Posted on: Tuesday, August 5, 2003
No paradise when it comes to parking downtown
By Andrew Gomes
Advertiser Staff Writer
Parking garage fees have risen over the past year to make Honolulu's central business district the 13th most expensive, despite a weak office market and a national drop in parking rates, according to a July survey by real-estate firm Colliers International.
The survey found that it cost $175 a month on average for an unreserved stall in a downtown Honolulu garage, $20 more than last year, costing thousands of workers and their employers more money.
Meanwhile, the average parking rate for 53 major business districts across North America fell 7.4 percent to $140.52 over the past year, propelling downtown Honolulu from the 19th costliest place to park in June 2002 to 13th last month.
"I guess I'm lucky," said Henry Leoiki, a draftsman for engineering firm Cedric D.O. Chong & Associates Inc. who pays $42 a month for parking because his company pays the other $110. "It could easily be 175 bucks."
Downtown Honolulu's $175 average was $2.25 less than Los Angeles, and $100 more than Louisville, Ky. The most expensive monthly unreserved parking was in midtown Manhattan at $425. Fresno, Bakersfield and Orange County, Calif., had the least expensive at $70.
According to the survey, monthly parking rates for an unreserved stall in downtown Honolulu ranged from $125 to $200.
For a reserved stall, the price ranged from $200 to $300 a month.
Paying by the day, which few drivers do, can cost anywhere from $30 to $48. That was high enough to make Honolulu's daily average rate of $35 the second most expensive behind midtown Manhattan.
Mike Hamasu, research director for Colliers Monroe Friedlander, the local affiliate of Colliers International, said Hawai'i's high land costs make parking especially pricey because office tower developers often don't like to devote space to low-revenue uses like parking, which creates low supply and high demand.
"You have a lot of office space within a four-block area and a lot of the buildings don't have parking," he said. "The result is you have a lot of parking that landlords can charge more for."
According to the survey, 75 percent of downtown Honolulu garages have a waiting list. This tied Orlando, Fla., and Pittsburgh for shortages, although the typical wait was one month in Honolulu compared with six months in Orlando and a year in Pittsburgh.
Char Stephens, operations manager for network solution firm Expanets of Hawai'i, said she is thankful her company pays the $155 a month it costs her to park downtown. "If I had to pull that out of my pocket, I would be thoroughly disappointed," she said.
On the other hand, Amy Coloma, a part-time secretary to an attorney, avoids the whole expense. "I catch the bus," she said.
The annual Colliers report surveyed owners and operators of only covered or underground parking in prime central business districts, including 10 in Canada.
Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.