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
Jul 16, 2024 - Employment, Prices Up
- Employment by parking lots and garages increased in the first five months of 2024 while industry wages were mostly unchanged, according to the US Bureau of Labor Statistics (BLS). The cost of parking and other fees grew 4.7% in June 2024 compared to a year ago and fell 0.8% from the previous month, according to the Consumer Price Index, per the BLS.
- The global smart parking market is expected to grow at a 17.8% CAGR from 2023 to 2033, growing from $10.7 billion to $54.8 billion, according to a forecast released by Future Market Insights. The growth is expected to be driven by demand for efficient parking solutions spurred by technological advancements and urbanization trends. The US is the largest market in terms of market share and expected to grow at a 12.9% CAGR between 2023 to 2033 and reach $11 billion. China is also forecast to rise during the period, expected to grow at a CAGR of 28.7% and reach $9.6 billion by 2033 due to an increased population and new parking guidelines, per the report.
- 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 June 2024, after an uptick in May, according to data from The Conference Board. The Conference Board’s consumer confidence index was 100.4 in June 2024 from 101.3 in May 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those under age 35 and those in the income category of over $100,000. Plans for large appliance and smart phone purchases rose on a six-month basis, while plans for car purchases stalled.
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