A parking variance is a legal exemption or modification granted by a local zoning authority that allows a property owner to deviate from the standard parking requirements outlined in zoning regulations. These requirements typically dictate the minimum number of parking spaces a property must provide based on its size, use, or occupancy type.

Developers often consider parking variances reactively when a site cannot accommodate required parking. However, they should proactively assess the actual parking demand for their project. Unused parking spaces are equivalent to vacant commercial or residential units—an inefficient and costly investment. Not only is a parking variance a good investment, but also Transportation Demand Management strategies which help reduce parking demand can be a sound long-term investment.

If a developer or property owner secures a variance for just one parking space, they could save approximately $5,000 to $7,500 for a surface space and $25,000 to $50,000 for a garage space, with even greater savings for underground spaces. This does not include ongoing maintenance costs, which can range between $250 to $500 annually per space for surface parking and $500 to $1,200 annually per space for garage parking.

A parking consultant or traffic engineer typically charges between $5,000 to $20,000 to conduct a parking variance study, depending on the scope of work, level of analysis, and number of meetings required. If a parking variance study results in a reduction of only three surface spaces and one garage space, it pays for itself. If the parking variance application leads to a reduction of 50 spaces, the savings could be a minimum of $250,000 for surface parking and $1.25 million for garage parking, considering only development costs and not ongoing maintenance.

Beyond cost savings, obtaining a parking variance can create opportunities for additional development. A single parking space occupies between 150 and 180 square feet. When factoring in drive aisles, the total area per surface parking space ranges between 300 and 350 square feet. A 50-space parking variance could free up approximately 15,000 square feet of developable land. While some additional parking may be required for the newly developed space, the financial benefits of increased property value and revenue potential often outweigh the costs.

Reducing parking requirements also has environmental and community benefits. Excessive parking contributes to suburban sprawl and reinforces a car-centric culture, which reduces physical activity, increases vehicle crashes, heightens noise pollution, and degrades air quality. Parking is not considered the highest and best use of land, which could instead be transformed into spaces that enhance the community. Additionally, excessive parking increases carbon emissions, exacerbates the heat island effect, and contributes to stormwater runoff.

The Parking Variance Process

Applying for a parking variance typically involves:

1. Conducting a pre-application or methodology meeting with the local planning and zoning department.
2. Submitting an application with a report justifying the request.
3. Presenting the case for a parking variance to the development review committee, planning and zoning board, or commissioners.

Strategies to Support a Parking Variance Request

Several approaches can be used to justify a parking variance:

• Shared Parking: Best suited for mixed-use developments where different uses have varying peak parking periods. Some municipalities have shared parking provisions in their zoning codes, or they may rely on the Urban Land Institute’s (ULI) Shared Parking guidelines.
• Comparable Properties: Many zoning codes have outdated parking requirements that do not reflect actual demand. Studying the parking needs of similar properties can provide strong justification for a variance.
• Professional Parking Requirement References: Referencing authoritative sources such as the Institute of Transportation Engineers (ITE) Parking Generation or ULI’s Shared Parking can support a request for reduced parking requirements.
• Alternative Transportation: Projects located near robust public transit options, especially transit-oriented developments, can demonstrate reduced parking demand by analyzing comparable land uses in the area. 
• Transportation Demand Management (TDM): Implementing strategies such as bike parking, car-share services, shuttle services, unbundled parking leases, parking cash-out programs, or subsidized transit passes can help justify reduced parking requirements. Investing in TDM strategies can also have a quick pay-back period.
• Valet Service: While valet service does not necessarily reduce the total parking requirement, it can optimize parking use through off-site parking lease agreements, double parking, or car lifts, making a project viable.

Ultimately, it is in a developer’s or property owner’s best financial interest to evaluate whether their project is being subjected to outdated parking requirements and to consider a parking variance as a strategic cost-savings solution.