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
                                      Source: Vertical IQ and Inforum

                                      Recent Developments

                                      May 13, 2024 - Office Vacancy Rates Remain High
                                      • US office vacancy rates reached a 30-year high of 19% in the first quarter of 2024 compared to 17.8% in the same quarter a year ago, according to real estate firm CBRE’s 1Q office report in Facilities Dive. The majority of the 57 office markets tracked by CBRE in Q1 saw negative net absorption, meaning more space was vacated than leased. Still, tenant downsizing has slowed in the past 12 months as part of a gradual rebound, according to a JLL report on Q1 US Office Market Dynamics. The report expects office leasing to reach 85% of pre-pandemic levels in 2024. Workplace occupancy levels are a demand indicator for parking lots and garages.
                                      • Consumer confidence levels fell in April 2024 from March 2024, marking a third consecutive month of weakness, according to data from The Conference Board. The Conference Board’s consumer confidence index was 97 in April 2024 from 103.1 in March 2024. According to Dana Peterson, Chief Economist at The Conference Board, “Confidence retreated further in April, reaching its lowest level since July 2022 as consumers became less positive about the current labor market situation, and more concerned about future business conditions, job availability, and income.” Peterson added that confidence declined among consumers of all age groups and for all income groups except those in the $25,000 to $49,999 range. Plans for vacations, home purchases, and large appliances decreased on a six-month basis.
                                      • A new report from technology market research firm Juniper Research found that smart parking spaces in cities are projected to grow 182% globally by 2028. The number of spaces is expected to grow from 5.8 million in 2024 to 16 million in 2028. Smart parking incorporates sensors and real-time data to inform road users about the closest parking spaces through signage, apps, or dashboards. Smart parking can also reduce congestion and vehicle emissions as drivers look for a parking spot. The report suggests that municipalities should consider investing in and implementing smart parking initiatives within highly congested cities and incorporate dynamic pricing to ease congestion issues. According to research author Cara Malone, “With more data than ever available and the low latency that 5G provides, parking solutions have become highly responsive. In cities where on-street parking is a major issue, dynamic signage can be deployed to utilise available parking more efficiently at quieter times; significantly reducing congestion.”
                                      • Some parking garages are beginning to implement new security measures, such as autonomous robots, to augment their security and deter crime, according to an article in the Greeley Tribune. The LoDo Towers parking garage in Denver, Colorado, has leased two robots to surveil the property using pre-programmed routes. If someone lingers too long in the garage, the robots will notify a human security officer to investigate. The robots, which are about 5 feet tall and 3 feet wide and weigh 420 pounds, can detect fire and gunshots and make emergency communications. They also record video on their routes. Since incorporating the robots more than a year ago, the garage says it has seen a 70% drop in car thefts and vandalism. The company that made the robots, Knightscope, said the robots are deployed in a range of properties, including parking garages, office buildings, airports, hospitals, and manufacturing sites.
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