Frequently Asked Questions
These are answers to commonly asked questions about our services, the industry and how we can maximize the value of your parking garage or parking lot.
Parking Consultants
Why should you hire a parking consultant?
The parking industry is always evolving. Therefore, it is important to engage with experts who focus on parking every day and have a deep understanding of parking investment strategies, technology solutions and industry trends.
Why should you hire Parking Advisors?
We have a track record of creating valuable parking solutions for our clients and maximizing parking income. Our team continuously builds on its extensive knowledge base as we work across all major markets and parking sectors.
Our Services
What is a parking audit?
A parking audit typically reviews a parking operators’ financial controls for a specific parking facility. Parking Advisors’ Value Add Assessment provides a more comprehensive analysis. We evaluate all of the factors that impact value, including the facility’s overall business strategy and market position.
Do investment sales brokers hire Parking Advisors?
Yes. Investment sales brokers regularly contact Parking Advisors to help craft a clear, credible narrative about the value potential of complex parking assets and different parking lot investments.
How do clients use a parking development feasibility analysis?
Our development feasibility projects typically have three main components: A 10-year financial projection, a shared use analysis, and a design review. Our development feasibility analysis is used for internal budgeting purposes, to ensure projects will meet the demands of future tenants, and provide additional details to lenders.
How does the technology RFP process drive value?
Technology is the backbone of operations for parking facilities and parking garage companies alike. Selecting the wrong technology can restrict a parking asset’s value and result in increased operating costs and low customer service ratings. Parking Advisors identifies technology solutions that best fit the needs of the parking operation and its customers.
Why is it important to regularly perform an operator RFP?
Parking Advisors recommends issuing an operator RFP every 2 to 4 years to ensure operator fees are competitive, staffing levels are optimized, and the owner’s expectations are clearly outlined. Parking management companies continually change their teams and fee structures; therefore, it is important to regularly evaluate the potential options.
What services doesn’t Parking Advisors provide?
Parking Advisors does not provide parking architecture, engineering, or restoration services.
Parking Industry Metrics
Where can I find reliable industry metrics?
There are a number of reports that attempt to estimate the industry’s size in terms of revenue, number of parking spaces, or number of parking facilities. The reality is that reliable industry data is difficult to find due to the industry’s poor technology infrastructure.
How many parking facilities are there in the United States?
Industry reports estimate that there are between 25,000 and 50,000 parking facilities in the United States.
Is the parking industry shrinking?
Parking Advisors has found that the need to control parking lots and garages has grown as cities grow and expand due to urbanization. This results in an increased need for parking technology and parking management companies.
Where can I find parking management companies and which metrics are important?
Some parking garage management companies manage thousands of garages and lots and others may only manage a handful. Therefore, the number of facilities, employee counts and amount of revenue processed can vary greatly. The most important criteria we use to evaluate parking operators includes the local team, proposed strategy and fee structure.
Parking Investments
Are parking facilities a good investment?
The simple answer is yes. However, it is critical to understand the submarket’s supply and demand fundamentals, the demand drivers which impact a specific facility’s revenue, and future potential market changes.
How do you assess the value of a parking garage?
We have developed a sophisticated 10-year financial model that we use to project all of the revenue and expense line items. Our model generates IRR and cash return metrics that we benchmark to industry standards.
What is the value of a parking space?
The value of a parking facility’s spaces can vary widely based on demand drivers impacting the facility, parking taxes, and the efficiency of the parking operation. For example, valet service parking facilities typically have a lower value per space than a self park operation because of the valet operation’s additional staffing costs. Therefore, it is extremely difficult to use a sales comparison approach to value a parking garage.
What is the typical margin of a parking facility?
The margin of a parking facility can vary widely based on the facility’s type of operation and size of the facility. The operating margin of a self park garage is typically 80% to 90% before accounting for real estate taxes, property insurance, and utilities.
