There are approximately 246 million registered vehicles in the U.S.† – or roughly two per household.‡‡ For investors, parking may provide a host of benefits, including:
Strong Cash Flow
Estimated $25-$30 billion in annual U.S. revenue. ‡‡‡
Hedge against inflation
Should inflation rise, parking facilities can react more quickly than other real estate assets, as rates can be adjusted daily, or even hourly.
- Low operating and maintenance costs
- Minimal labor expense, especially as automated services grow
- No expensive tenant improvement or leasing commission costs
- Potential for long-term capital appreciation
- Redevelopment opportunities
- Fragmented Industry
- Heavy demand – population growth in U.S. cities*
- There are approximately 13,010 parking facilities in the United States**
- Parking Facilities produced approximately $25-30 billion in revenue in 2012.***
- There are approximately 246 million registered highway vehicles in the United States.†
- From 1990 to 2009 the number of state motor vehicle registrations has increased by approximately 30 percent.††
*According to 2010 U.S. Census data, the U.S population is projected to increase by 131 million people in next 40 years
**See 2012 U.S. Census and Federal Statistics – published in “Anything Research” annual publication.
***According to the International Parking Institute, see www.parking.org
† U.S. Federal Highway Administration, Highway Statistics, annual. See also, www.fhwa.dot.gov/policy/ohpi/hss/index.cfm
†† U.S. Federal Highway Administration, Highway Statistics, annual.
‡‡ U.S. Census Bureau
‡‡‡ International Parking Institute, Overview of the U.S. Parking Industry