Underutilized Office Building Parking Garage Rooftops Create New Value-Add Opportunities for Landlords
September 19, 2024 (HOUSTON) –
In the evolving office markets of major U.S. cities, where daily foot traffic has decreased, property owners are increasingly focused on maximizing and monetizing every building’s amenity potential and opportunities for revenue. Lee & Associates Houston’s office division has observed this trend through their client conversations and surveys of the competitive market. This shift has inspired innovative repurposing, especially in revitalizing the underutilized rooftops of parking structures. As parking demand diminishes, these spaces are being transformed into valuable amenities, offering landlords new opportunities to enhance their properties and address the changing needs of tenants.
Several key factors are driving the reduction in daily office building population density, including the rise of hybrid and remote work schedules and the increased use of alternative commuting methods to lower carbon footprints. These changes have led to reduced use of parking garages, with fewer people driving to work each day. Consequently, many parking structures—especially rooftop levels—are left largely vacant, even if the building is 100% leased. In response, innovative building owners are seizing these underutilized areas as value-add opportunity. A popular transformation is converting these spaces into pickleball courts, capitalizing on the sport’s growing popularity and the relatively straightforward installation process. Other examples include solar panels that can provide backup power for the building; and honeybee hives, of which the honey made can be used as a promotional gift for tenants and prospects.
This trend reflects a broader emphasis on employee wellness, work-life balance, and the rising demand for high-quality office spaces. Companies now seek office environments that offer more than just a workspace; they need to be inviting enough to rival the comfort of home and the convenience of remote work. To meet these expectations, offices must include areas where employees can collaborate, relax, socialize, and unwind. Blake Virgilio, SIOR, CCIM, Senior Director at Lee & Associates, highlights this need, stating, “Conscientious and effective use of all space is essential for creating a lasting impression in office buildings. Today, common areas are crucial for making a building competitive.” Often underutilized rooftop parking garages in urban U.S. areas present a prime opportunity for building owners to add outdoor amenities—such as sports courts and lounges—at a relatively low cost, transforming these vacant spaces into vibrant activity hubs.
Additionally, converting rooftop parking levels into enjoyable spaces offers a cost-effective strategy for enhancing a building’s appeal without the need for major structural changes. By leveraging existing infrastructure, owners can introduce unique features that add significant value, helping to differentiate their property in an increasingly competitive market. Beyond the benefits to individual buildings, revitalizing garage rooftops can bring value to entire metro areas by transforming unattractive, barren concrete structures into lively, vibrant spaces. This shift not only improves the visual landscape of urban environments but also contributes to a more engaging, community-focused atmosphere in once underutilized spaces.
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About Lee & Associates – Houston
Lee & Associates – Houston is a fully-integrated commercial real estate company with unrivaled market knowledge and an unwavering commitment to integrity and excellence. Our business-minded brokers specialize in office, industrial, and land real estate investments. Lee & Associates – Houston is part of a nationwide network of brokers in more than 80 offices in North America. The brokerage is uniquely qualified to support our client’s real estate needs in Houston, across Texas, and throughout the US. For more information, visit lee-associates.com/houston.