FALLING REVENUE & REAL ESTATE SHIFTS

Standalone parking garages and those located in residential buildings are seeing lower occupancy, causing operators to renegotiate leases at reduced rates.

This means lower revenue for co-op and condo buildings, which could lead to higher costs for residents. With parking becoming less profitable, many garages may be converted into residential or commercial spaces, reshaping Manhattan’s real estate market. Developers are likely to see these properties as prime opportunities for transformation. As demand for parking declines, NYC’s urban landscape is shifting. Will garages become new housing or office spaces? One thing is clear: congestion pricing is not just reducing traffic—it’s changing the value of real estate in Manhattan.

IS CONGESTION PRICING REALLY DEAD?

On Wednesday February 19, 2025, President Trump posted to social media that he was killing congestion pricing. But Governor Hochul has since vowed to keep congestion pricing in place while the MTA filed a federal lawsuit to challenge the order. For now, congestion pricing will continue as the MTA and federal transportation officials prepare for legal battle, which could take anywhere from months to years. Drivers can expect to continue paying the tolls unless the court orders they be stopped.

WHAT'S NEXT

While congestion pricing is in place and the current demand for parking is in decline, it's clear that New York City's urban landscape is shifting. Congestion pricing isn't just easing traffic—it’s reshaping the value of Manhattan real estate. Navigating these times can be challenging and overwhelming, which is why it helps to have an expert consultant on all the everchanging rules and regulation.

With over 20 years of experience, EDG Architecture + Engineering is NYC's top parking structure consultants—contact us today to get help with zoning analysis, master planning, and ROI optimization around converting a garage into commercial or residential.