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INTRODUCTION
Parking represents an evolving $30 billion1 commercial real estate industry that is far more dynamic than perceived by most real estate professionals. Many real estate professionals see the parking industry as static, requiring little thought or attention. Still more believe there are few innovative solutions to the construction, management and operation of stacked parking garages, open lots or on-street metered spaces. Nothing could be further from the truth.
The parking industry is rapidly changing with creative revenue enhancements, technology updates, fresh designs, innovative management and new operating initiatives. Because of ever-increasing profit expectations, changing demographics and urban design differences, parking has had to quickly adapt. The face of parking is also changing because the average driver is changing. With a rapidly aging baby boomer generation living in the suburbs, and millennials flocking to the cities, sans cars, parking industry professionals have had to keep pace with the new dynamics. The result is that the value contribution of the parking component is evolving. Counselors need to be apprised of the significant changes occurring in the parking spectrum to appropriately advise clients on how to maximize their parking facilities for greater real estate investment returns. Often, parking revenue is considered a secondary income source with minimal value impacts, however, with evolving technology the returns for a property's parking component can add significantly to real estate returns while improving the customer experience.
Parking facility monetization is also gaining momentum. "More than $2 billion was spent by infrastructure funds to acquire the parking concessions at The Ohio State University campus ($483 million), Chicago on-street meters ($1.15 billion) and Chicago Millennium Garages ($563 million)"2. These three recent transactions represent "more than the value of the top North American parking companies."3 If these three transactions are any indicator, more and more investment capital is going to focus on parking facilities as well as on the parking industry.
Industry professionals should understand the trends behind the changing face of parking. Two key trend areas are technology impacts and societal demand factors.
TECHNOLOGY IMPACTS
Technology continues to push the parking industry in new directions. As such, exciting new developments such as real-time dynamic pricing models, greater use of advance reservations, mobile parking applications and mechanical parking systems are becoming more commonplace.
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