Parking is an often-overlooked revenue stream for asset owners but the opportunity is significant. An increase of parking revenue by hundreds of thousands of dollars can give an asset value uplift of millions of dollars.
The typical parking asset revenue is in the range of $10-$30/sqft in urban areas in North America, with a potential increase of $1-$15/sq ft or more with dynamic parking rates.
With more and more tenants ending their leases, asset owners are unlocking new opportunities to recuperate revenue loss.
Dynamic Pricing Effortlessly Maximizes Revenue at Residential and Commercial Properties
Owners of residential properties are opening up their garages to the public as a new revenue source. A leading real estate organization’s residential property in Downtown Chicago has long been open to the public.
The team uses real-time parking business intelligence to manage parking groups at the location and ensure there is always sufficient space for residents.
The garages’ rates are managed by Smarking’s Dynamic Pricing engine, which automatically updates rates for their online sales channels, like ParkWhiz. This dynamic pricing engine strategically assigns new rates throughout the day, based on the real-time demand of the location.
When demand is low, rates reduce to become more competitive and during peak hours of demand, rates go up to capture revenue opportunities and control occupancy levels. Similar to the pricing strategy of the airline and hotel industry. This competitive pricing strategy resulted in a +43% month-over-month avg revenue growth between March and August, significantly outpacing the market.
As of October, their Downtown Chicago garage has increased revenue by +27% YoY, and has increased transactions by 87% YoY. A significant accomplishment when the industry is down -55% YoY on average.
Given the success at this location, the organization activated dynamic pricing at their luxury apartment in Downtown New York as well, resulting in a +754% YoY revenue increase within one month.
At a Manhattan location, another leading asset management firm recovered their year-over-year revenue faster than the New York region. On average, their Manhattan location generated 73% more revenue than regional locations.
As more commuters switch from public transportation to the safety of their private vehicles during the pandemic, behaviors are changing. People are searching before they go and compare their options.
With an excessive supply and limited demand, asset owners and parking operators are leveraging online parking reservation channels to drive the new demand to their garages.
Try Dynamic Pricing Risk-Free at Your locations
Smarking’s team is committed to accelerating the recovery of the market and unlocking new revenue opportunities for real estate owners. This dynamic pricing tool is available with no upfront investment or commitment for qualifying locations. Schedule a meeting to learn more and discover new revenue opportunities for your portfolio.