Parking Lots and Garages NAICS 812930

Nov 20, 2025 - Lithium-Ion Battery Risks Rise for Garages

• According to a report in Parking Today, lithium ion battery risks from electric vehicles are creating new operational and safety challenges for parking lots and garages. As EV adoption rises, the potential for thermal runaway, a process that can trigger fires or explosion, poses heightened risks in enclosed or multi story facilities. Engineering studies highlight that ventilation design, congestion reduction, and pressure relief panels are critical to mitigating explosion hazards, while sprinkler density and structural fireproofing are key to controlling fires. The report notes that counterfeit batteries and charging activity increase the likelihood of incidents, making proactive monitoring and off gas detection systems important safeguards. For parking operators, the findings underscore the need to invest in both retrofits and new design standards to protect assets, ensure compliance with evolving codes, and maintain customer confidence.
• While 11 services industries reported growth in October, six industries reported a contraction, including the Other Services industry, which includes providers of temporary parking services, according to the latest ISM Services PMI Report. Executives in the Other Services industry reported increases in new orders and prices paid for materials and services, along with decreases in employment, order backlogs, inventory sentiment, imports, and inventories in October. Other industries reporting contraction during the period include Arts, Entertainment & Recreation; Management of Companies & Support Services; Finance & Insurance; Public Administration; and Construction. Industries reporting growth during the period were Accommodation & Food Services; Retail Trade; Wholesale Trade; Real Estate, Rental & Leasing; Health Care & Social Assistance; Utilities; Transportation & Warehousing; Agriculture, Forestry, Fishing & Hunting; Information; Professional, Scientific & Technical Services; and Educational Services. Overall economic activity in the services sector returned to expansion in October, registering 52.4%.

• The National Parking Association’s latest Parking Pulse Report reveals strong optimism across the parking industry, with 82% of respondents anticipating growth in locations and revenue in 2026. Sponsored by Metropolis, the sentiment study establishes a benchmark for economic confidence and highlights technology and automation as key drivers of future success. While optimism prevails, economic uncertainty has risen to 46%, up from 25% in 2024, signaling a need for strategic resilience. The top five growth factors for the parking industry identified by the report were technology (49%), increasing parking occupancy (22%), dynamic pricing (11%), employee retention (10%), and raising rates (8%).
• Weaker consumer confidence in late 2025 may create challenges for parking lot and garage operators as households cut back on discretionary travel and spending. The Conference Board’s Consumer Confidence Index slipped to 94.6 from 95.6 in October, with stronger current conditions (129.3) offset by weaker short term expectations (71.5). Inflation expectations rose to 5.9%, and more than half of consumers anticipated higher interest rates. Meanwhile, the University of Michigan’s Index of Consumer Sentiment fell 2.7% month over month to 53.6 in November, down 24% year over year, with the Expectations Index dropping 32.1% annually to 50.3. For parking operators, this environment suggests potential declines in demand for paid parking tied to shopping, dining, and leisure activities, as consumers limit discretionary outings. At the same time, deal focused behavior may increase reliance on promotions or bundled offers. Operators will need to balance pricing strategies with service quality to sustain occupancy and revenue amid heightened uncertainty.