Northblock- RFI/RFQ - Laserfiche WebLink

Home Browse Search

INTRODUCTION TO DEVELOPMENT SCENARIOS The subject of this analysis is a 12,790 square foot building pad with basement parking located in the Salem CBD. There are numerous development scenarios for the building pad that are physically possible; however, the long/narrow shape of the pad restricts many uses. In addition, the subject's 56 parking spaces limits the size of building to be constructed. Although a five-story structure could be developed, parking constraints limit the size to a maximum of three stories. The parking constraint is discussed in detail below. Legal - The subject's CBD zone has no legal requirement for parking. This is typical of a central business zone. However, to obtain certain rent levels, market requirements for parking must be achieved. Residential - According to the City of Salem zoning code for multi-family development, parking requirements are a minimum of 1.5 spaces per unit. In addition, market driven CBD residential parking requirements were discussed with several develope~s and real estate professionals. The consensus was that one to one-and-a-half parking spaces per unit should be provided. Given the 56 parking spaces provided and allocating 1.5 spaces per unit, this calculates to a maximum 37 units (56 = 1.5) that could be developed on the site. However, as seen in Scenarios 4 and 5 ahead, the ground floor retail space is allocated one space per 1,000 square feet, reducing the multi-family parking to 44 available spaces. This equates to a maximum number of 29 units (44 = 1.5). For practical purposes this number is rounded to 28 units. Retail - Typically, a CBD retail tenant is not allocated parking for its patrons. However, rent levels vary slightly depending upon the amount of parking available for the tenant's employees and access to customer parking. Essentially, a retail tenant will pay higher rent for space, which includes parking for employees (typically one space per 1,000 square feet of nefi rentable area) and has good access to customer parking. Office - Although no legal parking constraint is imposed for office development in the CBD zone, market participants will pay a higher rent for office which includes free parking. Looking to several office projects in the CBD, parking ratios vary from two to three spaces per 1,000 square feet of net rentable area. The most current CBD office development is the Centennial Bank building, which offers three spaces per 1,000 square feet. The market rent for this project is $1.35 per square foot, triple net. As opposed to this, the Capitol Center (although older yet in very good condition) has no on-site parking with triple net rents of approximately $1.00 per square foot. Given the 56 parking spaces provided and allocating 2.0 spaces per 1,000 square feet of NRA, this calculates to a maximum of 28,000 square feet ((56 = 2) x 1,000), as seen in Scenario 2 ahead. Given the constraints associated with shape and parking, five development scenarios were considered with respect to estimating the maximally productive use of the site. In addition, an interim parking use has been considered. pgg23g PALMER, GROTH & PIETKA, INC. 21