How to increase the returns and lower the costs of private parking garages

Parking lots shape a major part of our urban landscapes and economies. They can be bustling hubs for weary commuters and eager travellers, or lie vacant and unused. In a post-pandemic world, the demand for parking has plummeted and as remote and hybrid work becomes the norm, thousands of private parking garages are left unoccupied, posing both an obstacle and an opportunity.

The global parking industry is estimated at a whopping US$10 billion and private businesses with unused parking lots can tap into this market to unlock new revenue streams. At the same time, a lack of parking space contributes to carbon emissions and traffic congestion. A shared approach to parking management can help smart cities move towards more sustainable options and change the way we plan our urban spaces- less on-street parking giving way to more green spaces.

Shared parking arrangements have next to no setup cost for businesses that already have a private parking garage. In fact, you likely already have the basic infrastructure in place and the easiest way to start renting your car park is to partner with a smart parking solutions provider. By bringing in a technology-based solution, you can automate processes and make management easier. Moreover, partnering with a smart parking provider makes it easier for you to find customers while avoiding the hassle of reservations and helping you manage the accounting for multiple transactions. This helps your business stay competitive with commercial parking lots and future-proofs your revenue model. With the rise of automated vehicles and electric vehicles, a smart parking solution is vital to staying technologically relevant.

There are two factors to consider before you start renting out your car park: the layout of your car park and who you will be leasing to. Reevaluate the layout of your parking garage to determine which spaces are under-utilised and which are overused. A plug-and-play smart parking solution can help you maximise the use of space (and your profits) while requiring no effort from your end. Second, consider who you can rent to. In most circumstances, your options will be limited to employees from surrounding companies and sometimes residents in the area who don’t have their own parking spaces and are looking for a long term parking option. Even though it requires some work, these are the most manageable groups because you can collect monthly rent and only have to deal with a few people. ( Other groups you can rent your parking to are travellers, commuters, tourists, expats and project based workers, and residents without their own parking spaces. The returns of these groups are higher, but harder to manage. Again, if you partner with a solutions provider, they can help you find new customers, handle the wide variety of renters and payment methods, customer support, and automation, with no extra effort from your business.

In the long run, private businesses with unused parking lots can tap into a lucrative revenue model by partnering with smart management platforms to optimise and monetise vacant parking spaces. The overall smart parking market is estimated to hit US$ 4.4 billion by 2023, with Germany emerging as the fastest growing market, and the demand for smart parking solutions grew at 18% CAGR from 2017 to 2021.