VALUATION OF…
Parking Garages
Multi-storey or basement parking structures, valued on bay income where let or operated, or as ancillary to a host building.
Content status: Methodology and evidence log — Sources, Caselaw and Market Information are added incrementally.
Methodology
Standalone parking garages, where independently let or operated for commercial parking income, are valued using the Income Capitalisation Method applied to achievable bay rental or hourly/monthly parking revenue; where the parking is ancillary to and cannot be separated from a host building, its value is generally reflected within the host building’s overall valuation rather than valued independently.
Under the Big Five framework, the Income Generating Unit is the parking bay (or, for commercial operations, gross revenue per bay per month); contract or achieved income is compared to market rates for comparable parking facilities in the same node, having regard to occupancy, security and access convenience, and the capitalisation rate applied reflects operator covenant and node parking demand.
A Direct Comparison cross-check on a rate per bay, drawn from sales of comparable standalone parking structures, should be used to test the primary income-based valuation.
Caselaw
Case law, regulatory rulings and expert-determination disputes relevant to valuing this asset class. Each entry cites its source and summarises the practice implication for valuers — this is not investment, financial, or legal advice.
The Evidence Log is for VDH Members
The Evidence Log for Parking Garages — sourced sales, disposals and rentals with Valuer’s Lens commentary — is included in VDH Membership: from R125/month for SACPVP candidates and students, R399/month standard. All prices include VAT.
The methodology and case law on this page remain free to read.