Quote:
Originally Posted by tommyten09top
... I saved an article a while ago from Atlanta Magazine that showed how the lust for parking revenue, among other things, contributed to the area around Turner Field remaining a development wasteland...
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Many don't realize how stadium parking will inflate prices and push out other productive developments. Some quick numbers to show the challenges that Summerhill faced in the past and Cumberland will face in the future:
You can fit 150 parking spaces per acre (Could be up to 169):
https://ag.tennessee.edu/cpa/Informa.../CPA%20222.pdf
Then let's assume the parcel isn't making a dime outside of the 81 home games a year.
And even though they probably can get $20 a space being right next door, let's assume they only get $15.
That gets you: 150 * 81 * $15 = $182,250 a year just by letting your acre lot sit empty.
Even if we assume that acre is going for the $2M, a 30 year mortgage on that is about $10K a month. That leaves you with a $60k, 50% profit margin per year while doing nothing more than holding the land. Not bad considering most of the people that buy these lots are really just looking to break even each year and make their profit selling the land after holding it for a couple decades as an investment.
Even things like hiring guys to monitor the lot, keeping the lot freshly paved, (or other things to be a good neighbor that most of these lots won't be doing) will not cost more than a few thousand a year or bring the profit margin down out of the double digits.
What other businesses can expect to come near a profit margin like that on land costing $2M an acre in the suburbs?
Given that the new stadium will provide 30% less parking spaces (6,000 vs 8,500 at Turner) and not have good transit access it is hard not to expect a lot of gravel-lot-wasteland-private-parking popping up in Cumberland in the next decade.
On the plus side, Summerhill will probably see more development in the next ten years than it has since the 1960s.
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