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
                                      Source: Vertical IQ and Inforum

                                      Recent Developments

                                      Mar 13, 2023 - Parking Operators See Strong Rebound
                                      • Americans are driving at levels greater than in 2019, and parking operator revenue is expected to fully recover in the second half of this year, according to the National Parking Association's (NPA) Road to Recovery Index. The parking industry is projecting $580 billion in revenue by the end of 2023, outpacing the 2019 baseline by 2% and 2022 revenue growth by 10%. The parking rebound is supported by increased travel and tourism, a return to in-person work, and greater industry automation. Airport and event parking were the fastest categories to rebound, with 26% and 16% increases, respectively, in the first half of 2022 compared to 2019. Most major parking operators plan to increase their workforces and the number of parking spaces in 2023. NPA President Christine Banning states, “A focus on consumer experience, automation, and diversifying services has fueled a rebound across sectors.”
                                      • More workers are heading back into the office, with office occupancy remaining above 50% for the third time in 2023, according to Kastle’s 10-city Back-to-Work Barometer. Half of the cities tracked in the barometer for February 22 through March 1 increased during the week, and Austin, Chicago, Dallas, Houston, and Washington, DC, achieved occupancy rates above the 10-city average. The daily high in occupancy occurred on Tuesday and Wednesday, with an average of 58% on both days, while the daily low was on Friday at about 33%. Kastle’s data shows higher occupancy rates than last year, as more employers require workers to return to the office. The week marks only the third time since the pandemic started that office occupancy exceeded 50%, which the report says indicates “a genuine move toward recovery.” Law firms are showing higher occupancy, at nearly 62% for the seven-city average in the legal barometer, compared to other industries. Demand for office parking in city centers will increase as more workers return to their offices regularly.
                                      • The global smart transportation market is projected to reach $285.1 billion by 2030, expanding at 13% CAGR from 2023 to 2030, according to Grand View Research. The need for an efficient management system for seamless transportation services is expected to grow as existing transportation infrastructure becomes ineffective with a rising number of cars on the road. Parking management systems are expected to emerge as the fastest-growing solution segment during the forecast period. Per the report, “The parking management system is expected to boost growth, owing to increased urbanization. It has resulted in increasing parking resource prices and a reduction in real estate space, which are expected to drive market growth.” Cloud services are expected to be the fastest-growing service segment during the forecast period, as solutions are needed to manage data and storage. The Asia-Pacific market is projected to be the fastest-growing regional segment.
                                      • A new law in California no longer requires housing developers and business owners to allot parking spots for residents and patrons if the project is located at least a half mile away from public transit, according to CBS8. The new law, effective in 2023, allows developers to decide if they want to include parking in their plans. Excluding parking can significantly lower the cost of a project. The law’s goal is to make housing more affordable and to prompt the redevelopment of aging businesses. The new law allows the state to sue any municipality for implementing parking requirements. Some cities in California, such as Los Angeles, San Diego, and San Francisco, already have similar policies to help promote more affordable housing development.
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