Why Car Parking Is A Struggling Industry In The U.S.

Only 10 percent of the parking in the United States is paid parking, but the industry that runs it rakes in billions. For decades, it has been a largely stable, growing industry. Historically it has been dominated by small and family businesses, but now two players are publicly traded companies such as SP Plus (SP+) and ABM. However, the industry is facing some challenges. Low barriers to entry make it a crowded, fragmented industry. Competition is fierce. It has also suffered from the blows e-commerce has dealt brick and mortar retail, and the rise of ride-hailing. And now a post pandemic world where workers are rarely driving into urban areas. On top of it all, demand is declining in some markets. Parking garages have had to adapt, invest and prepare for a future where fewer people may drive or own cars. But that takes capital, and is risky. It remains to be seen how the industry fares as it expands and pivots to stay relevant.

Chapters:
00:00 — Introduction
01:33 — The parking industry
05:30 — SP Plus
09:28 — The future

Producer: Robert Ferris
Editor: Nic Golden Henry, Darren Geeter
Senior Managing Producer: Tala Hadavi
Graphics: Jason Reginato, Christina Locopo
Additional sources: Sidoti & Company

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Why Car Parking Is A Struggling Industry In The U.S.

[JogBird]

i thought this would be about how cities are paved over for parking spaces that sit empty most of the time

[prankmeteors]

Wow CNBC, you really just decided to make a fluff piece for the modern parking industry, even after interviewing Donald Shoup. Something is wrong here.

[lionofgod]

I definitely thought the video was gonna go in the direction of attacking parking especially free parking, as being a huge waste of tax money and as being a general waste of valuable land

[JasonB]

When people go places in US. We always ask “Where do we park?”. This is not the case in other countries. They usually ask which metro, bus, or tram to get to the location.

There was a disillusion that more parking equals more people can visit. But in reality there was either too much parking lot or not enough. Places with large free parking were part of large sprawling malls that were once great places to be at. When you think about it. Malls back in their glory days actually showed how good walkable community spaces can be. Sure there that massive parking lot around the mall but once the customer got out of their car, they were treated to a large shared spaces filled with stores and shops that are easily accessible by walking. Before the giant mall, Americans had to drive from store to store which is not so convenient. The problem was once people have ditched the malls due to anchor stores closing down and rise of online shopping, there was no need to go to the mall anymore. All that is left is a desolate parking lot and dilapidated buildings.

In countries with great mass transit and mixed use zoning, they have shops, restaurants, bars, and businesses alongside multi family homes. They can get everything they need close by, and if they want to go somewhere else, it’s a quick hop on mass transit. At their destination is more close by shops and restaurants that can be access by foot. These shops and businesses will always have foot traffic and all without the need for a single car.

[johnniemiec]

I get it's his job, but the guy from the Parking Advisory Group is really trying to polish a turd. The entire appeal of the parking industry is low cost to entry, low cost to operate. As you have to add technology and services both costs and risks go up. This is good though, I live near Detroit, that city needs way less surface parking lots.

[adambuesser]

What is Strong Town's solution to car parking? Consider converting empty parking lots into development housing.

[TikkaQrow]

They took all the trees, put 'em in a tree museum
And they charged the people a dollar and a half just to see 'em

They paved paradise, put up a parking lot

[FrancisOrtizOcana]

Why don't you clarify this is an advertisement for SP. This is wrongm

[blava]

Because car culture is so dominant in the U.S. that cities feel like they have to accommodate them with parking lots, more highways, bigger lanes, etc

[matthewboyd]

Transport:

1: tram or bus (no parking, no traffic)

2: ebike or bike (10 per parking space)

3: emotorcycle

4: taxi (less parking but causes traffic)

5: walking

6: personal transport (1/2 of city now for parking, spreading everything out causing longer trips and causes traffic, slowest transport option)

[afriendlymedic]

Car dependency and it’s consequences has been a disaster for American society

[jakedcrane]

Long term problem has been that some americans have opposed the idea of building more multistorey parking garages that helps to park more cars into much smaller area. One multistorey parking garage can replace 2-4 on-ground parking lots.
Remote work and working from home is a good way to reduce commuting.

[SwiftySanders]

Maybe we should just remove mandatory parking. Then existing parking companies can charge an appropriate premium on parking.

[julius.]

I do not lament the demise of the parking lot. A lot of those properties this would be about how cities are paved over Because car culture is so dominant in the U.S. that cities feel like they have to accommodate.

[NicksDynasty]

We have way too many parking spaces. We need to convert some of that land to housing, parks, bike lanes, expanded sidewalks and retail

[PhD_Dad]

Yet every time I have to park in a parking lot, there are never any spots available.

[mickmatic]

Parking lots, the actual worst way to develop urban areas. The US would be so much wealthier if it had decent cities.

[growingup]

The demise of Parking Business sounds like a huge W to me. time to convert those huge parking craters in our cities into mixed use housing.

[johnniemiec]

"Low friction payments, not coins in a meter"... but my dude, coins in the meter is the lowest friction form of payment besides free parking. No apps, no cards, no PIN. Just a handful of change from the cup holder.

[isaac]

*Most people I know never drive their cars to downtown either because of those crazy hourly parking rates. Not to mention chances of your car getting broken into, booted or wrecked. Paid airport parking is the riskiest and not worth the hassle* . When going to downtown, I leave my car at home and catch a Lyft/Uber. Sometimes the train or bus which are more convenient or cheaper than what I’d pay to park my car there when there are events in town.