How does one value a car-park?
How does one value a car-park? Is it just via the standard mix of comps and DCF? If so, what are the key metrics that drive value, and what are some of the multiples used?
I'm assuming drivers of value would be: size of carpark, price per spot, occupancy rates, proximity to CBD/airport/convention centre/shopping centre etc. And if you're a car-park operator, what are your main costs? Labour for the security and attendants and valet, maybe repairs to the structure?
Do operators generally lease the car-park or own it?
Any help would be great.
Start by reading Zipcar's 10-k and other related things (conference calls, etc.). They own/lease individual parking spots. Yes, this is not necessarily a car parking lot, but should help you in the right direction (they break down numbers to help to start valuing stuff). If you had the actual numbers then running a DCF wouldn't be tough, but what other people are paying to lease/buy individual parking spots should help for valuation purposes. Then make some sort of adjustment to scale up to a parking lot. You might be able to get enough granularity to compare different $$/spot values in different cities, but I forget how much they break it out in their financials.
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