What Are Parking Ratios?
Some may say that ignorance is bliss. However, when it comes to revenue potential, this can be negative as you lose out on the potential to generate extra income. In the commercial real estate industry, knowing the ratios of parking and the possible revenue forecast is essential in creating a successful parking area along with a reliable source of revenue.
Parking Ratios Defined
A parking ratio simply put is the result of taking the total number of parking spaces and dividing it by the total property’s gross leasable area or GLA. This is commonly shown as per 1000 square feet of the property. For example, a property that has a total GLA of 30,000 square feet with around 150 parking spaces would have a parking ratio of 5 parking spaces per 1000 square feet.
Highly populated areas typically have set parking rations as ordinances and vary by property type. For example for an area with shopping centers, these parking ratios are much higher than a residential one. Considerations for parking ratios need to also include those for disability parking. These spaces are typically larger and equate to more space. However, it is a requirement that parking areas have readily accessible parking for all including those with a disability and are protected under a Disabilities Act. An operator may need to define their parking ratios through the parking lots in sections in order to get a more accurate parking ratio reading as it would include a more precise square footage. .
The Larger the Ratio, the More Pricey It can Be
The old adage of you’ve got to spend money to make money is true when it comes to parking ratios. The higher the parking ratio, typically the more desirable a property or business is to a future tenant or customer. However, these higher ratios can present higher maintenance fees and other costs associated with parking lots. This can be offset through rent and fees, as well as in some cases like in businesses and shopping center areas, paid parking.
Current trends with parking ratios are pointing to higher ratios as all drivers are asking for more parking areas. This is true in all sectors of parking such as residential and commercial. This makes sense as we can see a greater influx of drivers on the roads and commuting through various areas. The behaviors of the modern driver have shifted from carpooling and public transportation, to one where they drive themselves. This has led to an increase in drivers on the roads and those looking for places to park. This strains the current number of parking areas in place. In order to address this, the use of digital parking and the addition of other parking areas are being deployed. New areas being built include more parking, and areas that can’t expand due to restrictions, are able to incorporate smart parking technology to increase the efficiency of their parking lots to maximize their parking ratios.
For more information on how to maximize your parking ratios, and incorporate smart technology into your parking, be sure to reach out to a knowledgeable staff member of ParkingBadge today! Request a demo now! https://parkingbadge.com/request-demo/
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ParkingBadge parking management software and mobile app is an interactive cloud-based platform that allows property owners and property managers to efficiently and conveniently manage their parking facility. With innovative Parking Management Solutions, operators can maximize their parking, maintain tenant and user accountability, enforce their rules and regulations, increase efficiency, and generate revenWant to find out more about ParkingBadge’s innovative digital parking permit software? Request a demo now! https://parkingbadge.com/request-demo/
