Parking Lots and Garages NAICS 812930

May 22, 2025 - Slower Growth Forecast

• Sales for the US parking lots and garages services industry are projected to grow at a CAGR of 2.73% between 2025 and 2029, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected growth rate is slower than the overall economy‘s anticipated growth. Parking lots and garages are part of the “other services sector,” which is driven by consumer spending, along with expenditure by businesses. Consumer sentiment is expected to improve in the forecast period, which bodes well for the various services industries, including parking lots and garages. Factors that may limit consumer spending are higher tariffs on consumer goods. Many segments of the other services sector are recovering from a downturn during the pandemic. Remote work practices created lower demand for mass transit, parking lots and garages, office space, and other personal and business needs related to commuting and working in corporate environments.
• According to the National Parking Association’s first edition Parking Pulse Report, parking operators report growth opportunities in dynamic pricing (34%), amenity services (32%), mobility hubs (14%), EV infrastructure (11%), and transportation services like shuttles (9%). Areas of concern include revenue growth (29%), economic uncertainty (25%), and acquiring and retaining talent (24%). Parking operators identified their top growth factors, which include technology, increasing parking occupancy, raising rates, employee retention, and dynamic pricing. Over 80% of parking operators are optimistic about the future, with nearly half expecting 10% or more revenue/location growth. The top near-term success drivers for parking operators include increasing automation and tech usage (46%) and acquiring more locations (24%), while long-term success drivers are tech advances and automation (43%) and increased return-to-office (21%).

• 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 eight industries reporting employment growth in April’s Services ISM Report on Business. Executives in the industry also reported slower deliveries, a decrease in inventories, a decrease in order backlogs, and higher prices paid for materials and services. Industries reporting growth during the period included Accommodation & Food Services; Wholesale Trade; Mining; Real Estate, Rental & Leasing; Retail Trade; Art, Entertainment, and Recreation; Health Care & Social Assistance; Transportation & Warehousing; Information; Educational Services; and Utilities. The six services industries reporting contraction during the period were Agriculture, Forestry, Fishing & Hunting; Professional, Scientific & Technical Services; Finance & Insurance; Management of Companies & Support Services; Public Administration; and Construction. Overall, economic activity in the services sector expanded in April, with the Services PMI registering 51.6%.