July 21, 2022

Shrinking Supply, Increasing Demand: One Asset Class Could Bring Value To All Others

When Gregg Reuben was a 19-year-old UCLA student, he set up a side gig for himself: running a market for individuals to exhibit and sell their used cars on the weekends. With an empty lot on his hands during the week, Reuben decided to use the space as a private parking spot.

Those experiences taught Reuben the basics of the business of parking. Now, 30 years later, Reuben is CEO of his own company, Centerpark, a real estate investment firm specialized in urban parking acquisitions and management.

“I think parking is going to become a valuable amenity for any project, whether it’s office or residential, just because there’s so little of it,” Reuben told Bisnow. “The supply is shrinking, while the demand is increasing.”

The value of parking could translate across asset classes, according to Daniel Lebor, a partner at Brooklyn-focused brokerage and advisory firm TerraCRG. Offices and residential buildings are both providing more parking to tenants as a perk, he said, although prices have increased. But despite that trend, Lebor said he doesn’t see parking becoming a key amenity in NYC.

Read the full story here.