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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 2,900 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 $3-4 million annually.
- The industry consists of about 2,900 companies with 11,900 locations that employ 96,000 workers and generate $10 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 (formerly Standard Parking), Ace Parking Management, LAZ Parking, ABM Parking Services, Impark (Canada and US) and Park Inc.
Industry Forecast
Parking Lots and Garages Industry Growth
Coronavirus Update
May 5, 2022 - More than 80% Plan to Travel This Summer
- After two years of restrictions and pent-up demand, travel is expected to return in full force in 2022, which should boost demand for airport and off-airport parking as well as for parking at popular road trip and shopping destinations. More than 80% of US adults plan to travel this summer, according to a survey released in April by The Vacationer, marking an increase of 19% compared to the 2021 summer travel survey. More than 20% plan to travel internationally. Nearly 80% of those surveyed said they planned to take a road trip this summer and 51% say they plan to travel by air.
- While demand for travel is bouncing back, some consumers are scaling back their plans amid high inflation. According to a recent survey by Bankrate, nearly 70% of US adults say they are altering their summer travel plans due to inflation. A quarter of those surveyed said they would take fewer trips, and 25% also said they would travel shorter distances. About 13% said they would fly instead of driving, but 16% said they would drive instead of flying.
- Bringing workers back to the office may be one of the last holdouts for returning to pre-pandemic norms. As of February 23, the average workplace occupancy was 36.8%, according to data gathered from the top 10 ten cities monitored by security firm Kastle Systems. By April 27, the average workplace occupancy rate was 43.4%. In an ADP Research Institute survey of 32,000 workers worldwide, more than two-thirds said they would consider leaving their job if asked to return to the office full-time. The sentiment was even stronger among younger workers. More than 70% of those aged 18 to 24 years said they would leave rather than work in the office full-time. If workers never return in full numbers, parking lots that primarily serve large office complexes may face long-term decline.
- Lost revenue during the pandemic led airports to postpone facility upgrade projects. Before the pandemic, US airports had a backlog of $115 billion in necessary infrastructure upgrades, as the average US airport is more than 40 years old, according to Airports Council International-North America (ACI-NA). In late July 2021, a bipartisan group of senators agreed on the details of an infrastructure bill that includes $550 billion in new spending. The Infrastructure Investment and Jobs Act was signed into law in mid-November and included $25 billion for airports to address repair and maintenance backlogs. The COVID-19 relief bill passed in December of 2020 provided $2 billion in funding for airports. The $1.9 trillion American Rescue Plan Act that passed in March 2021 includes $8 billion in aid to airports.
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