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
Mar 21, 2025 - Remote Work Policies Expected to Remain for Many Workplaces
- Despite some high profile companies and government entities issuing Return to Office (RTO) mandates, a recent survey shows that only 12% of executives with hybrid or fully remote workers plan on issuing RTO policies in the upcoming year; workplace occupancy is an indicator of demand for parking lots and garages. Companies such as JP Morgan Chase, Amazon, and AT&T, as well as the federal government, have recently announced RTO policies. According to the study from Stanford and the Federal Reserve Bank of Atlanta’s Survey of Business Uncertainty, the executives who do plan an RTO in 2025 do not expect to make a full return to onsite work but will instead require employees work only one to four days a week in office. Researchers say the expected shifts to onsite work in 2025 will only reduce the share of paid workdays that are work-from-home from 21.2% to 20.8%.
- Temporary parking services, included in the “Other Services” category, is one of the 14 industries reporting growth in February’s Services ISM Report on Business. Executives in the industry reported increases in business activity, new orders, and employment, while reporting slower deliveries, decreased inventories, and higher prices paid for materials and services. Services industries reporting growth during the period included Finance & Insurance; Other Services, Utilities; Agriculture, Forestry, Fishing & Hunting; Mining; Real Estate, and Rental & Leasing. The three services industries reporting contraction during the period were Management of Companies & Support Services; Retail Trade; and Educational Services. Overall, economic activity in the services sector expanded in February, with the Services PMI registering 53.5%.
- 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.
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