How to Start a Parking Lot Business

Parking lots are located in places where street parking is limited and there is plenty of automobile traffic. Parking may be offered in exterior open lots or in interior secured garages.

Parking lots are found in commercial areas, next to airports, near hospitals, adjacent to schools, and near event spaces that attract a large crowd.

There are two facets in the parking lot business. One is the owning and operating the parking lots and the other opportunity is managing the parking lots on behalf of other owners.

Learn how to start your own Parking Lot Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Parking Lot Business Image

Start a parking lot business by following these 10 steps:

  • Plan your Parking Lot Business
  • Form your Parking Lot Business into a Legal Entity
  • Register your Parking Lot Business for Taxes
  • Open a Business Bank Account & Credit Card
  • Set up Accounting for your Parking Lot Business
  • Get the Necessary Permits & Licenses for your Parking Lot Business
  • Get Parking Lot Business Insurance
  • Define your Parking Lot Business Brand
  • Create your Parking Lot Business Website
  • Set up your Business Phone System

We have put together this simple guide to starting your parking lot business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

  • What are the startup and ongoing costs?
  • Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Parking Lot Business Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

  • Your state's business records
  • Federal and state trademark records
  • Social media platforms
  • Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your parking lot business?

Business name generator, what are the costs involved in opening a parking lot business.

Initial startup costs include the rental or purchase of the lot/garage, purchase or lease of equipment, such as transaction machines, lift gates, and security cameras. Garages are more expensive, and costs are much higher for multilevel garages equipped with elevators.

In smaller cities, it is possible to start with a single small outdoor lot for less than $10,000 in startup capital if you lease the land. An indoor garage can cost many hundreds of thousands of dollars and upwards to millions depending on its size and location.

What are the ongoing expenses for a parking lot business?

Parking lots are relatively low-maintenance businesses. The majority of work that goes into maintaining a parking lot involves repainting lines, replacing signage, and paying for lighting (and possibly heat) if it is a garage.

Typical monthly expenditures for a small outside lot will be around $5,000 per month consisting of:

  • Rent or Mortgage payment $2,000 per month ($0.50 per square foot per month).
  • Wages for parking lot attendants - $2,240 per month ($10 per hour = 56 hours per week) Double this amount if open at night as well as in the day.
  • Employer’s portion of employee taxes $336 per month
  • Utilities - $200 per month (lighting)
  • Insurance - $100 per month
  • Supplies - $100 per month (parking lot receipt tickets)

Who is the target market?

Parking lots are used by customers because of the convenience of parking near something else. The customers are those that drive by the parking lot.

How does a parking lot business make money?

Most parking lots make money by filling up the empty spaces with cars that pay an hourly rate or flat rate for the parking. Parking lots are especially profitable during peak traffic in larger cities. For example, many lots take advantage of the number of drivers in town during sports games and those attending other big events.

For a parking lot company that offers parking lot management services, they are paid a monthly fee that is based on the revenues produced by the parking lots they manage for other owners.

The price you can charge depends on the demand for parking and the nearby competitive prices. In rural areas, $1 per hour is very common. In major metropolitan areas that are very congested, with extraordinarily high real estate prices, such as New York City, it is possible to charge up to $15 for fifteen minutes ($60 per hour).

How much profit can a parking lot business make?

One small lot with 20 spaces that earns, on average, $10 per space per day will have $200 per day in gross revenues and earn $73,000 in gross revenues per year. If the lot is outdoors and 4,000 square feet at $0.50 per square foot per month rent, the annual rent will be $24,000. Wages paid at minimum wage level for parking lot attendants will be about $20,800 per year, leaving $28,200 in gross profits before taxes from a single, small parking lot.

Large parking lots can have many hundreds of parking spaces, which is a multiplication of these basic profit estimates.

How can you make your business more profitable?

The parking lot business becomes more profitable through economies of scale. Owning more parking lots that use the same back office and support services is the key to growth and increasing profits. In addition to management of parking services, the business can expand to offer other support services to commercial building owners such as energy monitoring, facilities engineering, HVAC, janitorial, maintenance, and landscaping.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your parking lot business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

  • Separates your personal assets from your company's assets, which is necessary for personal asset protection.
  • Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

  • Separate personal and business expenses by putting your business' expenses all in one place.
  • Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a parking lot. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Certificate of Occupancy

A parking lot is either located in an empty lot of land or a large parking structure. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.

If you plan to lease a location:

  • It is generally the landlord’s responsibility to obtain a CO.
  • Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a bar.
  • After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.

If you plan to purchase or build a location:

  • You will be responsible for obtaining a valid CO from a local government authority.
  • Review all building codes and zoning requirements for your business’ location to ensure your parking lot business will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Parking Lot Business needs and how much it will cost you by reading our guide Business Insurance for Parking Lot Business.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a parking lot business

These businesses are especially dependent upon location. Parking lots and garages located near other lots have stiff competition. One thing that helps attract customers is to have the parking lot attendant wave to the passing cars to encourage them to enter the parking lot.

How to keep customers coming back

Giving out discount coupons helps attract new customers. Having a loyalty reward program that offers discounts for regular users is a good way to retain customers.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

  • All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
  • Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
  • Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

TRUiC's Startup Podcast

Welcome to the Startup Savant podcast , where we interview real startup founders at every stage of the entrepreneurial journey, from launch to scale.

Is this Business Right For You?

This business is an attractive investment opportunity for those investors with capital to invest in the leasing and/or acquisition of parking lots, who are looking for a long-term, fairly stable rate of return on the investment. The alternative is setting up a service company to manage the operation of the parking lot/services for other owners.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a parking lot business?

Once setup, this business runs almost automatically. The business owner’s concerns are hiring staff and making sure the parking lot attendants show up on time to do their job. Another duty of the owner is to manage the cash deposits, get change from the bank, and create the accounting records for the daily proceeds.

What are some skills and experiences that will help you build a successful parking lot business?

Success in this business comes from identifying the opportunities that are profitable. The ability to analyze each situation to determine potential parking demand and calculate the revenues versus the expenses is the key factor in becoming a success.

What is the growth potential for a parking lot business?

Many investor/owners start with a single parking lot and then invest in other lots to grow the business. Parking lot opportunities include commercial office buildings, retail operations, shopping malls, mixed-use facilities, hotels, valet services, arenas, stadiums, events, medical centers, and hospitals.

One large parking lot management company called Ace Parking started in 1950 with a single parking lot. The company has steadily grown since then. Ace Parking now manages 450 parking lots across America and employs more than 4,500 people.

In the Unites States, Statistic reports that there are over US $10 billion in revenues earned each year from parking lot operations. IBISWorld reports that there are over 10,000 parking lot businesses in the USA that employ close to 160,000 people. The top three companies in this industry control a large share of the total market, earning 37.6% of the total industry revenues each year. Small operators make up the remaining 62.4% of the industry and mostly cater to the local market demand for parking.

Besides Ace Parking, the other largest operators include ABM Industries Inc. and Central Parking Corp., which merged with Standard Parking Corp. during 2012.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a parking lot business?

It is a good idea to work as a parking lot attendant for at least a short period to understand how this business works. This business is not complicated and virtually anyone can do it, as long as they have, or can raise, the capital necessary to get started.

How and when to build a team

This business operates with very few employees per lot. When the business grows, by acquiring more parking lots, it is time to add more parking lot attendants for each new lot added to the business. It is very easy to find minimum wage workers to be parking lot attendants because the job skills necessary are minimal.

Useful Links

Industry opportunities.

  • International Parking Institute

Real World Examples

  • California - Ace Parking Management
  • Detroit, Michigan - Prime Parking

Have a Question? Leave a Comment!

  • Parking Services

The Future of Parking: Top 3 Trends That Are Shaping Car Parking Operations

October 1, 2022

The Future of Parking: Top 3 Trends That Are Shaping Car Parking Operations

Connected, digitized, and sustainable—advanced technologies are rapidly reforming the future of parking.  As automated payment systems and self-driving vehicles become the norm, we look at a new age of car parking operations.

Everyone from residential and commercial to public property owners is integrating technological solutions into their business models. As new trends for parking emerge, collaborations with carpark maintenance and management providers become a must. Expert support allows you to tackle potential problems and accommodate the growing demand of a hyper-aware, tech-driven audience.

    This article highlights top mobility trends and how to adopt them.

The Premise: What Does the Future of Parking Look Like?

Future of Parking Concept

The global car parking operations and management industry continue to expand with the rise of technology.

Recent trends in parking and reports reveal that the sector can generate an estimated “ CAGR of 11.1% from 2022 to 2030 .” It’s a significant uptick in numbers from the industry. Thanks to the continued growth of automated cars, digitized operation systems,  and sustainable architectural choices for parking spaces.

Here’s a closer look at what the future of parking looks like:

1.  Automated Car Parking Operations

A report on Science Direct states that it takes more than seven minutes for drivers to find a good parking space.

An estimated 30% of vehicles in metropolitan cities experience this delay. Due to this, the city collectively wastes a significant amount of fuel and produces air pollution.

In addition, drivers feel frustrated at the lack of parking space.

Automated parking systems are an immediate solution to this problem. It maximizes efficiency by eliminating the delays caused by manual car parking operations.

How Does It Work?

Automated parking systems (APS) provide electronic valet parking services to visiting vehicles for residential areas, offices, and commercial centers. These facilities require drivers to stop at an entrance area. The AI-powered system scans the vehicle to determine its size. Then, a digital survey of empty parking lots is conducted to find a space-saving slot for the vehicle.

Drivers and passengers vacate the car. One has to pick up a parking ticket and leave the entrance area. Sensors detect whether someone’s inside the car. The empty car will be shifted to the available parking slot with a mechanical system that drives them from the entry point to the parking area.

The automated parking system returns the car when the driver submits a relevant request.

Innovating robots for automated parking systems supports higher efficiency and sustainability.  It only utilizes vertical space and doesn’t require drivers to search for available parking space manually. These facilities reduce parking lots’ accidents because pedestrians and drivers are no longer an active part of the process.

2.  Tracking Parked Cars and Empty Spaces via the Internet

The Internet of Things (IoT) is an excellent addition to our list of trends for parking and mobility. Online communications between parking apps and electric cars make way for contactless and optimized operations.

Drivers prefer the safety and comfort of using e-payment systems and parking reservation apps to schedule trips to public/commercial spaces. Through it, riders can book a spot in a vacant parking lot before arrival. It saves time and energy you’d waste on finding a decent spot.

Online car parking operations provide drivers with a real-time view of their destination through a secure website or app service. Intelligent technology can track parking lot capacity, directing drivers to vacant spaces whenever required. It’s an advanced version of conventional green-red light systems that became popular years ago.

End-users consider this always-on system as highly efficient, secure, and convenient. Alternatively, property developers can use it to eliminate unfilled parking areas.

One can utilize those wasted spaces to upgrade citywide infrastructure. Businesses can create resting areas, playgrounds, and other functional areas adjacent to the primary building.

In addition, the future of parking includes vehicle-to-vehicle communication (V2V). The setup uses online communication to create dynamic parking systems for cars. In this case, intelligent cars can sense oncoming vehicles and respond accordingly. For example, these vehicles can create space to move, park, or charge when they receive a new signal from other cars.

3.  Self-Driving Cars Are Changing the Future of Parking

Self-driving cars are another breakthrough innovation for car parking operations. Inventors aim to make these vehicles more affordable and accessible as the years go by to make them more commonplace.

Their presence can revolutionize parking procedures.

Parallel parking remains a major hurdle for new drivers. Self-driving and self-parking cars overcome these road challenges with ease. Most modern cars have a built-in system that uses AI to park the car regardless of the direction or situation.

These robotic cars can park themselves closer to each other. They are making room for more cars in a single parking facility. These smart cars also reduce parking-related accidents, automatically protecting drivers from the costly consequences of reckless parking practices.

Once again, it is one of the trends for parking that increases the efficiency and effectiveness of car parking operations.

The Game Plan: How Can We Help You?

car park business model

Parking Concepts, Inc. offers turn-key solutions for car parking operations. Whether you run a shopping complex, overlook residential housing societies, or are in charge of a private parking lot, we can help.

Our consulting agency handles everything from parking management, maintenance, and one-off events. We also offer valet parking services upon request.

Regarding the future of parking, we work as your trusted guides. We can help you navigate evolving trends and invest in technologies that align with your end goals.

Here’s a sneak peek of the advantages we offer:

1. We Help You Keep up with Trends for Parking

It can be challenging to chase trends while running an active business. You also wind up investing in a popular parking invention, then realize that it doesn’t add value to your business model.

As your operator, we assess the benefit of each new technology and adoption before your investment. We also restructure business models and parking zones to make room for the new and improved technological features.

2.  Cost-Effective Parking Management and Maintenance Solutions

Parking Access Revenue Control Systems (PARCS) has become a valuable asset for commercial, business, and residential sectors. The initiative encourages parking facility owners to upgrade outdated meters and surveillance systems with cutting-edge technology.

Parking Concepts, Inc. utilizes a diverse combination of smart equipment, software, and digitized services to support your PARCS plans. You can use our extensive network to appoint manufacturers and suppliers that support your remodeling plans at an economical price.

Besides planning and implementation, your dedicated advisor will schedule routine maintenance checks. It’ll help us detect potential problem areas and address those structural, mechanical, or online issues before it creates problems for your end-users. Our quick thinking and resourcefulness can save thousands of dollars on yearly repairs.

3.  Boost Revenue Growth by Updating Price Plans

The benefits of automated parking systems and e-payment machines are numerous. You can capitalize on new technology by developing ROI-generating price plans.

You can start by installing advanced e-payment parking systems accepting transactions from several sources. Consequently, this change makes parking plots accessible to drivers from different backgrounds.

Aside from this, car parking operators and administrative teams can adjust service charges according to peak and off-time. Operators can influence parking behaviors by setting a high price on spots close to the main building. This way, drivers will stop circling the area for available spots in a specific section.

The reconfiguration of pricing strategies can increase revenues and also prevent reckless double-parking.

In a Nutshell

The introduction of contactless parking payment systems and automated electronic vehicles has accelerated our reliance on technology. Therefore, car parking operations can no longer thrive without digital transformation.

It holds for the country’s commercial, corporate, and residential property owners and car parking facilities. Remember that parking spaces are the first and last point of contact between you and key audiences (i.e., clients and workers). If you fail to meet the expectations of a tech-savvy generation, you might experience costly setbacks.

Luckily, we are here to assist you by ensuring your business operations can accommodate these growing demands. Appoint our expert advisors, parking lot management, and maintenance teams to overcome emerging challenges. We strive to find sustainable, cost-effective, and accessible solutions for you (and your clients).

Our attention to detail, resourcefulness, and tech-based services has resulted in countless successful collaborations. We’d love to add your name to this journey.

Are you ready for the future of parking?

Contact us today for further inquiries and proposals.

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The future of multi-storey car parks.

Multi-storey car parks (MSCPs) – traditionally seen as unloved and utilitarian monoliths – are on the cusp of a new era. Technology and changes in public policy are set to transform our understanding of the nature and purpose of MSPCs, as our relationship with cars changes markedly. This revolution in how we drive and how we park will present a number of conceptual challenges for those who design MSCPs, as well as for their owners. In this Insight paper, Adrian Griffiths examines what the future may have in store for MSCPs, and discusses how designers and operators will need to respond.

A199 Brcr Northern Retail Quarter Charles Sq Bracknell Uk N36

What is bringing about the changes?

The transformation of the car parking sector is being brought about by technological advances in a number of areas, including:

  • The increasing adoption of electric vehicles (EVs)
  • More sophisticated mobile app technology
  • The spread of automatic recognition technology
  • Trials of autonomous vehicles

We are also seeing changes in public policy and social awareness, including:

  • Policies to unclog town and city centres
  • A move away from the use of fossil fuels
  • An end to the domination of urban centres by retail in favour of a mix of uses
  • An increase in bicycle use

These changes, and ever-rising population numbers, are beginning to alter the role of MSCPs. While the traditional conception of MSCPs is still strong and has a few years of life left in it, the format will not be able to withstand the coming fundamental changes for long.

I Stock 1074203130

What changes can we expect?

Electric vehicles

In the medium term, the pressing necessity will be to adapt to the needs of electric vehicles, including cars, vans and bikes. Only a tiny fraction of the UK’s current parking capacity caters for EV charging at present.

There is no doubt that EVs are the future of private road transport – the UK and France will be banning the sale of new petrol and diesel vehicles by 2040, while Norway and the Netherlands will have done so by 2025. As charging capability is crucial to the parking choices made by EV owners, MSCPS that don’t install charging stations as standard will be left behind when EVs become more widespread.

Retailers are already seeing longer average customer dwell times in shops near car parks with EV charging facilities, and we can expect retailers and other stakeholders to put pressure on MSCP owners to ensure that the technology is installed so that EV owners are drawn to the commercial offers nearby.

In the longer term, we may see car parks form giant ‘batteries’, using the EVs within as a huge electricity storage resource. It has been estimated by Macquarie University in Australia that EVs are stationary for 95% of the time, and this presents a significant opportunity for car parks housing EVs to become part of the electricity grid, helping to store energy more evenly and removing supply bottlenecks. Trials are already taking place in Denmark to see if this is a feasible prospect – if it is, then we may see MSCPs performing a new and significant social and economic function which will require new thinking in terms of design.

Auto Parking

Autonomous vehicles

Self-parking vehicles present perhaps the greatest potential future disruption to the MSCP model as we currently know it. Autonomous cars will allow for more compact car parks – research by the University of Toronto has calculated that a well-designed car park facility could hold as many as 87% more cars than it would with conventional cars.

The reasons for this are fairly obvious – there will be no need for doors to open, for example, allowing cars to be packed more tightly together, while passenger walkways, lifts, stairs etc., will also be unnecessary (beyond what is needed for service access, and, perhaps, for delivery of bought goods to the vehicle). Fixed painted lines will be done away with, allowing for more flexibility, and ceiling heights will be lower. Rather than fixed islands of cars, we might see a full grid, with outer cars capable of moving aside at command to allow access to and from the inner spaces.

Up to a third of cars clogging the roads in any given town centre at the moment will be looking for parking, and MSCPs themselves are often clogged for the same reason. The use of autonomous vehicles will allow people to be dropped at a convenient location, the vehicle then driving itself to a parking facility until needed again. With advances in digital communications, data supplied to the vehicle about traffic conditions and the remaining capacity of nearby car parks will allow it to ‘make a decision’ about where to park.

This makes possible a move towards suburban or out-of-town car parks and the complete repurposing of town centre car parks – it will make no difference to the user where the vehicle parks itself (within reason). Alternatively, we might see a system where drivers park non-autonomous cars away from the centre and are then transferred by smaller autonomous pods to the centre, thus also removing congestion.

Companies like Jaguar Land Rover, Ford and Tata motors have been trialling autonomous vehicles since November 2015 as part of the three-year UK Autodrive Project – Jaguar Land Rover is currently testing self-driving and self-parking technology at Milton Keynes, for example.

Legal and technical complexities mean that it is unlikely that we will see the widespread use of autonomous vehicles in UK towns and cities for several years, but, with constant improvements in the technology, particularly in car-to-car communications, MSCPs may be set to see a complete overhaul in nature and purpose within a generation.

Partial or complete MSCP repurposing

As mentioned above, a move away from town centre parking would open up the possibility of repurposing existing MSCPs – whether in full or in part. Town and city centre MSCPs are often located on valuable sites with great potential. MSCP owners should be alive to the possibilities presented by their land banks and assets.

In much the same way that we are beginning to see with railway stations and other transport hubs, MSCPs offer an opportunity to create vibrant and attractive community spaces offering a mix of uses and a transformed environment. No longer dull, single-use concrete boxes, the possibilities are many – including offices, retail spaces, micro-homes, community venues, gardens and gyms.

Where parking space continues to be required, we will see the emergence of dynamic and flexible parking structures which respond to the ebb and flow of parking demand – for example, by adapting space not needed at any given time for use by pop-up retail, leisure and F&B or for entertainment, exhibitions or other uses.

Designing and constructing for flexibility has a key role to play here – moveable partitions and ceilings would facilitate quick repurposing in response to changing conditions, allowing for the optimum use of space and, thus, the maximisation of possible revenue streams. This would be of particular use at MSCPs used by venues which are not in constant use, such as sports stadiums, where the car park might be significantly used on only one or two days a week.

To be borne in mind, however, is that EVs, because of their battery sizes, will weigh more, exerting live loads which might cause problems for some MSCPs, particularly in some older structures - in those cases, there will need to be reinforcement or restructuring to adapt to the new vehicles.

Other services

MSCPs will need to offer recharging facilities for EVs, as we have seen, but there is also scope for the provision of other services. Car maintenance / servicing might be one such offer, in much the same way as we already see car washing stations at many car parks. Delivery direct to your car while you continue with your business is another possibility – with retailers liaising with car park operators to enable it.

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What we’re already seeing

Online booking and pre-payment is a well-established feature in many UK towns and cities now. What we are also seeing more of is the use of mobile app technology to (a) find space, and (b) pay. The wider adoption of this technology, along with automatic number plate or QR code recognition, has the potential to allow for the removal of entry and exit barriers, with their attendant queues, as well as the removal of fixed ticket/payment kiosks. This will allow for a smoother and speedier entry and exit and help prevent clogging at ground floor level.

Smart parking

Smart city technology is becoming more prevalent. At its most basic, it involves relaying car park capacity information to electronic information signs throughout the urban area. More sophisticated systems relay real-time parking and traffic information to mobile apps or directly to the car itself. A part of this system is the use of intelligent bay monitoring, with sensors detecting whether a parking space is vacant or occupied at any given time.

As demand rises and falls according to the time and day, or in response to nearby events, dynamic pricing becomes much easier to implement when a constant stream of data on usage is being fed to the central database. This is another way in which MSCP operators can maximise revenue.

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Increased demand for cycle spaces

More and more people are foregoing car journeys in favour of using bicycles, whether for environmental reasons, for fitness or just because they are sick of traffic jams. This has led to an increase in demand for secure cycle parking facilities, and MSCPs are ideally placed to serve this growing need. Electric bikes and scooters are a part of this trend, and charging points will be necessary in the same way that they will be for cars. E-bikes are already growing in popularity, being capable of reaching speeds of over 30mph and possessing a range of over 50 miles. It is estimated that, for a two-wheel commuter travelling 20 miles a day (4,000 miles over the course of a year), the reduction in CO2 emissions amounts to 1,500 kilograms compared to driving.

Designing to future-proof MSCPs

Over the next decade or two, the experience of parking will be redefined, and MSCP operators need to be alive to the challenges and opportunities this transformation will bring about. Those changes are already happening, and MSCP design needs to be responsive to that fact.

Car parks which don’t already cater for electric vehicles will need to be fitted with charging technology if they are not to be left behind (with the resulting impact that would have on businesses in the vicinity reliant upon those parking structures).

Smart parking technology should be part of a wider tech-enabled service which offers payment facilities and parking/traffic information to customers long before they reach the car park.

Some MSCPs are going to be located in the wrong place for continued use for parking, particularly in town/city centres where vehicle access will become more restricted – but that offers great scope for repurposing and turning those spaces into vibrant community hubs.

Other MSCPs should be designed/reconstructed to allow for flexibility of use – modular construction is one key method in which that can be achieved.

Finally, in the longer term, the possible widespread adoption of autonomous vehicles will mean that MSCPs will need replanning and reconstruction to alter how those spaces are used – but this will in turn allow for a more efficient use of those spaces, lower overheads and improved revenue intake.

All of these phenomena will require efficient management and technology systems, but they will first need well-considered and informed design. MSCP operators need to be aware of the fundamental changes that are coming to the industry.

Chapman Taylor – which has expertise in meticulous operational space planning, in the installation of digital technology and in repurposing built environments for a wide mix of uses – is ideally placed to meet the challenges and opportunities that those changes will present.

Adrian Griffiths (BA (Hons) Dip Arch RIBA MA Urban Design FRSA)

Group board director, uk.

Adrian joined Chapman Taylor in 1986 and was promoted to the Group Board in 1998. As an architect and urban design specialist, he is recognised internationally for his expertise in the masterplanning of major complex mixed-use developments which are key drivers in the regeneration of our town and city centres.

Adrian is conscious of the fact that the developments we build today create the societies of tomorrow, recognising the responsibility the profession has in influencing the quality of people’s lives. He regularly speaks at conferences and prepares papers which promote the benefits of mixed-use developments as a sustainable model for the long term. Adrian leads the Concept Design Team in the UK.

Areas of expertise:

Urban design / Masterplanning / Mixed use / Retail / Leisure

Adrian entra a far parte di Chapman Taylor nel 1986 e si unisce al Main Board nel 1998. Come architetto e specialista in progettazione urbanistica, è conosciuto a livello internazionale per la sua esperienza nei masterplan di grandi complessi multi-funzionali, che sono i principali autori nella rigenerazione dei nostri centri urbani.

Adrian è consapevole del fatto che le zone di sviluppo urbano che oggi costruiamo creano le società di domani, riconoscendo la responsabilità che la professione ha nell'influenzare la qualità della vita delle persone. Adrian partecipa abitualmente a conferenze e scrive articoli che promuovono i benefici degli spazi multifunzionali come modello sostenibile a lungo termine. Adrian guida il Concept Design Team nel Regno Unito.

Aree di competenza:

Adrian kam 1986 zu Chapman Taylor und wurde 1998 ins Main Board befördert. Als Architekt und Urban Design-Spezialist ist er international anerkannt für seine Expertise in der Masterplanung von komplexen Mischbebauungsvorhaben, die Schlüsselfaktoren bei der Regeneration unserer Stadt- und Ortszentren sind.

Adrian ist sich der Tatsache bewusst, dass die Bauvorhaben, die wir heute umsetzen, die Gesellschaft von morgen bilden und ist sich der Verantwortung unseres Berufs als Einfluss auf die Lebensqualität der Menschen bewusst. Er spricht auf Konferenzen und schreibt Abhandlungen über die Vorteile von Mischbebauungsvorhaben als langfristig nachhaltiges Modell. Adrian leitet das Konzept-Design-Team in Großbritannien.

Schwerpunkte:

Städtebau / Masterplanung / Mixed-Use / Einzelhandel / Freizeitbauten

A Comprehensive Guide on How to Create a Parking App in 2024

Updated 12 Sep 2023

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The number of motor vehicles on the road in cities is increasing all the time, while parking spaces are becoming increasingly rare. Drivers often waste a lot of time looking for a parking spot.

Fortunately, the modern IT industry can provide a solution answering how to create a parking app according to the following steps:

  • Create a business plan
  • Study the competitors
  • Hire experienced developers
  • Create a functionality list. Launch an MVP
  • Consider a UI/UX of your app.
  • Think about advanced features
  • Keep it updated regularly

Citizens benefit from applications since they save time and nerves. The main purpose of such solutions is to locate and book available parking spaces in the area. They can also provide cashless payments, GPS, and other services.

That’s why we’ve created a comprehensive guide on how to build a parking app. We’re going to discuss parking app features and steps to develop such an app.

Parking App Development: Working Principles

The parking is a lottery for drivers almost every morning of their life: when going early to work, being in another city or just doing some business in their own one. It's not guaranteed that the parking place will always be free from any other automobiles.

That makes a danger for vehicle security. But the solution for this problem is nearby - using a car parking app allows you to book a parking place beforehand.

That's why the need for car parking apps has increased and the "how to make a parking app" question became more essential. Furthermore, a range of their advantages are essential both for vehicle owners and parking businesses. Thus, the drivers may save money by using the app to find the nearest and cheapest parking spot available. For the rental vehicle sector, a car parking app development is a useful tool for saving time and reducing traffic violations, as many of them occur when the driver is looking for a parking spot.

The creation of smart parking apps is also environmentally favorable. Because the motorist spends less time looking for parking, it helps to minimize pollution.

If you want to benefit from all the said asking "how to find parking near me", app development is the best solution. We'll start to talk about it from how it works at the user’s point of view.

6 steps on how a parking app works

How does a parking app work?

  • Step #1. Searching . The person uses GPS to find the automobile or types in the required address.
  • Step #2. Comparing . The app offers a variety of parking options. To locate the right match, the user can sort them by pricing or distance.
  • Step #3. Booking . The driver obtains an access code and reserves the desired parking place.
  • Step #4. Paying . The client can pay beforehand with a credit card or later with cash funds.
  • Step #5. Driving . Driving recommendations to the parking lot are provided by the parking app.
  • Step #6. Parking . The driver pulls into the parking space and stops their vehicle.

The working mechanism seems to be quite easy from the first point of view. Now, let's find out how to bring it into life by developing a car parking solution.

Steps on How to Build a Parking App

Follow these seven steps to develop a parking app:

  • Create a business plan for your parking application.
  • Study the competition (e.g. BestParking).
  • Hire experienced developers to build a parking app.
  • Choose several vital features and launch an MVP.
  • Consider an intuitive design of your app.
  • Consider advanced features to make your parking app unique.
  • Keep it updated regularly.

There are main steps to create parking enforcement solutions. Below we discuss them more precisely.

Build a comprehensive parking app

Cleveroad experts will give you an in-depth consultation as to the creation of a smart city solution

Car Parking App Development Business Plan: Models to Follow

There are plenty of functions that a parking app can have, from online payments to navigation based on GPS. If you want to launch a car parking mobile app development, you need to start with a business idea.

There are three most common ones: navigation, navigation & booking, complete solution. We’ll consider all the details below.

Parking app business plan

Parking applications business models

Solution #1. Navigation

This option is the basic one since it provides users with one primary function — finding a parking spot near the car’s location. Such an application can’t book the free parking spot. However, solution of this type is perfect for an MVP of the parking booking app development to start the business.

Solution #2. Navigation & Booking

This type is more complicated than the first one. It allows users to find and reserve the chosen parking spot. Additionally, the app can navigate the driver to the booked place.

This parking service app tends to provide a flexible payment system. So, the users usually can pay by credit card or in cash. There are also such features as adding extra parking time or navigation back to the parked car.

By the way, this business model is the most widespread among existing parking applications like BestParking.

Solution #3. Full Set of Functionality

Such car parking application development tends to be more expensive compared to the previous ones.

Such applications solve the parking problem completely. They allow users to book the parking spot. Additionally, it’s possible to order door-to-door service. There are valets that can take and park the car.

How does a parking app work? The user needs to pre-book the parking space and choose the time and place to give the car keys to the valet. The valet takes the car, parks it, and returns the vehicle to the owner in the discussed time.

The service is secure since the users can look through the valet’s photo, reviews, and more. Luxe Valet is a perfect example of such a service.

What business model to choose?

Cleveroad will help you to select a model which will be the most beneficial for your parking app!

We'll discuss the parking app examples where the above described business models are successfully implemented. You can accurately analyze them in order to choose and properly implement a business model in your own app for car parking business.

Parking App Development: Popular Examples

To start a car parking location app development, you should study your competitors first. Parking management solutions development requires preparations, so we’ve chosen four popular projects from the US, UK and Europe to review.

1. BestParking

BestParking assists in finding and booking spots at the best price. The service works in many cities across North America, e.g. NYC, San Francisco, Chicago, Boston, and more. Additionally, the platform offers to reserve parking spaces in major American airports like LAX, ORD, and JFK.

The applications have such exciting features as pre-booking. So, the users can reserve a parking spot for a specific date and period of time. BestParking provides the final prices on the map to let users choose.

Available on:

How to build a parking app: BestParking

Parking reservation app development example: BestParking

2. SpotHero

SpotHero is another parking application providing high-quality services. The platform offers to find a perfect spot near your current location. SpotHero cooperates with various lots and garages having parked about 40 million cars for 10+ years.

This application offers to book a parking spot in many big cities across the US and Canada, including NYC, Chicago, Toronto, Boston, and more.

SpotHero also guarantees secure payments with credit cards, Apple Pay, or Google Pay.

3. Parkopedia

Parkopedia is the largest parking service app. It’s possible to book a parking spot in 89 countries and approximately 15,000 cities all over the world. The app allows the user to find a parking spot using the current location of the car or entering the address.

Additionally, Parkopedia works as a navigation system and provides users with the direction to the chosen lot. Users can filter parking spaces by free spots, credit card payments, and more.

How to build a parking app: Parkopedia

Parking spot finder app development example: Parkopedia

Parker is an effective example of how to build a solution for a vehicle parking giving the customers a flawless UX. It is gained thanks to implementation of various smartphone payment alternatives and necessary features.

For example, due to GPS use, Parker offers data for available garage/spot for parking in real-time mode without making users search by themselves, losing a lot of time.

5. Parclick

This service offers parking spaces in more than 250 cities in Europe like Rome, Barcelona, Madrid, Paris, Faro, and so on. Parclick can find parking spots for cars, vans, motorbikes, and more. Additionally, it’s possible to pre-book a space to park for a long time. For instance, you can reserve a place according to your schedule for several hours or days.

Parclick offers a flexible bonus system: there are discounts for monthly subscriptions or a 5% discount if you install the app. The service can satisfy the needs of any client as it allows to find a parking spot by price, distance, car type, and more.

How to develop a parking app: Parclick

Parking garage finder app development example: Parclick

6. Parking Mate UK

Parking Mate solution helps the UK customers quickly find the available car-parking spots throughout the city. The map attached to the main screen assists users to find the most secure parking lots nearby. Furthermore, if there are some specific regulations as to the particular spot, the app can also warn the user about it.

The user occupying a lot, will also be notified by the app when the parking time is over. It will give them an opportunity to take their vehicle on-time for not to pay possible fines.

After you've thoroughly learnt about your biggest competitors in vehicle parking business, it's time to plan your further actions in such a way to overcome them all. And the first step in this planning is to create a proper functionality list for your upcoming solution.

How to Build a Parking App and What Features to Implement?

Public parking finder app development requires a defined set of features. Usually, they are divided into two types according to their complexity — basic and advanced. It’s common to create an MVP (Minimum Viable Product) with some basic functions and, after that, add some advanced and unique features.

Revealed: How to build an MVP and measure the application success .

MVP allows you to launch an app and get some feedback from users. Based on this data, you can decide what features to add.

Basic Features of a Parking App

Parking app basic features

MVP features for an online parking reservation app development

  • GPS tracking

To make the application more easy-to-use, it’s necessary to enable GPS tracking. This technology allows to find the location of the car and determine the distance to the nearest parking lot.

The searching process should be as easy as possible. For instance, the solution should offer to find the nearest spot in one tap after a parking finder app development.

This feature allows reserving a parking spot. The user can find a place that fits the budget and pre-pay it on a daily, weekly, and monthly basis. It allows for avoiding everyday reservations.

  • Price comparison

Parking applications tend to provide an opportunity to compare prices. So, it’s easy for users to find the cheapest place nearby.

Various payment options

Users should have several payment options to feel comfortable and secure. So, such services as PayPal should be integrated.

Lost in features variety?

Apply to us! Cleveroad team will help you create the best-fitting feature list for a parking app!

Advanced Features of a Parking App

Basic features are enough to launch the parking app. However, to gain loyal users and make your application unique, it’s necessary to add some complex functionality. There are some ideas below that you can use during parking finding app development.

Push notifications

One of the most popular features for increasing user engagement is the ability to deliver alerts about discounts, application updates, and more information. Furthermore, consumers should be notified 15 minutes before their parking place expires. Users can stay longer or return to their automobile in a timely manner.

Several cities

An opportunity to choose parking places in other cities is necessary while traveling or business trips.

  • Waiting list

Every driver has a favorite parking lot. However, it can be full. So the user can be notified when a parking spot becomes available.

The application can show the busiest routes in the real-time mode. Based on this data, users can make decisions about their booking.

  • Tag location

This feature allows saving the place where you’ve parked the car. Additionally, the user can share the parking location via social media or messengers.

There are various exciting features to implement during parking spot finding app development. However, it’s always better to start with basic functions and add advanced features gradually.

Parking app advanced features

Advanced features of a parking application

What to Consider Before Parking App Development

Several more aspects should be taken into account before the car parking finder mobile app development.

Team of Mobile App Developers

If you want to create an app, you need skilled and experienced developers. There are two reliable variants — choose between an in-house vs. outsourcing development .

Outsourcing has become popular these days. Outsourcing companies offer affordable prices along with the high quality of the final product.

Having decided to cooperate with a parking app development company, you need to study reviews and previous projects. There are independent platforms like Clutch and GoodFirms with firms’ rates and portfolio.

UI/UX Design

People pay a lot of attention to the application design, so it should be user-friendly and convenient. Users don’t want to spend time trying to understand how the app works. Design can assist in gaining users and their loyalty.

Creating a UI/UX design during the parking lot finder app development can take plenty of time, depending on your requirements and it's complexity.

Tech Stack of the Parking App

The tech stack of your future app is more important than you may think. It’s responsible for the stability and scalability of your parking space locator app development project. Applications can be native, hybrid, or cross-platform. Each of them has certain peculiarities that you need to consider beforehand.

How to choose the best technology stack for mobile app development ? Let's check our article and learn more about choosing a toolkit for your project!

For instance, native apps are the most stable and provide the best user experience. Additionally, such applications offer the high-security level that is vital for parking apps. However, their development requires more time.

Below we’ve listed the approximate tech stack for city parking finder app development.

  • Kotlin for Android
  • Swift for iOS
  • Google Cloud Messaging for Android
  • Apple Push Notification Service for iOS
  • MongoDB or SQL
  • Google Maps
  • Amazon CloudFront

Start building a parking app now

Our team can offer you an efficient tech consultation and accurate project estimation.

Parking App Development with a Skilled Tech Partner

Parking app development requires preparation since there are a lot of factors to pay attention to and features to implement. A competent IT vendor with a profound expertise in the Smart City solutions building may help you a lot. If you require to start such a collaboration, Cleveroad is the perfect choice for this purpose.

Let us tell more about this IT service provider.

Cleveroad is a skilled software development company from Estonia, Central Europe. Since 2011, we've been assisting startups and organizations of all kinds in acquiring cutting-edge technology specializing in a wide variety of IT services and bespoke software solutions. They improve workflow efficiency, address business issues, and aid in the acquisition of competitive advantages.

  • A parking space finder app development considering our experience and knowledge of the latest building technologies
  • An initial project estimate from our Sales Managers
  • A complimentary consultation with one of our BAs or PMs
  • Signing non-disclosure agreements (NDAs).on request
  • A team that can easily adopt to the existing workflow conditions
  • Profound software development expertise in various domains
  • A cutting-edge tech stack to build a modern and competitive app, etc.

We are eager to provide you with all the necessary information as to parking search app development. Our professionals will also help you with a tech stack choice and a feature list creation, selecting those features and tools to implement them which are the most appropriate in the current situation.

The way to a perfect car parking finder app development for your business is quite simple: let's collaborate with us and succeed. We're ready to help you lead your business to a new level.

  • Searching . The user locates the car using GPS or enters the necessary address.
  • Comparing . The app provides several variants of parking spots. The user can filter them by price or distance to find the perfect match.
  • Booking . The driver reserves the selected parking space and gets an access code.
  • Paying . The user can pay by credit card in advance or in cash later.
  • Driving . The parking app offers driving directions to the parking lot.
  • Parking . The driver enters the parking lot and parks the car.
  • Study the competition(e.g. BestParking).

If your business clients ask you "what are the places for parking near me" app development of your own will solve this issue. However, you need to study the competitors before launching such a project. We offer you to pay your attention to the following apps as:

  • Best Parking
  • Parking Mate UK

Here is the final list of parking app features which includes both MVP and advanced functionality:

  • Real-time search
  • Payments (e.g. PayPal)
  • Personalized push notifications
  • Support for multiple cities

Author avatar...

Evgeniy Altynpara is a CTO and member of the Forbes Councils’ community of tech professionals. He is an expert in software development and technological entrepreneurship and has 10+years of experience in digital transformation consulting in Healthcare, FinTech, Supply Chain and Logistics

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Nov 09, 2023

Nov 08, 2023

Top 5 reasons workplaces should implement a parking management system

People don’t just introduce a parking management system because they love parking. They do it because introducing parking management achieves overarching business aims, from aligning the car park with a flexible workplace, increasing employee happiness and wellbeing, to optimising unused space, automating administrative tasks and supporting sustainability goals.

Sounds lofty?

Here’s how parking management fits into your larger business goals.

1. Align your car park with your flexible workplace

The broadening definition and growth of flexible working are changing the game. As a result, there has been a noticeable shift from a traditional 9 a.m. to 5 p.m. model to a more malleable working structure.

Employees now have the freedom to decide on working arrangements that suit their daily lives.

However, to ensure flexible working transitions seamlessly into your workplace, it is crucial to consider internal structures that may be inhibiting this move to flexible working. One that is often overlooked is your car park management system.

While employee parking may not be at the top of your to-do list, the time-consuming process of finding a park is entangled with something nobody missed during lockdown: the daily commute.

The priority for commuters is securing parking that is both accessible and affordable.

Over time the daily frustration of time wasted in searching for a park can cause undue stress and lead to employees arriving late, in a bad mood or having to pay high parking costs offsite. Not only can the headache from the trouble of finding a park make or break someone’s day, but it can also have a lasting effect on their overall job satisfaction, productivity and, ultimately, workplace morale.

Since businesses have been implementing a flexible working structure, there is an added frustration for employees arriving at work to see allocated parks sitting empty while they have been forced to park off-site or use alternative transportation. It is clear that each area of the business needs to follow a flexible structure to ensure the transition to flexible working is effective and seamless.

Car park management software, like Parkable, is the easiest way to manage your employee and tenant parking. Our flexible, intuitive platform and app allow businesses to distribute car spots amongst employees. It operates similarly to bookable hot desks; bookable parks are a way to add freedom and autonomy to the office experience.

By reserving a park in advance, employees and tenants can plan their commute knowing they have a parking space ready for them. Employees with an allocated parking spot also can share it with other employees when they are out of the office.

This is exactly what the National Restaurant Association found. With around 100 employees but under 50 parking spots, the company at its DC location didn’t have an efficient way to manage and fairly distribute their parking spots for daily use. The challenge only grew when flexible work policies were put in place.

“We wanted to make the return to the office as easy and seamless for staff as possible, and that starts with the morning commute. With Parkable, we’re able to offer reservable on-site parking to all of our DC team members, which reduces the stress of coming into the office,” explained Sarah Kane, the Project Lead of the National Restaurant Association.

With Parkable’s software, employers and property managers can optimise their unused space better. The average commercial car park is 20-35% empty at any given time due to sick days, meetings or annual leave. Our software lets you see which car parks are in use and facilitates park sharing to allow more employees and tenants to park at the office. There will no longer be a need to race for first in, first served parking, no resentment for parks sitting empty and no added stress.

2. Increase employee happiness and provide better employee experiences

Princeton University found that of all the activities, commuting to and from work consistently ranked as two of the most negative experiences of the day. The time, money and stress saved by parking management software like Parkable could do wonders for your employee engagement, performance and retention.

After a year of working from home, Colorado Housing and Finance Authority (CHFA), an organisation designed to address housing issues in the state, and its 200 employees were ready to return to the office in various capacities. It was at this point that the company’s management pivoted. Parking allocations for its 115 parking spots were removed, increasing parking equity across the organisation. And to facilitate this change and to allow for a seamless daily commute for any of the organisation’s team members that were hoping to work from the office, CHFA implemented Parkable.

“We wanted to change the way we organized staff parking to make it more equitable for the whole team, and needed a technology solution to make that transition easy,” said Brian Miller, CHFA Asset Management Director. “I’m very pleased that we found Parkable.”

Ultimately, unhappy employees and high turnover are not what companies want. While companies can’t influence much of their employees’ commute, a big part of the problem is parking – and employee parking is mainly within a company’s control. A parking management system can help ease some employees’ stress.

With Parkable, CHFA could empower its employees to reserve parking a day in advance and check parking spot availability in real time. On top of this, with Parkable data provided to CHFA through its admin panel, it was able to learn that its staff was not using its outdoor parking spots. With this, CHFA could sublet over 30 parking spots to generate extra real-estate revenue.

“With Parkable, parking has been made easy for our staff, and spaces are being used efficiently,” adds Miller.

3. Optimise your parking space

Before COVID, companies typically fork out about 12% of their real estate spend on car park space. Within the CBD in Australia’s biggest cities, Sydney and Melbourne, the annual spend reaches AU$6,500 per park per year, and in London, that figure settles around the 3,500 pounds per park mark.

Now, as the work from home, or just WFH, shift spans beyond COVID times, businesses are seeing this expense growing increasingly inefficient, with employees spending less time in the office than ever before. On top of this, companies are now competing with one another, offering flexible work schedules and structures to lure talent amid a persisting labour shortage seen across many economies. All of this suggests that the WFH shift appears here to stay.

With that, the real estate spend that companies budget for can also evolve in its usage to reflect the post-COVID workforce.

Now, this isn’t to say that employee parking isn’t a worthwhile expense because, as we’ve seen, good parking does wonders to employee satisfaction and engagement. However, a question begs: is that with the number of empty car spots jumping over 20% to 57% post-COVID – is there a more efficient way to use all that utilised space.

In short, yes! Car park management software, such as Parkable, can optimise car park space. So instead of spare spots sitting idle and unutilised, these spots can be booked through and shared among the team for those without a designated park for everyone to have a fair chance to park onsite. Now, if we think about this effect in number terms, if a company leases 100 employee parking spots, 33 of which sit empty during the year, that’s over $100,000 spent on a vacant asset.

For example, let’s take the American Association of Colleges of Nursing (AACN). Before the pandemic, staff parking was only reserved and allocated to several senior employees. However, when the company’s team started returning to the office, it opened this up for the entire team to try and improve employee experience and satisfaction. The only problem was that AACN wanted to provide clarity to its employees on whether they would be able to reserve a spot that day.

With Parkable, it was able to not only enable equitable parking across the organisation, but employees were also able to get the reassurance they needed that they would have a spot when they arrived at the office. On top of this, with Parkable, AACN employees can pay for their parking spots only when they need them (daily, weekly or monthly) and also allow the company to recover lease costs.

“We have already had positive feedback from employees on how easy it is to use Parkable,” explains Heather Shelford, Director of Finance & Administration at AACN. “Staff are happy that they can pay for individual days rather than an entire month. This allows us to offer parking to more individuals.”

4. Reduce administrative load

There is no doubt that time is money. From employees having to sign in at their workplace car park to tedious calculations done by the finance team on car park space deductions, these tedious tasks distract admin teams from focusing on more valuable tasks. With parking management software like Parkable, companies can reduce the administrative load for facility managers. Each task becomes automated, integrating seamlessly into the Parkable app.

Let’s take Automatic number plate recognition , more commonly known as licence plate recognition, as an example. With Parkable’s ANPR functionality, your company can grant secure and easy entry and exit to any of the vehicles entering your parking lot with direct access to control gates. You can also pre-set an approved list of vehicles permitted entry upon driving up to the barrier arm. On top of this, our platform automatically keeps all data and records of the vehicles utilising your space and for how long. The good news is if you already have existing hardware infrastructure, you can still integrate Parkable! Our platform’s ANPR software integrates with all access barriers and RTSP-compatible IP cameras.

TAB saved up to 670 hours of administrative time each year by automating its processes with car park management software . Companies that would otherwise spend hours calculating revenue from hourly or daily rates are not supported by an app like Parkable that can do the work for them.

Now, let’s take Xero in the United Kingdom. Xero recently moved to a new purpose-built office and shifted to a hybrid working schedule. While in their last workspace, the company found parking space to be limited (painstakingly manually managed), by implementing Parkable, they have managed to improve staff satisfaction and carpark space management and access solutions. Xero UK was also able to monitor who was using the carpark space and when it was being used. Xero UK and Parkable align on their #human values aspects, making the pairing so fitting.

“At Xero, we’re really passionate about providing our employees with user-friendly facilities. We see technology like Parkable as playing a big role - and I love the way that Parkable’s features help us demonstrate our #human value by providing fair and available parking for our employees. “I’ve also loved working with the team at Parkable. They’ve provided an excellent onboarding experience and made change management really easy for us to ensure this is a success,” says Ricky Martin, the Xero Workplace Experience Manager (UK & EMEA).

With an app like Parkable, admin teams can access the admin panel where they can perform a range of tasks such as inviting employees to the car park, assigning parking privileges, tracking parking occupancy and managing reported issues directly.

5. Support sustainability aims

A whopping 30-40% of urban congestion is caused by drivers searching for a place to park, a problem caused by the lack of visibility of parking availability. In fact, a single person can eliminate 227 kilograms of greenhouse gases yearly simply by ending the search for a park.

With the Parkable app, we can help you implement and streamline initiatives that work toward achieving sustainability targets.

For example, employees can book a parking spot when needed and then drive straight into their assigned spot for the day. An employee can also view car park availability, both in real-time and for the upcoming week. If there isn’t a park available, employees know this in advance and can organise alternative transport, rather than driving into the office blindly and then circling for a park nearby.

Plus, parking spots that are allocated to specific employees can easily be shared amongst your team, so more people can drive directly into the office rather than leaving space sitting empty.

Parkable can also be used to incentivise carpooling by putting different prices on “one person,” and “carpooling only” parks. If you have EV chargers available for employees or visitors, you can use Parkable’s EV charger management software to manage, share and monetise this infrastructure.

Parkable provides a simple solution for EV drivers to find EV charging stations and to start and pay for their EV charging stations. All they have to do is scan a QR code and follow a few prompts on the app, then plug in the charger, and they’re good to go! We’ll take care of the rest, tracking the time and cost so that EV drivers can keep an eye on their spending wherever they go.

“We started using Parkable to improve the staff experience of using the car park and make their lives easier. We want to deliver the best experience for our staff and this includes adapting to the latest technology that provides both ease of use and efficiency,” writes Ross Turner, facilities manager of KPMG.

To find out why startups and multinationals alike around the world all love Parkable, download our app or book a demo to learn more today!

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Parkable enables easy sharing and booking of Waverley College’s staff parks. Using the app, the staff can share their allocated car park with colleagues when they’re on leave, and other members of staff can easily book parking.

Parkable's parking management software allows TSG to easily share 150 parking spots among 250 staff.

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Airport car parking future

Where to Now? — The Future of Airport Car Parking

  • Volume XXI, Issue 44
  • Executive Insights
  • July 11, 2019

Mark Streeting

Key takeaways

In the short term (to 2025), car park utilisation and growth will reflect the extent to which TNCs and on-demand services drive further growth in PUDO.

In the medium to long term (2025 to 2040), strong growth in EVs is expected. While this will have no implications for the demand for car parking per se, it may create opportunities for airports to introduce and monetise fast-charging stations.

It will be post-2040 before the proliferation of connected and autonomous vehicles (CAVs) drives a significant reduction in the demand for “traditional” car parking given that it is expected that only 50% of the fleet will be level 4 or 5 by 2040.

Airports have historically developed successful ground transport businesses anchored around highly profitable parking assets. Sustained revenue growth has been tied to maximising passenger growth potential that translated with a high degree of predictability into higher parking volumes.

However, the landscape is changing. Parking growth rates at many major global airports are slowing and the direct correlation with passenger growth is weaker than that observed historically.

The consumer is also changing, becoming more tech savvy, and demanding increased choice.

Pick-up and drop-off (PUDO) in various forms is increasing in importance at airports. Across cities, the number of options for car and ride sharing and the emergence of other “new mobility” options such as shared demand responsive services is growing. Digital technology is allowing rapid innovation in business models.

Ride share has been accepted by the market and continues to evolve, including the recent introduction of “ride pooling” by transport network companies (TNCs) and increasing competition via new entrants in many markets. The scale of the investment and range of players participating in the development of new mobility are resulting in the rapid acceleration of the technology into market applications. With the rise of electric vehicles (EVs), connected and autonomous vehicles (CAVs), aerial mobility, and the increasing adoption of mobility as a service (MaaS), more technological and business disruption is on the horizon.

These trends bring uncertainty for airport operators and investors as they consider their strategies and infrastructure investment decisions.

Airport ground access over the next 20 years

Ground transport is already being disrupted. In the short term, the most rapid innovation will relate to new services rather than new vehicle classes.

Airports around the world have been responding to current disruptors. TNCs offering shared ride services are commonplace at airports globally and the usage of multi-occupancy or pooled rides is increasing (e.g. 30% of Uber rides from Los Angeles International Airport are now pooled rides).

Future disruptors are well within the typical investment time frame of car parking infrastructure, with CAVs likely to cause the greatest long-term impact. Level 4 1 and 5 2 CAVs will support fleet services to airports and “self-valet” parking. Estimates of CAV (levels 4 and 5) penetration are sensitive to a number of assumptions including fleet turnover, customer acceptance, government policy and continued advances in technology. It is likely that a significant proportion of vehicle fleets in first world countries will be level 4 or 5 by 2040.

Disruption timeframe

Key infrastructure implications

Our customer research (based on passengers using a major international airport) suggests that, with some notable exceptions, the vast majority of airport passengers will continue to want to drive or be driven to and from airports for the foreseeable future (i.e. park or be dropped off). However, fewer and fewer will want to store their cars at the airport. In the medium term (i.e. to 2030), penetration of PUDO (particularly pooled rides offered by TNCs and shared demand responsive services) is expected to increase.

The impact for each airport will depend on the geographic distribution of passengers in the airport’s catchment. Passengers living closer to the airport and those in densely packed urban locations (with several mobility choices) will rely less on parking than those farther away. Trips made by those who have traditionally parked from a distance of up to 20 kilometres from the airport are most susceptible to switching to TNCs and shared demand responsive services.

Beyond c. 2030, the progressive impact of CAVs will further reduce the growth in at-terminal parking demand. Specifically, CAVs (individual and fleet owned) are likely to drive further growth in PUDO. CAVs owned by individuals are likely to return “home” rather than park at the airport, while fleet-owned CAVs will secure another trip at the airport in the same way taxis and TNCs do today.

In aggregate, we see a declining demand for traditional self-park parking bays.

Ground access real estate

Space is likely to become even more constrained at the kerb and in the forecourt, as demand for drop-off, ride sharing and on-demand services grows. More vehicles (albeit with slightly higher occupancy) will be looking to access already constrained terminal frontages. Airports will need to consider the quantum of kerbside and non-kerbside space offered to enable an efficient PUDO process. Specifically, it will be necessary to future-proof the design of the next generation of terminal access areas and parking infrastructure to allow for the transition from a parking model to a drop-off model.

Current holding areas are likely to be increasingly used by CAVs rather than traditional taxi and limo services, and could also be redesigned to optimise for space.

Car park utilisation

In the short term as the popularity of car and ride sharing and on-demand services grows, parking demand growth is expected to slow.

Long term, CAVs will have the strongest disruptive impact on car parks once there is widespread level 4 automation (i.e. from the late 2030s). At that point, these vehicles will no longer need traditionally laid-out parking garages. At full level 5 penetration, it is estimated that up to 90% of parking spaces will be eliminated due to CAVs. This is unlikely for several decades, with a scenario of c. 15% penetration by c. 2040 considered likely.

When level 4 and 5 CAVs begin to dominate the vehicle fleet (i.e. post-2040), fleet operators will want to ensure that vehicles are conveniently located in close proximity to passengers requiring them. This will present an important opportunity for airports to provide short-term storage (during peak times and when the vehicles are not in use) together with ancillary services such as facilities for vehicle cleaning, charging and maintenance.

Car park configuration

Parking facilities are likely to evolve into mobility hubs, in which the parking structure becomes a transit stop and provides multiple options for passengers such as parking, last mile bike sharing or rental, and easy access to public transport.

The growing uptake of EVs in the next five to 10 years will require the need for charging stations. CAVs will enable applications of driverless functions such as valet parking. This, combined with the growing popularity of robotic parking valets and stacking, could be a way to improve user experience, optimise space in areas of high demand and avoid building new capacity.

Going forward it will be important to build flexibility into the design of garages so they will be multi-purposed to support high-volume PUDO in outer years, keeping in mind not to design/overengineer dedicated parking garages based on current longer-term storage requirements.

The outlook for airport car parking assets

Our research indicates that the outlook for car parking assets at major airports is likely to be characterised by three distinct periods.

  • In the short term (to 2025), car park utilisation and growth will reflect the extent to which TNCs and on-demand services drive further growth in PUDO.  
  • In the medium to long term (2025 to 2040), strong growth in EVs is expected. While this will have no implications for the demand for car parking per se, it may create opportunities for airports to introduce and monetise fast-charging stations.  
  • It will be post-2040 before the proliferation of CAVs drives a significant reduction in the demand for “traditional” car parking given that it is expected that only 50% of the fleet will be level 4 or 5 by 2040.

While CAVs will cause the loss of revenue from individual self-parkers, CAVs will provide opportunities to monetise existing parking assets in different ways, such as CAV storage (although requirements will be significantly different than today) and facilities for cleaning and maintenance of CAVs.

Endnotes: 1 Level 4 or “high automation” ― the car can operate without human input or oversight but only under select conditions defined by factors such as road type or geographic area. 2 Level 5 or “full automation” ― the driverless car can operate on any road and in any conditions a human driver could negotiate.

Related Practice

Related insights, distribution, agencies & tourism, post-covid-19 transit ridership recovery: is there a role for fare discounting, 2023 enterprise digital impact study, mergers & acquisitions, the integration triangle - understanding the critical linkages that make (or break) value…, sustainability, fuelling the future of aviation: making sustainable aviation fuel a reality, industrials, powering up the us battery supply chain, travel, transport & logistics, sunshine ahead for the uk holiday market with a positive outlook for 2023.

car park business model

Financing Parking

Forecasting demand & financing new parking infrastructure , financing facilities.

A financial viability assessment helps inform the selection of the most appropriate ‘financial model’ to take new car park scheme(s) forward.  There are several different types of model that can be developed to procure and operate car parks and from a ‘private finance’ (or ‘PPP’ aspect), the following models are typical:

  • Build Operate Transfer (BOT): a contract with a private sector contractor to design, build and operate a public facility (such as a car park) for a defined period, after which the facility is handed back to the public sector.  The facility is financed by the public sector and remains in public ownership throughout the contract.  The key drivers under this model are the transfer of operating risk as well the transfer of design and construction risk.  This model is particularly suited to projects that have a significant operating element such as a public car park.
  • Design Build Finance Operate (DBFO): a contract with a private party to design, build, operate and finance a facility for a defined period (after which the facility reverts to the public sector).  The facility is owned by the private sector for the contract period and the key drivers are the use of private finance and the transfer of design, construction and operating risk.  Again, this is suited to a project that involves a significant operating element and is particularly suited to transport projects such as roads, car parks, etc.
  • Concession: similar to DBFO except the private sector recovers costs from user charges (or parking charges).  Again, private finance is used whilst design, construction and operating risks are transferred.  This model is suited to projects where user charging is a key feature, such as a public car park.

In addition to the above, alternative delivery models include service contracts where the asset remains in public ownership and the contract is typically short term (around 1 to 3 years in duration).  The capital investment comes from the public sector and the contract covers a service fee paid by the public sector to the private sector for specific services, such as the operation of a car park.  Operating and maintenance responsibilities are shared by the public and private sectors whilst commercial risk remains with the public sector.

Management contracts can typically last for 3 to 8 years and refer to models where the private sector manages the operation of a public service and received fees paid directly by the public sector.  In this model, operating and maintenance are the responsibilities of the private sector.

Another model is that of a lease contract (lasting between 5 and 10 years) whereby the private sector manages, operates, repairs and/or maintains a public service to specified standards.  Fees are charges to users and the service provider pays the public sector authority rent for use of the facility.  Unlike the two other types of contract described above, this model features the transfer of commercial risk to the private sector.

Forecasting Demand

We can undertake modelling of demand within the context of competing providers or options to identify whether the parking is adequate for the peak days just before and immediately after Christmas and what the annual cost may be to provide this level of capacity across the whole year. It may be that an optimal and more cost-effective solution for the town relies not on providing more permanent capacity but using temporary solutions to expand peak period capacity when required. This type of strategy is highly suitable for seaside destinations that may incorporate use of temporary overspill parking sites during summer months, but also applicable for many situations where there are intermittent peak demands. We have used a number of tools to identify the potential cost of providing for the peak and helped our clients and stakeholders re-scope these peak demand problems in a more cost-effective way.

Understanding the breadth of car park management

Managing a car park takes a lot of time and effort. It’s an important capital asset for a business and requires ongoing attention and nurturing to deliver on its potential.

Car park with a one-way arrow on the ground

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With many moving parts and issues to consider, having the right help and support can make managing a parking site significantly easier.

You might assume that you need to enlist multiple partners to help your parking flourish. However, the parking industry has evolved over the years, and businesses with one specialised service have diversified and given way to larger suites of services that bring everything a business needs to manage their parking and improve their customer service under one roof.

This means that the systems in place have become multipurpose, in this blog we’re explaining some of the benefits of utilising them.

Improve site usage

At their core, car park management systems are designed to make life in a car park easier.

This can be accomplished in several ways depending on what a car park needs. You might think that for car park management companies this is all achieved through enforcement, but that isn’t necessarily the case.

ANPR helps track users on a site and enforce rules, it also improves the throughput of a car park and the flow of traffic. It also enables other services, like pre-booking , which allows a business to entice more visitors to a site to generate new customers.

There are other changes to a site that can have a huge impact too, tweaking a layout can make getting on and off a site more efficient, reducing congestion and improving accessibility. This all helps to make a site safer and easier to use which is great if you are aiming at your site getting Park Mark status.

The areas that need improvement will differ from one site to the next, and many car parks will require a mixture of services to achieve the right results. The parking industry has had to change with companies now offering an extensive range of services in one place. This makes it easier for businesses to find solutions to manage their parking estate, without managing multiple suppliers.

Parkingeye

Better user experience

One supplier can now stamp out poor parking behaviours on your site while helping you to provide new services such as auto-pay, digital permits, or more modern, contactless, payment options to boost revenues and payment compliance.

This all adds to a greatly improved user experience.

By making payments on your site more convenient, and improving the flow of traffic, you’re actively taking steps to reduce the frustrations many visitors to a car park have. The benefit to this is you reduce the complaints and daily problems that the staff on-site have to deal with, whilst creating a more positive brand experience to boot!

Lift revenues

It’s easy to think that parking management companies boost revenues purely through providing additional payment options on your site. As we’ve mentioned, the services companies provide are multi-faceted and many of them can have a direct impact on your bottom line.

Pre-booking draws users looking for a parking space to your site, however, if they then convert into customers for your business that’s two instances of revenue improving.

Making it easier for motorists to pay and making it so more motorists can use a car park can see huge lifts to your revenues, both in the car park and for your business. The changes made on your site all work hand in hand to make your car park a more effective way of generating revenue.

We’ve seen sites introduce new solutions and turn their unrealised potential into £10k+ in additional parking revenues!

Boost efficiency

Managing a car park is time-consuming, facilities teams are often stretched, with multiple responsibilities and tasks to complete throughout the day. Parking management systems help make their lives easier through automation, freeing up time and easing administrative headaches.

Doing this makes a car park work more efficiently but has an added benefit of giving those facilities teams the time and bandwidth to support an organisation in other ways.

For example, you might have attendants in a car park, stretched to breaking point dealing with problematic outdated barriers, payment machines, space abuse and congestion. These common problems give them little time to help visitors who need additional help and support or deal with other issues across a site.

Parking management can automate barriers, provide additional payment options, reduce congestion, and drive down abuse. Removing those issues suddenly gives your internal teams that extra time they needed to provide ongoing support to those who need it.

Parkingeye

Drive down abuse

Poor parking behaviours can be detrimental to any car park and the businesses attached to it. Unauthorised use restricts access and prevents potential customers from making use of services, often causing parking to spill into the surrounding area, creating issues for residents, other businesses and traffic congestion. This all combines to damage the perception of a brand.

Effective parking management systems don’t just drive down the abuse on a site. They streamline the flow of traffic through it. This increased throughput means more customers, greater footfall, reduced community tensions, and higher revenue, while still providing an efficient parking experience.

Provide insight

Utilising parking management systems, especially those driven by ANPR cameras, can go much further than providing initial improvements to a site.

The data gained from a car park can provide a level of performance analysis and behavioural insight that can transform the way you look at your car park and inform future planning and investment.

It’s vital that you understand your customers and how your site is being used. This information comes in several forms. Revenue data lets you know which payment channels are popular and if it is worthwhile adding additional options. Visitor and capacity data help you see peaks and troughs in activity – this can be a great indication of when to adjust staffing levels to deal with more customers. Fuel analysis enables you to track the vehicles using your site based on their fuel type. With more electric vehicles on the roads, this lets you see how many park on your site and identify the best time to invest in additional infrastructure to support greener motoring. And that’s only a flavour of what’s possible.

Parkingeye alone capture over 4m data points a day – you’d be surprised at what it can tell you.

More to parking management than meets the eye

There’s a wealth of additional supportive services that you might not know fall under the remit of parking management companies.

Lining, lighting, groundworks, general maintenance, landscaping, even helping with building regulations and asbestos reporting, these can all be accessed through parking management companies, either directly or via their selected partners.

Many companies will have a network of partners in place, meaning you can access everything your site needs in one place, without the admin headache of finding multiple service providers.

Parkingeye

How can we help you transform your parking?

The services you offer to visitors can vary and improve the performance of a site in several ways. However, those services are always going to be much more effective when they work together.

A single supplier – particularly one where products are interoperable – can work with you to find the solutions that will have the biggest impact on your site, not just in terms of combating abuse but also in improving the efficiency of your day-to-day operations.

Finding a parking management supplier who’s in a position to offer everything in one place can reduce admin for your team, boost performance on your site, provide a holistic data picture and create a parking experience that has a more positive impact on your visitors.

If you would like to find out more about our services, please head over to our  car park management  page for more information, and get in touch with us today!

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ProfitableVenture

Are Parking Lot Businesses Profitable? [Business Model]

By: Author Tony Martins Ajaero

Home » Business ideas » Real Estate Industry » Parking Lot

With the rising number of personal vehicles roaming the streets, starting up a parking lot business in the United States can be quite profitable.

Parking has a significant impact on the growth of cities. The availability and quality of parking options affect the way businesses and individuals choose their location and where promoters build new real estate projects. According to reports, there are over US $10 billion in revenue earned each year from parking lot operations .

Also there are over 10,000 parking lot businesses in the USA that employ close to 160,000 people. The top three companies in this industry control a large share of the total market, earning 37.6 percent of the total industry revenue each year.

Small operators make up the remaining 62.4 percent of the industry and mostly cater to the local market demand for parking.

How Do Parking Lot Businesses Make Money?

Most parking lots in the United States generate revenue by filling up the empty spaces with cars that pay an hourly rate or flat rate for the parking. Parking lots are believed to be more profitable during peak traffic in larger cities. For instance, many lots leverage the number of drivers in town during sports games.

For a parking lot company that offers parking lot management services, they are paid a monthly fee that is based on the revenue produced by the parking lots they manage for other owners. Have it in mind that the price charged by parking lots in the United States tend to depend on the demand for parking and the nearby competitive prices.

How Much Money Do Parking Lots Make?

In rural areas, $1 per hour is quite acceptable. While in major metropolitan areas that are very congested, with extraordinarily high real estate prices, such as New York City , it is easy to charge up to $15 for fifteen minutes ($60 per hour).

One small lot with 20 spaces that earns, on average, $10 per space, per day will have $200 per day in gross revenue and earn $73,000 in gross revenue per year. Also, if the lot is outdoors and 4,000 square feet at $0.50 per square foot per month rent, the annual rent will be $24,000.

Wages paid at minimum wage level for parking lot attendants will be about $20,800 per year, leaving about $28,200 in gross profit before tax from a single, small parking lot. Note that larger parking lots can have hundreds of parking spaces, which is a multiplication of these basic profit estimates.

Meanwhile, the initial start-up costs will more or less include the rental or purchase of the lot/garage, purchase or lease of equipment, such as transaction machines, lift gates, and security cameras. Have it in mind that garages are more expensive, and costs tend to be much higher for multilevel garages equipped with elevators.

In some small cities in the United States, it is possible to start a single small outdoor lot for less than $10,000 if the land will be leased. However, an indoor garage can cost hundreds of thousands of dollars and upwards to millions depending on its size and location.

Parking lots are relatively low-maintenance businesses but can be very profitable when managed very well. The good portion of work that goes into maintaining a parking lot involves repainting lines, replacing signage, and paying for lighting (and possibly heat) if it is a garage.

What is the Business Model of Parking Lots

One of the most important aspects of running a parking lot is figuring out how to best monetize your new business venture. Most parking lots in the United States generate revenue by filling up the empty spaces with cars that pay an hourly rate or flat rate for the parking.

There are three ways you can go about this problem: 1) a self-service ticketing machine, 2) pay at the building, and 3) having a manned parking booth.

1. Self-Service Ticketing Machine Model

One of the most modern methods of collecting money in a parking lot is to have an automated ticket machine where people pay for parking.

Note that this model can work in many ways. The first option is to have the people pull into the lot and park, without paying; then, upon leaving, they reach a machine where they have to pay a set parking fee in order for the gate to open and allow them to pull out of the lot.

Also, another option is to have machines located within or near the lot where, immediately after parking, the customer goes to the machine and pays for parking. Note that these machines can be set to charge a certain amount per hour or a set rate.

These machines can also be set to produce a ticket that the customer is expected to put on their dashboard so it is visible, or parking spaces can be numbered and the computer can simply track which spaces are paid for and which are not.

This automated machine that will more or less look like an ATM machine won’t require a human to operate it, so no payroll and the onus is on the customer to do the work.

2. Pay at the Building Model

In United States, using this model that lets customers pay at the parking lot building can have benefits. But it only works if you own and run the lot as well as some attraction right nearby. Attractions like zoos, aquariums, and theatres where people are expected to pay their parking fee at the booth.

This can be on the “honour system”, where you trust people to say how many cars their group arrived in and then pay the fee.

In some situations, the car is given a parking ticket by a human or machine when they enter, and they must take the ticket to a ticket booth near the building, pay the parking fee, and have it validated, then show the validated parking ticket to exit the lot.

The advantage of this model is that you can have the same staff selling event tickets and collecting parking fees, minimizing staff.

3. Manned Parking Booth Model

This third model involves having a fully manned parking attendant booth located inside or at the entrance or exit of your parking lot, and has an employee who collects payments. Note that having one or two employees right onsite whenever the lot is open can offer a variety of benefits.

First, it provides one layer of security and deterrence. In addition, it provides customers a place to go with questions. Third, it ensures that payment collection is easy and guaranteed. However, if you choose to leverage this model, there are few tips to consider:

  • You can have customers pay as they enter the lot, which is ideal if you charge a set parking rate. Additionally, you won’t have to worry about cars left in the lot when it closes because they are free to leave any time.
  • You can have customers pay as they leave. Also this can be a set rate (but if you are doing a set rate, have them pay as they enter is really better). Or, it can be a variable rate depending upon how long they parked. But it entails that a person or machine will have to provide a ticket on entry. Indeed you may find it easier to simply charge a flat rate which cuts the work in half, really.
  • Remember that providing shelter for your parking attendants is paramount, so get a parking attendant booth. Aside that fact that it offers your employees a place to stay out of the weather, but it also gives them a place to safely store the money they take in, and it provides visibility so that customers know where to go to pay.

4. Online Payment Model

This is another model option that is beginning to make its way into the parking world – paying by Smartphone app. Note that some local municipalities in high traffic areas have started letting people pay for numbered spaces right online using their cell phone.

Indeed, it is newer technology, and has many of the same positive and negatives of a ticket machine that lets you pay by space, but if you enjoy trying out beta technology, it is a business model you may want to look into. If you go this route, consider still having a live person on site to help those who are struggling to pay.

In the United States, the parking lot business became more profitable through economies of scale. Have it in mind that owning more parking lots that use the same back office and support services is the key to growth and increasing profits. Also, coupled with management of parking services, the business can expand to offer other support services such as energy monitoring, facilities engineering, HVAC, janitorial, maintenance, and landscaping.

Related Posts:

  • How to Start a Parking Lot Business
  • How to Buy Parking Lots for your Parking Lot Business
  • How Much Can You Make Owning a Parking Lot?
  • How Much Does It Cost to Build a Parking Lot?
  • Parking Lot Business Plan [Sample Template]
  • How Much Does It Cost to Pave a Parking Lot?
  • How Much Does It Cost to Rent a Parking Lot for an Event?

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  1. Car Park Business 10-Year 3 Statement Financial Projection Model

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  2. Car Park Business 10-Year 3 Statement Financial Projection Model

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  3. Car Park Business 10-Year 3 Statement Financial Projection Model

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  4. Business model|PARK24 CO.,LTD

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  5. Car Park Business 10-Year 3 Statement Financial Projection Model

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  6. Start Up Car Park Excel Model and Valuation Template

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  1. PDF The future of parking

    US PARKING market is relatively stable and consolidated, generating roughly US$30 billion in gross parking revenue annually.1 A wide range of players are involved—most funda-mentally, parking operators that plan and manage facilities while providing necessary staf and technology.

  2. Car Park Business Financial Model

    Car Park Business Excel Financial Projection Model User-friendly 3 statement 10 year rolling financial projection Excel model for a car parking business with different locations and parking/service options DOWNLOAD DETAILS: Excel Models Populated & Unpopulated €‎69.00 Add to Cart

  3. How to Start a Parking Lot Business

    Home Business Ideas Parking Lot Business Last Updated: January 19, 2024 by the TRUiC Team How to Start a Parking Lot Business Parking lots are located in places where street parking is limited and there is plenty of automobile traffic. Parking may be offered in exterior open lots or in interior secured garages.

  4. The Future of Parking: Top 3 Trends That Are Shaping Car Parking

    Parking Services The Future of Parking: Top 3 Trends That Are Shaping Car Parking Operations October 1, 2022 Connected, digitized, and sustainable—advanced technologies are rapidly reforming the future of parking. As automated payment systems and self-driving vehicles become the norm, we look at a new age of car parking operations.

  5. Car Park Business 10-Year 3 Statement Financial Projection Model

    Highly versatile and user-friendly Excel model for the preparation a of 10-year rolling 3 statement (Income Statement, Balance Sheet, and Cash flow Statement) financial projection with a monthly timeline for a startup or existing car park / parking lot business generating revenue by providing short-term parking facilities, monthly parking member...

  6. How Car Park Operators Are Increasing Earnings ...

    12th September 2022 Car park operators could be missing out on millions of pounds of revenue, simply because most car parks are half-empty for a large percentage of the time. Revenue management techniques could help to ensure that you are making the most of your car park's earning power.

  7. What's driving the demand for car parks

    Car parks are an asset in demand and just like conventional parking tickets, they don't come cheap, typically selling at multiples of around 15 times EBITDA. Perhaps the demand within the sector is best encapsulated by the sale of Q-Park to KKR Infrastructure and EDF Invest, which reportedly generated interest from 30 bidders in the first ...

  8. Car Parking Financial Model Templates

    This is our selection of financial model templates for business models related to Vehicle Parking services, spaces, and others. Price Reviews Downloads Publication Date Last Updated by Ignacio Huarte Property Flipping Financial Model The Property Flipping Financial Model forecasts the financial viability of… Starting at: $75.00 by Jair Almeida

  9. Startup Car Park Valuation Model Template

    Start Up Car Park Excel Model and Valuation This detailed, yet easy to use three statement financial model will allow you to calculate your business' profit and loss, build a balance sheet and calculate cash flow, as well as perform a valuation for a start-up company in the car parking/parking lots business. Share On:

  10. Alternative Parking Systems: Automated Parking Business Model

    The business idea is simple: an automatic parking system stacks cars vertically. It uses driverless technology to get the car into its space. This article will discuss how it works, the benefits and other alternatives to Automated Parking and how you might consider this as an option as you explore new business opportunities. Table of Contents

  11. (PDF) A Business Model Based on Solving the Parking ...

    In this paper, we present a hypothetical start-up business model named as Parker. The increasing density of urban traffic and the number of personal vehicles made it even more difficult for...

  12. Chapman Taylor

    Autonomous vehicles. Self-parking vehicles present perhaps the greatest potential future disruption to the MSCP model as we currently know it. Autonomous cars will allow for more compact car parks - research by the University of Toronto has calculated that a well-designed car park facility could hold as many as 87% more cars than it would with conventional cars.

  13. Car Park Business 10-Year 3 Statement Financial Projection Model

    Excel template (XLSX) on Car Park Business 10-Year 3 Statement Financial Projection Model with a supplemental Excel document. A Car Park Business 10-Year 3 Statement Financial Projection Model is essential for parking facility management. It forecasts income, expenses, and cash flows, aiding strategic planning, pricing decisions, and resource allocation.

  14. 6 Steps to Build a Parking App

    Fortunately, the modern IT industry can provide a solution answering how to create a parking app according to the following steps: Create a business plan. Study the competitors. Hire experienced developers. Create a functionality list. Launch an MVP. Consider a UI/UX of your app. Think about advanced features.

  15. Top 5 reasons workplaces should implement a parking ...

    1. Align your car park with your flexible workplace The broadening definition and growth of flexible working are changing the game. As a result, there has been a noticeable shift from a traditional 9 a.m. to 5 p.m. model to a more malleable working structure.

  16. What is The Future of Airport Car Parking

    In the short term (to 2025), car park utilisation and growth will reflect the extent to which TNCs and on-demand services drive further growth in PUDO. In the medium to long term (2025 to 2040), strong growth in EVs is expected. ... Digital technology is allowing rapid innovation in business models. Ride share has been accepted by the market ...

  17. Financing Parking

    We have used a number of tools to identify the potential cost of providing for the peak and helped our clients and stakeholders re-scope these peak demand problems in a more cost-effective way. Financing Parking viability assessment helps inform the selection of the most appropriate 'financial model' to take new car park scheme (s) forward.

  18. PDF CONNECTED CAR BUSINESS MODELS

    Successful connected car business models will put the focus on the user, not the vehicle. Automotive OEMs urgently need good answers to the challenges involved. As the connected car market evolves, all the businesses in the value chain will increasingly put the user, not the vehicle, at the center of their eforts.

  19. Parking Lot Business Plan [Sample Template]

    A car parking lot business, also known as a parking facility or parking garage business, is a venture that provides parking spaces for vehicles on a commercial basis. It involves the operation and management of a designated area or structure where people can park their cars for a specified period of time, typically for a fee. Car parking lots ...

  20. Car Park Business 10-Year 3 Statement Financial Projection Model

    A Car Park Business 10-Year 3 Statement Financial Projection Model is essential for parking facility management. It forecasts income, expenses, and cash flows, aiding strategic planning, pricing decisions, and resource allocation. It supports decision-making related to maintenance costs, expansion plans, and technology investments. Accurate projections empower car park businesses to adapt to ...

  21. Understanding the breadth of car park management

    Boost efficiency. Managing a car park is time-consuming, facilities teams are often stretched, with multiple responsibilities and tasks to complete throughout the day. Parking management systems help make their lives easier through automation, freeing up time and easing administrative headaches. Doing this makes a car park work more efficiently ...

  22. Start Up Car Park Excel Model and Valuation (Excel XLSX)

    This detailed, yet easy to use three statement financial model will allow you to calculate your business' profit and loss, build a balance sheet and calculate cash flow, as well as perform a valuation for a start up company in the car parking / parking lots business.

  23. Are Parking Lot Businesses Profitable? [Business Model]

    The advantage of this model is that you can have the same staff selling event tickets and collecting parking fees, minimizing staff. 3. Manned Parking Booth Model. This third model involves having a fully manned parking attendant booth located inside or at the entrance or exit of your parking lot, and has an employee who collects payments.