Parking is a multi-billion-dollar industry that can be extremely profitable when done right.

While it may be difficult for the average person to understand the scope of owning and operating a parking lot, the industry is highly complex and constantly changing.  

With a clear business plan laid out and strategic objectives in place, you can create an elevated parking experience that will (literally) drive traffic right to you. 

Let’s take a look at a few things you need to consider in order to ensure success in your parking real estate investment. 

Plan Your Business

All successful businesses start with a thorough and well-thought-out plan. Parking is no exception to this.

As part of your plan, you should consider whether you want to hire parking managers. Partnering with a company like REEF will take the daily operational tasks out of your hands and will give you the tools you need to increase your parking revenue. By implementing innovative and modernized solutions, you will be able to attract more customers to your lot and bring in more revenue.

Of course, you’ll also need to lay out a financial plan to determine how much you’re able to invest into your lot and what you’ll need to earn each month in order to make a profit. For example, lots that offer more services, such as a valet or shuttle, may require more upfront costs but may also be able to charge more. 

Buy the Lot/Land

Location is one of the most important elements for determining the success of your parking lot. You need to consider what is around the lot, what other parking options are available nearby, what the traffic volume is like in the area, and how much you will be able to charge. 

When looking for a place to develop your lot, consider looking for a place where the demand for parking will be high. Are there office buildings nearby? Places to shop? Is it in an area where electric vehicle usage might be higher? 

Design the Layout

Depending on whether you buy an already built lot and the condition it is in, you will likely need to invest some money to get things up and running. 

A basic parking lot may seem as simple as designating spots and providing a place to pay. Still, there are many operation considerations to work through, like a rate structure, operating plan, equipment procurement, and on-site amenities. You can also choose to elevate the parking experience for your customers by including a valet stand and, for larger locations, a shuttle service. You need to consider what will set your lot apart from other lots in the area to drive customers to you. 

Make sure you comply with government regulations for your lot to ensure that everything is built to code.

Hiring Staff 

From front-gate operators to valet drivers, the staff you choose to employ is entirely up to your discretion. Some lots will be run entirely digitally by using parking apps and security cameras, whereas others may have a cashier, custodian, security guard, valet driver, shuttle driver, and more.