The Hidden Truth about Parking Costs in New Orleans

When leasing office space, parking costs can quickly eat away at your bottom line if you are not careful.  However, this cost largely depends on which part of the city you are looking at.  Parking is generally the most expensive for tenants in downtown markets.  New Orleans is a good example.  In the Central Business District (CBD), space is limited and buildings may charge as much as $175 per parking space per month.  For a business with 10 employees that occupies 2,000 RSF, you could pay $21,000 per year ($175 x 12 months x 10 employees) for parking.  This works out to an additional $6/RSF.  If you had not previously considered parking costs and your base rent is $18/RSF, your leasing expenses just rose by over 33%.

In a suburban area like Metairie, Louisiana, parking is usually less expensive. Some buildings may charge for parking while others will not.  Or in some cases, buildings may offer free unreserved parking but charge for reserved spaces.  In general, you are more likely to incur parking fees in the larger buildings in Metairie.  Always ask about parking costs and take them into consideration when making a decision.  If a Landlord does charge tenants for parking, he may be willing to cut a deal to attract new tenants.

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