The Value of Commercial Parking Investment
July 14, 2021
Investing in An Often Overlooked, Yet Profitable Sector of Commercial Real Estate
Commercial real estate has proven to be a reliable source of income for investors despite economic ups and downs. Commercial and residential building managers need parking resources to operate their businesses effectively, as do concert venues, sports arenas, hotels, and more. However, many investors, despite having the financial resources and industry know-how, have not seriously considered the profitability of parking investments.
Commercial parking investments can be extremely lucrative, if selected and managed correctly. There are many submarkets in the United States where parking is an invaluable asset. Movie theaters, casinos, airports, office buildings, central business districts, and other buildings and venues require safe, convenient, and affordable parking to accommodate visitors, as well as their clientele.
Easy access to ample and convenient parking is also a significant factor that corporations and investors consider when scouting locations for new projects. Most high capacity environments such as concert and sports arenas, retail outlets, airports, etc., have a high parking demand. To better service patrons, a significant number of parking spaces should be available. Therefore, parking investment opportunities exist in various markets.
Management and Revenue
Parking garage investors, who carefully manage their properties, earn millions of dollars in yearly revenue. At Chicago-based Parking Advisors, Inc., clients and partners have watched their profits increase significantly. This is in large part thanks to the advantageous use of our technological resources and methodical, detail-focused analysis services.
There are many moving parts to structuring and executing a profitable investment plan for parking lots and parking garages. In addition to supply and demand fundamentals, investors must consider location, and accessibility. Additionally, profit projections, feasibility, operating costs, and value add opportunities should be carefully calculated.
Finally, monitoring parking operator performance, analyzing long-term trends, implementing technological advancements, and securing reputable offsite and onsite management must be addressed to ensure profitability and long-term success.
While many of these factors can be easily observed, the key to success is the knowledge and experience Parking Advisors brings to the table. Lacking this, the effort required by many less experienced parking investors may exceed the potential reward. Generating strong returns requires an understanding of the business and infrastructure. That is why it’s important to work with a qualified parking management company when considering parking lot investment .
The Nation’s Leading Parking Investment Consultant Firm
In order to make a substantial profit through parking investment, it is also important to invest in parking management services. At Parking Advisors, we carefully consider every possible factor when analyzing an investment property. Our services, which range from acquisition and disposition analyses, to asset management tracking, have increased cash flow for over $20 billion worth of parking assets.
Our extensive knowledge of the commercial real estate market, paired with more than twenty years worth of combined parking operations experience, has allowed our team to develop a company that is one of the industry’s leading consultant firms in the country.
Contact us today to learn more about our services.