Parking Software and an Increase in Tax Revenue
Parking has been a major part of the economy bringing in over $30 billion for the commercial real estate industry. Many professionals of real estate see the parking industry as one that is static and an afterthought. However, that thought process is changing as innovative solutions to construction, and operation and management of parking facilities have begun an exciting change to parking and parking facility management.
The face of parking is shifting to one that is innovative and technologically forward with updates, management styles, tools, and equipment to run the parking facility of the 21st century. These changes are motivated by a changing world, and an ever changing demographic and urban design. The parking facility user has changed from the past to a generation involved heavily with technology and devices. This means that parking must change with the times.
Counselors need to be aware of the changes happening in the parking spectrum in order to adequately advise clients on how to maximize their parking facilities for greater real estate investment returns. It is sometimes thought that parking revenue is a secondary income source with minimal value impacts, however, with evolving technology the returns for a parking component can add significantly to real estate returns while also improving the customer experience. The monetization of parking is also gaining momentum with reports by the IRS showing substantial increases in spending. With these reports, it can be said that more and more investment capital is becoming a focus on parking facilities as well as in the parking industry itself. It is essential for industry professionals to understand the trends behind the changing face of parking. The two major key trend areas are technology impacts and societal demand factors.
Technology Impacts
Technology is a driving force in the parking industry and has gone from being a pipedream to one that is a reality and a requirement for new car shoppers. Vehicles and devices are becoming more advanced with time and new technologies. These technologies range from connected cars, dynamic pricing, mobile apps, online reservations, payment types switching to digital, License Plate Readers (LPR’s), and mechanical parking systems.
These technologies have led to significant benefits with an increase in pricing options and flexibility, as well as an increased overall occupancy in the facility. The most immediate benefit is a reduction in operating costs. There is also a shift from a need of human monitoring and work as technology makes a switch to a more digital face These parking facilities are most common on campuses, hospitals, office complexes, stadiums, and high population areas. These areas also include residential spaces and smaller facilities.
Societal Demand Factors
Over the years, there have been many societal changes that have created a push for changes in the parking industry. These factors have driven certain aspects of the industry to change and meet the growing needs of users. These are traffic congestion, gas prices, increased desire for liveable or walkable communities, focus on environment and sustainability, the aging population, an increase in mass transit, migration to urban areas, and concerns about safety. There are numerous other factors that have also contributed to changes in the industry with a push for more technologically advanced parking systems. These systems are equipped with cameras, sensors, lighting systems, signage, and a mobile based application that can let a user know in real time the space availability and pay fees and more.
This shift in technology has revolutionized the industry into one that is convenient and better suited for today’s modern users. With improvements to tracking, security, and more; parking has made a major shift that also improves the facility for owners. Spaces are able to be filled with greater occupancy, costs can be reduced, and income can be improved. The end result is that more and more property owners are realizing the full potential of parking and making improvements to their existing infrastructure. From societal pressures and changes in the typical user, these systems are being one of a kind. Counselors and operators need to be aware that with these significant changes, clients need to be advised of the potential of parking facilities and real estate investment returns.
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