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 2,900 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
Recent Developments
Nov 10, 2022 - Software Platform Integrates City Parking Data
- Parking software firm Umojo has developed a platform called NexCity that helps municipalities analyze and manage parking infrastructure and improve safety. NexCity integrates parking data from mobile apps, enforcement vendors, and parking meters into one platform to generate a “Curbscore” that rates the safety and efficiency of the entire parking system. The platform can then make recommendations about how tweaks can be made to maximize revenue, make streets safer, and improve parking efficiency.
- Some real estate developers are holding off on new office projects as remote work has eroded demand for new office space and rising interest rates make projects more expensive, according to The Wall Street Journal. Office occupancy is only about half of what it was before the pandemic, which has prompted some major real estate firms, including Varnado Realty Trust; Hines, Kilroy Realty Corp.; and Brookfield Asset Management, to tap the breaks on new office development projects. The national office vacancy rate is currently 12.5%, up from 9.6% in 2019, according to commercial real estate data firm CoStar Group. About 37% of the office space currently under development remains available, which is double what it was in 2019, according to CoStar. If remote work remains a persistent trend, it could reduce long-term demand for office parking in city centers.
- Federal dollars from the Infrastructure Investment and Jobs Act (IIJA) have begun flowing to all 50 states to fund the addition of electric vehicle (EV) charging infrastructure, according to NPR. The IIJA includes $5 billion for beefing up US EV charging infrastructure over five years. So far, states have been approved for about $1.5 billion in project funding, which can include building new chargers, maintaining existing ones, signage directing drivers to charging stations, and other directly related expenses. Industry watchers suggest funding under the IIJA will only meet a fraction of total US charging needs, but the government dollars could help jump-start more private investment.
- Covered parking lots with solar panels are rare now, but some solar industry watchers believe they could become more common, according to CNET. Building solar panels for covered parking is about 40% more expensive than building on the ground due to higher materials, labor, and engineering costs, which has slowed their adoption, according to Inovateus Solar. However, some industry experts suggest that one day solar covered parking could power free electric vehicle (EV) charging stations, which would attract a following as EVs gain in popularity. Michigan State University has solar panels over five of its covered parking lots, and it estimates they will save the school $10 million over 25 years.
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