-up and drop-off zones,” she says. “These can be used for ridesharing services such as Lyft and Uber today and autonomous vehicles tomorrow. We also are seeing tremendous growth in both shared and individually owned two-wheel transportation options, particularly bikes and eScooters. Owners of buildings in areas where these options are available and feasible for commuters, such as Santa Monica, can create areas for pick-up/drop-off and storage.”

Looking ahead, it is likely that parking ratios will decline more dramatically in the next decade, thanks to new and alternative transportation options. “Although the automobile remains the primary mode of commuting in Los Angeles, new transportation options like bikeshare, rideshare and eScooters as well as the expanding Metro system provide a greater range of options for getting around than ever before,” adds Cross. “Owners need to be aware of and responsive to how their tenants’ employees commute and how if, at all, this will change in the future. Needs will vary by location; for example, denser areas with Metro access may see a greater increase in workers using alternative commuting means than more outlying, suburban areas where the car remains king. Creating pick-up/drop-off areas and incorporating bike and scooter parking areas are several ways that owners can adapt to these changes.”