A Parking Ratio is used to provide a uniform method of expressing the amount of parking available at a given building. The majority of building departments and jurisdictions require that properties have a minimum Parking Ratio that is usually determined by the type of property and the specific use or intended use of the tenant.
Spaces that are occupied by healthcare providers, restaurants and other tenants that have a higher level of visitors are often required to have a higher parking ratio. Whereas properties such as industrial or warehouse typically are not required to have as many parking spaces.
Parking ratios are calculated by dividing the total rentable square footage of a building by the building’s total number of parking spaces. This provides the amount of rentable square feet per each individual parking space, and is typically expressed as 1 parking space per 200 SF or 5 parking spaces per 1,000 SF.
Landlords will often abbreviate the ratio by stating that the building has a 5/1 parking ratio; meaning, there are five parking spaces per 1,000 SF that a tenant would lease.