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
Jan 21, 2025 - Portland, San Francisco Have Highest Parking Construction Costs in Q3
- Portland was the US city with the highest average construction cost in Q3 at $240 per square foot for ground parking space while San Francisco had the highest average construction cost at $300 per square foot for basement parking space, according to a Statista report of average parking construction costs. Meanwhile, Phoenix had the lowest average parking construction costs in Q3 at $80 per square foot for ground level parking space and $123 per square foot for basement parking space. Employment by parking lots and garages increased 3.7% in October 2024 compared to a year ago, per the BLS. Average wages for nonsupervisory employees at parking lots and garages rose 0.6% in October 2024 compared to a year ago, reaching $16.97 per hour.
- While some covered parking lots in the US have solar panels, France is taking it a big step further, according to MSN. France recently implemented new regulations requiring the installation of photovoltaic panels on both existing and newly constructed large parking lots. Parking lots must have at least half of the parking lot’s area covered with solar panels. According to the report, managers of parking lots with a capacity of 80-400 cars have until 2028 to comply and owners of lots with a capacity of more than 400 cars have until 2026 to comply. Failure to meet the deadlines will result in fines.
- Consumer confidence levels declined in December 2024, falling by 8.1 points from the previous month, according to The Conference Board. The Consumer Confidence Index was 104.7 in December 2024 from 112.8 in November 2024. Dana Peterson, chief economist at The Conference Board, noted that those remaining most confident on a six-month moving average basis confidence were those aged under 35 and those in the income category of over $100,000. Per Peterson, “The recent rebound in consumer confidence was not sustained in December as the Index dropped back to the middle of the range that has prevailed over the past two years.” Purchasing plans for homes decreased while plans to buy new cars and big-ticket items rose in December 2024 on a six-month average basis.
- 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.
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