Downtown Office Campus Disposition
Property Overview
The property is a downtown office campus in West Palm Beach, Florida. It consists of a newly completed Class A office tower and a renovated 1937 landmark building, about 144,000 square feet in total. Both buildings share a 272-space, six-level garage with a cloud-based parking system, eight EV charging spaces and a car wash station. Demand comes from office tenants during the day, restaurant valet in the evening, and a weekend farmers market and waterfront events. Ownership was preparing to sell the campus while both buildings were still in lease-up, at 36% and 56% occupancy. They engaged Parking Advisors to build a supportable view of parking income at stabilization.
Underwriting Parking Income for a Disposition
To show buyers what the garage could earn once the buildings were full, we built an 11-year parking cash flow model. It projects office, restaurant, weekend and event demand separately. Our work included:
- Cash flow model: projected revenue and expenses by demand segment through stabilization in 2030, reaching $1.9M in annual parking revenue.
- Office demand: at 97.5% occupancy and 2.5 spaces per 1,000 square feet, monthly parkers could rise from 169 to 299. Office parking makes up 52% of stabilized revenue.
- Evening and weekend demand: modeled restaurant valet growth from 250 to 450 nightly covers following a 2026 expansion, plus seasonal farmers market and waterfront event traffic.
- Market analysis: surveyed competing rates and documented a tightening public supply. A 400-space city garage across the street is proposed for redevelopment, and the city has added over 9,000 residents since 2020.
- Staffing model: sized garage staff, office valet and seasonal restaurant valet to reach a stabilized staffing cost of about $292,000.
- Diligence: abstracted the management agreement, confirmed all 272 spaces on a site walk, and reviewed the parking technology.
The analysis gave ownership and prospective buyers a defensible, segment-by-segment projection of $1.9M in stabilized parking revenue. That supported pricing the garage on its future income rather than its lease-up performance.