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 $3 million annually.
- The industry consists of about 2,700 companies with 12,500 locations that employ 115,000 workers and generate $8 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
Mar 11, 2024 - Employment Levels, Wages Up
- According to the Bureau of Labor Statistics (BLS), employment by parking lots and garages has continued to increase in recent years, as the industry continues to recover from a massive setback in 2020 at the beginning of the pandemic. Employment grew for much of 2023, reaching a high point in Q4 2023. Even with growth following the pandemic, employment is still 15.5% lower than pre-pandemic figures. According to the BLS, wages for employees at parking lots and garages grew 10.2% higher in December 2023 from December 2022, as employers continue to compete for workers in a tight labor market. Additionally, consumer spending levels rose in the last half of 2023, a 3.1% increase in the third quarter and 2.8% in the fourth quarter, according to Reuters.
- 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.
- Parking lot and garage operators will have to monitor minimum wage changes, as 22 states increased their minimum wages in January 2024, according to USA Today. About half of the increases are automatic adjustments linked to inflation. States that raised their minimum wages in January 2024 include Hawaii ($14), Maryland ($15), Nebraska ($12), and Washington ($16.28). Several states are set to boost their minimum wage levels later this year, including Florida (up to $13 in September) and Nevada (up to $12 in July). According to the Economic Policy Institute, nearly 40 US cities and counties will increase their minimum wage rates above state levels at the start of the new year. The federal minimum wage is $7.25 an hour, and more than 20 states, primarily located in the South and the Midwest, use the federal minimum as their wage floor.
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