WORTH?

Previously, we established a baseline value range for pavement postulating that 1 square foot of asphalt has a value ranging from $8 to $12 and 1 square foot of concrete has a value ranging from $15 to $20. This would mean that a 50,000 square foot asphalt parking lot (in good condition) would be worth between $400,000 and $600,000; a 50,000 square foot concrete parking lot (in good condition) would be worth between $750,000 and $1,000,000…THEORETICALLY…

You see, up to this point, we have established a valuation range based simply on the size, depth, and material content of the pavement. There is another significant factor. You know what it is. It’s a mantra we’ve all heard before; the often-touted, never-doubted, single most important defining factor of every mouth-watering piece of real estate on God’s green earth…LOCATION, LOCATION, LOCATION.

For example, at the time of this writing, there just happens to be a 25,000 square foot asphalt parking lot for sale...in Texas…with an asking price of $420,000. That’s almost $17 per square foot and it’s asphalt, not concrete. Preposterous, you say?! Well, this little parking lot is located right smack dab in the middle of downtown in beautiful Beaumont, Texas. Quite the nifty little spot…and perhaps worth the additional cost, especially when considering the installed lighting and landscaping.

Now that we have a better idea of what pavement is worth (in good condition), regardless of location, we can better understand the value of proper pavement maintenance. Pavement has a lifecycle. This lifecycle can be shortened with inaction or neglect…or this lifecycle can be extended with preventative and corrective maintenance. Until next time.

Justin Dooley 01/24/25