Parking Lots and Garages
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 2,700 parking management companies in the US provide parking space in lots and garages for motor vehicles on an hourly, daily, or monthly basis. Some firms also provide valet parking services or collection services for on-street parking meters. Firms may own parking lots and garages or may operate them on a contract basis for others, including municipal governments, hospitals, airport authorities, or commercial building owners. Large firms may also operate related transportation services, such as airport shuttle services or taxi dispatch services.
Managing Security And Safety Issues
Security and safety issues for parking lots and garages include traffic hazards, pedestrian falls, crime, and theft of credit/debit card information.
Dependence On Gasoline Prices And Economy
Demand for parking lots and garages is driven primarily by commuters to work, shoppers, airline travelers, hospital visitors, and event attendees.
Industry size & Structure
A typical parking management company employs fewer than 20 workers and generates about $4.1 million annually.
- The industry consists of about 2,700 companies with 12,000 locations that employ 125,000 workers and generate $11.2 billion in annual revenue.
- The industry is concentrated at the top with the largest 20 companies generating 53% of industry revenue.
- Large companies include SP Plus, Ace Parking Management, LAZ Parking, ABM Parking Services, Impark (Canada and US) and Park Inc.
Industry Forecast
Parking Lots and Garages Industry Growth
Recent Developments
Nov 13, 2024 - Parking Costs Higher
- The cost of parking and other fees grew 2.8% in October 2024 compared to a year ago and fell 0.4% from the previous month, according to the Consumer Price Index from the US Bureau of Labor Statistics (BLS). Employment by parking lots and garages increased 2.1% in September 2024 compared to a year ago, per the BLS. Average wages for nonsupervisory employees at parking lots and garages declined 0.7% in September 2024 compared to a year ago, reaching $16.71 per hour.
- US office vacancy rates remained steady at 19% in the third quarter of 2024 compared to the previous quarter, according to real estate firm CBRE’s 3Q office report in Facilities Dive. The US office markets tracked by CBRE in Q3 saw positive net absorption, with 4.3 million square feet of net absorption. The net absorption was up 87% from the previous quarter, marking the second consecutive quarter of positive demand for office space. This follows six consecutive quarters of negative net absorption. The report cites a shift in patterns of office attendance and interest rate cuts by the US Federal Reserve creating more favorable conditions for commercial real estate. Workplace occupancy levels are a demand indicator for parking lots and garages.
- Consumer confidence levels increased in October 2024, improving in all five components of the Consumer Confidence Index, according to The Conference Board. The index was 108.7 in October 2024 from 99.2 in September 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those between the ages of 35 to 54 and those in the income category of over $100,000. Per Peterson, “Consumer confidence recorded the strongest monthly gain since March 2021, but still did not break free of the narrow range that has prevailed over the past two years.” Plans to purchase homes and new cars rose on a six-month average basis.
- The global smart parking market is expected to grow at a 17.8% CAGR from 2023 to 2033, growing from $10.7 billion to $54.8 billion, according to a forecast released by Future Market Insights. The growth is expected to be driven by demand for efficient parking solutions spurred by technological advancements and urbanization trends. The US is the largest market in terms of market share and expected to grow at a 12.9% CAGR between 2023 to 2033 and reach $11 billion. China is also forecast to rise during the period, expected to grow at a CAGR of 28.7% and reach $9.6 billion by 2033 due to an increased population and new parking guidelines, per the report.
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