Do parking requirements significantly increase the area dedicated to parking? A test of the effect of parking requirements values in Los Angeles County
Minimum parking requirements (MPRs) are the norm for urban and suburban development in the United States (Davidson et al., 2002). The justification for MPRs is that overflow parking will occupy nearby street or off-street parking. Shoup (1999a) and Willson (1995) provide cases where there is reason to believe that parking space requirements have forced parcel developers to place more parking than they would in the absence of parking requirements. However, to our knowledge the existing literature does not test the effect of parking minimums on the amount of lot space devoted to parking beyond a few case studies. This paper tests the hypothesis that MPRs bind for most land uses using data on suburban office, commercial, industrial and retail property sales from Los Angeles County using both direct and indirect approaches. Our indirect test of the effects of parking requirements is similar to the one used by Glaeser and Gyourko (2003). A simple theoretical model shows that the marginal value of additional parking to the sale price of a building should be equal to the cost of land plus the cost of parking construction. We estimate the marginal values of parking and lot area with spatial methods using a large data set from the Los Angeles area non-residential property sales and find that for most of the property types the marginal value of parking is significantly below that of the parcel area. In addition, we directly examine required and supplied parking and find that on average parking supplied is quite close to the required amount.
Volume (Year): 46 (2012)
Issue (Month): 6 ()
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/supportfaq.cws_home/regional|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- A. Steven Holland & Steven H. Ott & Timothy J. Riddiough, 2000. "The Role of Uncertainty in Investment: An Examination of Competing Investment Models Using Commercial Real Estate Data," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 28(1), pages 33-64.
- Ihlanfeldt, Keith R. & Taylor, Laura O., 2004. "Externality effects of small-scale hazardous waste sites: evidence from urban commercial property markets," Journal of Environmental Economics and Management, Elsevier, vol. 47(1), pages 117-139, January.
- Sivitanidou, Rena, 1996. "Do Office-Commercial Firms Value Access to Service Employment Centers? A Hedonic Value Analysis within Polycentric Los Angeles," Journal of Urban Economics, Elsevier, vol. 40(2), pages 125-149, September.
- Small, Kenneth A., 1992.
"Using the Revenues from Congestion Pricing,"
University of California Transportation Center, Working Papers
qt32p9m3mm, University of California Transportation Center.
- Small, Kenneth A., 2001. "Using the Revenues from Congestion Pricing," University of California Transportation Center, Working Papers qt7170x9b0, University of California Transportation Center.
- Douglas Hodgson & Barrett Slade & Keith Vorkink, 2006. "Constructing Commercial Indices: A Semiparametric Adaptive Estimator Approach," The Journal of Real Estate Finance and Economics, Springer, vol. 32(2), pages 151-168, March.
- Mary E. Deily & Wayne B. Gray, 1989.
"Enforcement of pollution regulations in a declining industry,"
8912, Federal Reserve Bank of Cleveland.
- Deily, Mary E. & Gray, Wayne B., 1991. "Enforcement of pollution regulations in a declining industry," Journal of Environmental Economics and Management, Elsevier, vol. 21(3), pages 260-274, November.
- Edward L. Glaeser & Joseph Gyourko, 2003. "The impact of building restrictions on housing affordability," Economic Policy Review, Federal Reserve Bank of New York, issue Jun, pages 21-39.
- Shoup, Donald C., 1999. "The trouble with minimum parking requirements," Transportation Research Part A: Policy and Practice, Elsevier, vol. 33(7-8), pages 549-574.
- Mukhija, Vinit & Shoup, Donald, 2006. "Quantity versus Quality in Off-Street Parking Requirements," University of California Transportation Center, Working Papers qt727788bk, University of California Transportation Center.
- Kathleen P. Bell & Nancy E. Bockstael, 2000. "Applying the Generalized-Moments Estimation Approach to Spatial Problems Involving Microlevel Data," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 72-82, February.
- Grenadier, Steven R, 1996. " The Strategic Exercise of Options: Development Cascades and Overbuilding in Real Estate Markets," Journal of Finance, American Finance Association, vol. 51(5), pages 1653-79, December.
- Sivitanidou, Rena & Wheaton, William C., 1992. "Wage and rent capitalization in the commercial real estate market," Journal of Urban Economics, Elsevier, vol. 31(2), pages 206-229, March.
- Sivitanidou Rena, 1995. "Urban Spatial Variations in Office-Commercial Rents: The Role of Spatial Amenities and Commercial Zoning," Journal of Urban Economics, Elsevier, vol. 38(1), pages 23-49, July.
- Bowman Cutter IV & Autumn DeWoody, 2010. "Parking Externalities in Commercial Real Estate," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 38(2), pages 197-223.
- Shoup, Donald C., 2004. "The ideal source of local public revenue," Regional Science and Urban Economics, Elsevier, vol. 34(6), pages 753-784, November.
- Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-19, November.
- Shoup, Donald C., 2004. "The Ideal Source of Local Public Revenue," University of California Transportation Center, Working Papers qt3x03s541, University of California Transportation Center.
- repec:ucp:bkecon:9781884829987 is not listed on IDEAS
- Cunningham, Christopher R., 2006. "House price uncertainty, timing of development, and vacant land prices: Evidence for real options in Seattle," Journal of Urban Economics, Elsevier, vol. 59(1), pages 1-31, January.
- Peter F. Colwell & Henry J. Munneke & Joseph W. Trefzger, 1998. "Chicago's Office Market: Price Indices, Location and Time," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 26(1), pages 83-106.
- Richard Arnott & Tilmann Rave & Ronnie Schöb, 2005. "Alleviating Urban Traffic Congestion," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012197.
When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:46:y:2012:i:6:p:901-925. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.