Parking: The Under-Utilized Asset
Ruth Goodwin
Whether we’d like to believe it or not, many North American cities were built to accommodate cars, even more than for people.
With cars being at the forefront of how we move, where we park becomes a major issue in how we access employment, service. and recreational premises. However, many property owners and real estate professionals don’t realize the opportunity that this brings.
Parking is a highly underutilized asset that can be leveraged better to meet the increasing demand coming from reduced minimum parking requirements and increasing vehicle sales. Various advances in parking tech make it so much easier to earn more from your parking assets.
However, it begins with understanding how valuable your parking spaces really are:
The parking industry is expected to grow 3.9% in 2022 and has a market size of $8bn
According to the International Parking Institute, the parking industry generates more than $20 billion annually in revenue
The United States has more than 105 million parking stalls
Parking can boost the NOI of a property thus increasing property value
Parking garages/mixed-used assets have low-recurring capital requirements compared to more traditional real estate assets.
The construction of urban, mixed-use development, in addition to other commercial and residential construction, is expected to increase, further driving growth in demand for parking services
In a post Covid world, people are shifting away from public transit and more towards driving. With more vehicles on the road, the available parking spaces are also dwindling. As a result, parking spaces are a valuable commodity. With the demand for parking increases, parking garages/mixed use assets have a real opportunity to leverage their unused spaces.
The existing supply of parking, especially in urban areas, provides an exciting opportunity for those interested in boosting or expanding their existing revenue streams. With the proper tools and resources, parking facilities can provide a consistent and stable income, with the prospect of long-term revenue growth potential.
Implementing new strategies such as introducing technology to help facilitate and manage existing parking assets can have a huge benefit. Companies can now manage lot enforcement, payments, and visitor restrictions creating an easy way to passively earn extra income by renting out unused space. For consumers, this means more available parking spaces at better rates, especially in more urban environments. For business owners/property managers it means turning a once unused or under-utilized asset into a new revenue stream.
Parking can is often an overlooked and underused asset. With access to new technologies and an understanding of how valuable parking is, you can turn slab of concrete into a stable income source, all while offering a much-needed service.
Monetize your Spaces
Contact one of our dedicated team members today.
Author: Sam Robins is a Business Development Specialist at WhereiPark. He specializes in working with multifamily property owners to help them create a new stream of ancillary revenue via their underutilized parking assets. He’s worked with some of the nation’s largest multifamily companies such as Avalon Bay, Greystar, Essex, Equity Residential, Bozzutto, and more.