Far too often parking is an afterthought when commercial property owners are reviewing their assets. Parking services are often treated as commodities rather than what they really are, revenue-generating assets! All too often we are asked for the lowest price possible when submitting proposals for parking management services, in effect, commoditizing the parking aspect of the asset.
Parking garages are assets that can generate significant revenues for owners. Parking facilities associated with office buildings can enhance the overall cash flow of that asset when operated in a manner that encourages aggressive management through marketing, technology use, and comprehensive reviews of tenant lease obligations as well as other areas. Adding sustainable revenue streams can increase the long-term cap rate on your asset.
Office markets in the Southeast continue to deliver new parking needs. In Miami alone, it is expected that over 500,000 square feet of new office product will be delivered in 2018 "Blanca CRE Q1 Report". In Atlanta, construction started on 350,000 square feet in Midtown alone in Q1. These new office spaces will create new parking demands and new parking revenues for owners.
With an estimated 120 million plus Americans driving to work every day, there are significant revenue opportunities to consider when looking at your parking asset. Helping owners achieve the maximum return from their parking asset when conducting due diligence on a potential purchase or new development is what we do.
Parking is not a commodity. It is an asset.