How to implement effective parking strategies for mixed-use developments

April 3, 2024

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Recent years have seen a rise in popularity of mixed-use developments. The appeal of compact and pedestrian-friendly spaces has demonstrated that city residents are increasingly seeking a variety of uses in their neighborhoods. 

Being able to grab a coffee, stop into the library, or browse a local store without having to jump into the car again (or at all) gives mixed-use development a leg up on sprawling strip malls and standalone restaurants built in a sea of parking lots.

When it comes to building these types of developments, though, things can get a little more complicated, especially when cars come into the equation. Although mixed-use development pairs naturally with dense urban cities, it can be a bit of a head-scratcher if parking is required. 

Mixed-use Developments and parking

When it comes to planning a mixed-use development, it’s important to have a strategy for the layout and allotment of the parking in order to make sure car use doesn’t take up too much space in the development.

The cost and space usage of parking makes it in the best interest of a developer to maximize its use within the development. Although most developments in the U.S. have to build a minimum amount of parking to adhere to local regulations, building more parking on top of that can be avoided with proper planning and parking management.

Mixed-use developments also come with their own advantages, such as sharing opportunities and expanded rental agreements, which can be leveraged to keep the development’s parking lot efficient and well-used.

Before we talk about the strategies that can be used to improve your mixed-use parking management, let’s discuss a few of the challenges that are inherent to parking at a mixed-use development.

The challenges of parking at mixed-use developments

Traditionally, one of the most challenging things about parking management at mixed use buildings is appropriately allocating parking for different types of uses, while also considering the sizes of units. Different types of uses require varying amounts of parking. These various uses will also experience a wide range of parking times, duration, and more.

Residents of a building who own a car always need to park their car for overnight periods, while visitors to restaurants or retail often require parking for no more than an hour or two. Convenience and grocery store visits are typically even shorter, not exceeding 15 to 20 minutes for most people, leading to a lot of cars coming and going between spaces throughout the day.

What quickly becomes clear about mixed-use developments is that some parking uses will naturally complement each other, while others will not. Complementary uses can share parking, allowing the developer to avoid having to allot specific parking areas for each individual use. Some uses, on the other hand, may not be as complementary, making the equation a little more complicated.

So how do you address this problem? Luckily, technology has offered a more efficient way to manage parking at many levels for a mixed-use development. Let’s take a look at a few parking strategies you can use for mixed-use developments. Note: some of these strategies are mutually exclusive, making you have to decide which approach works better for your development.

Parking strategies for mixed-use developments

1. Share parking between uses

Shared parking isn’t anything new. There are many uses that complement each other when it comes to parking. Office uses and restaurants are ideal examples. The typical evening restaurant and office space can use the same parking lot. Most office spaces clear out around 5 pm, while most restaurants open for dinner don’t start receiving guests until after that time. If these are the types of uses you're including in your development, consider lumping their parking allotment together.

Some uses might not be natural for parking sharing. A coffee shop, for example, is typically more of a daytime establishment, and can’t share parking as easily with an office also being used during the day. With many workers going remote these days, though, offices may be able to share more parking than they would in the past.

There’s also a lot of crossover parking in mixed use projects. Ben Weber, a parking planner for Walker Consultants, has collected data showing that many users park once for several uses. This fact can then be inputted into the parking model to reduce parking needs for that development.

Another strategy is sharing parking with an existing parking lot outside of the development. As Ben Weber puts it:

"If there’s already plenty of parking near your development, you could form a shared parking agreement, such as subleasing the parking lot for your own uses."
– Ben Weber, Walker Consultants

He continues, "One problem is that the parking owners often don’t want to get into long-term parking agreements, keeping it free if a future tenant needs it. You also have to consider factors such as insurance when making such agreements work."

2. Keep residential uses separate

Due to the nature of residential parking, users need to be able to access parking 24/7 and keep their car parked for as long as they need. Because of that, one common strategy for residential uses at a mixed-use development is to assign spaces just for residents, ideally kept separate from the rest of the parking. A specific part in the garage or parking lot can be allotted for residential use, using good signage or physical barriers to make it clear that it is a separate parking area. 

If you do decide to keep residential uses separate, then you won’t be able to implement sharing between residential and other uses, which is a big part of other strategies mentioned in this article.

3. Use unbundled parking for residential (and other) uses

Mixed-use projects can also choose to make their parking unbundled, typically on the residential side. Ben Weber points out that multifamily housing projects are increasingly not offering assigned parking spaces with their units, decreasing the parking footprint of the residential side of a development and freeing it up for sharing opportunities. 

 nbundled parking allows residents to purchase a space if they require one, ensuring that valuable space isn’t wasted on apartment buildings that don’t need parking. In more urban environments where driving isn’t necessary for many residents, this system will allow you to keep parking only for residents that absolutely need it.

Unbundled parking has been estimated to save money for developers, and for renters as a result. A 1999 study found that a unit with off-street parking sold for 13 percent more than comparable units without off-street parking. Outside of building the minimum parking required for the development, developers can use these tools to reduce the amount of parking they need to build and transfer these savings to renters.

4. Expand options for renting and distributing parking spaces

Expanding the options for renting parking at your mixed-use building can allow people to rent and distribute their parking as they see fit. For example, building managers who rent unbundled spaces to residents can allow that renter to essentially sublease their spot to someone else for certain time periods.

With this system, someone who works daytime hours away from home can lease out their space to someone who will be using that development during the day. This can work in the inverse way too, with a commercial use leasing out their parking once they head back home to a restaurant with dinner customers.

5. Use a modern parking management system

Because of the complexity of mixed-use parking and unbundled parking systems, a more sophisticated system can be helpful to managing it effectively. Many of these modern parking management systems allow you to group together specific uses, manage parking contracts for specific spaces, and control access to parking lots and garages. These systems can take the complexity out of the process of allocating and managing parking for mixed-use developments. 

The above example, of subleasing out your parking spot to someone while you’re away from home, is made possible by these modern parking management systems. Handling these complex arrangements used to require strict management and complicated spreadsheets. With modern technology, parking rentals and subleases are shown plainly within the system. 

One common problem with mixed-use developments is that residents and their guests often park in retail parking lots. Although the separate residential parking strategy could help alleviate this problem, overflow parking from residential might still seep into the parking. This makes implementing a better system a necessity for mixed-use buildings, especially one that requires everyone to pay for parking.

Parkade can help you make mixed-use parking a breeze

To assist with parking management at mixed-use developments, Parkade has implemented a new tool called Rule Sets. Essentially, Rule Sets allows buildings to lump different types of tenants into groups based on unit type. Then, the building’s management can control the amount and price of parking that these different groups can reserve.

Allocate parking and set prices by unit type

For example, Rule Sets at Parkade allow you to easily separate residential and commercial tenants at your development, offering them different prices based on the size of their unit. Rule Sets also allow you to separate parking rented to the public from parking you rent to tenants. This system allows you to keep parking affordable for those who rent space in your building, while also keeping open spaces at a premium for the public. 

Offer first hour free, surcharge on weekends, and more

For retailers who want to upcharge or discount parking on certain dates, days of the week or hours of the day, Parkade’s calendar-based pricing feature allows parking admins to easily do so.

Additionally, with the rules feature, businesses can offer a certain amount of free parking at specific areas and even validate parking for restaurants and other retailers in the mixed use development by scanning a QR code. 

Parkade allows you to fine-tune your system so that it effectively manages time-based parking use at your building. For navigating shared parking situations between commercial and residential uses, a system like Parkade’s is invaluable. The detailed records in Parkade’s system allows you to keep up with changes and adjust your parking offerings as needed.

With the right management approach and modern technology solutions, you can distill the complexity of a mixed-use parking area into an efficient system that works for every user of the building.

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BlogParking Management Software ROI

Investigating the ROI of parking management software

With parking being one of the largest drivers of ancillary revenue at multi-family properties, it's imperative to get it right. But just how much return can you expect from parking management software? Read on to find out.

Published: August 7, 2024
Hannah Michelle Lambert
Content Writer
Boosting ancillary revenue is often a major focus for property managers and owners alike.

Especially given that the baseline forecast for rent growth is slightly lower this year than average (2.5% versus 2.9%), properties are increasingly looking for ways to raise their bottom line without compromising the quality of living for their residents. 

One often overlooked but significant opportunity lies in parking. If managed well, it’s a potential treasure trove for additional revenue. But that’s only if it’s done well. 

Parking tends to be one of the biggest thorns in the side of a property manager. Because traditional systems — like spreadsheets and rentable items — are not built to handle tenant parking efficiently, teams aren't able to reap the full benefits parking has to offer as an ancillary revenue source. As soon as a team makes the decision to invest in a proper parking management system, the benefits often more than pay for themselves.

In this guide, we will explore those benefits, touching on both the financial and operational upside of a solid parking management strategy.

We’ve combed the data from all of our clients to identify the exact numbers to prove that there truly is ROI in parking management systems like Parkade. 

Understanding parking management

Before we dive into the numbers, let’s first establish a baseline of what exactly parking management entails. As any property manager will tell you, it involves much more than just hanging a tag on a resident’s car and calling it a day.

The key components of a parking management system are:

  • A system of record to track parking assignments, lease lengths, vehicle details, and parking prices, ideally integrated with your PMS.
  • An enforcement strategy that ensures parking rules are clear and establishes consequences (typically fines or towing) when someone breaks them.
  • A method to pay for parking, whether it’s bundled in with rent (which we don’t recommend) or paid for in a separate system.
  • A self-serve system for residents and guests to book long or short-term parking. 
  • If there is a gate on the property, provisioning and deprovisioning of gate entry should also be considered in the parking management strategy. 

The old-school way of addressing these needs isn’t cutting it anymore. Many properties are still using manual processes, like an Excel spreadsheet, rentable items, or even a physical piece of paper to keep track of their parking. 

And far too often, properties are relying too heavily on staff members to handle parking matters that take up a significant amount of time, like enforcement or guest parking.

Moreover, there’s one point that just can’t be ignored: If you’re still using old-school parking management systems like spreadsheets and rentable items, you’re leaving money on the table. 

So the parking management we’re discussing here that delivers positive ROI is a technology-led solution that automates all aspects of parking operations, improves resident experience, and unlocks new revenue streams.

Setting the stage: Residents value good parking

Delivering on resident expectations should be a main priority for any multifamily property, and parking is one area of the resident experience that is especially critical to consider here. 

65% of property managers cite parking as a top concern among residents. Whether it’s for existing residents or prospective residents, providing a simple, reliable, and flexible parking solution has a direct impact on the success of your property. 

Part of this is due to reputation. Properties have reported a 44% increase in their reputation scores after fixing their parking problems. And this boost in a reputation score can trickle into several different areas, boosting not only the number of new residents, but also leading to more renewals from existing residents.

But we know you want the hard dollar amounts, so let’s talk more about some real-world outcomes that Parkade's parking management software delivers. 

So, what do the numbers say about the ROI of parking management software?

Long-term net parking revenue for stabilized buildings

Once properties implement a system to help them optimize pricing and management of long-term parking, they see immediate gains in their long-term parking revenue. The average 6-month increase in net long-term parking revenue for the cohort of 7 properties we sampled was 24%, translating into thousands of extra dollars. 

Long-term net parking revenue for lease-ups

Better parking management also empowers properties to far outperform their projected revenue from long-term parking when they’re in the lease-up phase. 

On average, properties from the cohort we sampled estimated that they would bring in $15,925 on average from long-term parking revenue per month. But thanks to Parkade helping them optimize their parking strategy, better enforce their parking rules, and keep a better record of who is parking where, the average revenue from long-term parking was $23,450 on average, which is a 47.3% increase from the estimates in their pro forma. 

Total net parking revenue for stabilized buildings

For buildings that are already at full occupancy, the average increase in parking revenue sits at 31% once they implement Parkade’s parking management solution. 

Revenue metrics for lease-ups

The best time to implement new parking management systems is at the inception of the building. Getting parking right from the beginning ensures that you are maximizing total parking revenue from day one, as well as establishing a positive reputation around parking. Many properties underestimate the revenue from long-term parking and may often leave out potential short-term parking revenue altogether. 

When a few properties we worked with during this phase were estimating parking revenue at the start of their lease-up, they estimated around $35,000 on average. But the results, since they decided to go with Parkade right from the start, blew those numbers out of the water. In reality, they were able to bring in closer to $58,000 on average, which is a 66% increase from the estimates.

Short-term parking: An opportunity

The boost in revenue continues to be apparent when you zoom out to look at short-term parking, too. Short-term guest parking can be one of the most underutilized revenue streams, and represents a huge opportunity for multi-family properties to tap into. However, it's historically been very difficult or impossible for properties to see this revenue without parking management software that automates the process.

Especially in popular areas, like city centers or near shopping malls and sporting arenas, there’s often a high demand for short-term parking. When properties put a system in place to monetize this guest parking, they can unlock hundreds or even thousands of extra dollars per month. 

Automating guest parking

Without a good system in place to manage parking, many properties often leave guest parking as a free-for-all (meaning they don’t make money from it), or if they do attempt to monetize guest parking, it turns into a massive beast to handle. 

Erica, a property manager at Thrive Properties, told us about her pre-Parkade experience with guest parking, preventing them from delivering on a key resident need: “There was no world where we were doing short-term parking by the hour or even by the day because there was just no way to manage that.”

If you have a complicated or inconvenient system for guests to reserve parking, especially one where they have to walk into the office during office hours, guests are often more likely to try to get away with not paying for parking. (And if you don’t have a great system to enforce parking, they may very well get away with it).

With the right parking system, you’re able to give guests a flexible, 24/7 solution, removing any previous barriers that may have caused them to break the rules out of convenience. 
Maximizing guest parking availability

Another way that manual parking management may stand in the way of effectively monetizing guest parking is the inability to accurately track how many spots you have available for guests to reserve in the first place. 

Taylor, the property manager at Strata and Venue, shared her experience of desperately needing more guest parking and discovering they had a full 50 more open spots than they thought. 

“We actually had way more spots that we could have used for guest parking, but we didn’t know that because of the way we were using our parking system. Not to mention, we wouldn’t have the system to leverage them without a Parkade.”

When your parking management system gives you an accurate, real-time view of available spots, you can leverage guest parking to its full capacity.

Utilizing idle parking spots

A reliable parking-management system also allows you to make the most use of every single spot available. With technology that uses smart inventory management, properties can release idle or unassigned parking spots into the system for short-term use. So spots that would have otherwise been sitting empty between leases can suddenly be leveraged as an extra revenue-generating spot in the meantime. 

Net revenue for short-term guest parking

When properties have a great system to implement paid guest parking, without putting too much strain on their staff, they immediately see a boost in revenue.

They’re able to turn an operation that was perhaps bringing in no money — or some revenue, perhaps at the expense of staff time —  into a significant revenue source with little-to-no staff involvement. 

On average, Parkade customers experience a 303% increase in their guest parking revenue after Parkade fees. And there were some properties that saw almost a 400% increase.

Opex (operational expenses) savings

When handled manually, parking management can steal hours from on-site property management teams every week. Between fielding requests or complaints from residents, tracking down parking records, walking the lot to enforce rules, handling guest parking, and manually inputting rentable items, parking can quickly balloon into one of the most time-consuming tasks for staff.

Parking management software can automate away a lot of the most tedious aspects. For example, Parkade gives residents self-service access to reserve and pay for parking (while allowing for any rule sets the property wants to enforce), provides hands-off enforcement support, and even automates gate access via the app so that teams don’t have to worry about distributing or replacing clickers. 

Properties have seen that the time teams no longer spend on parking leads to a direct decrease in operational expenses. As a result, they can redistribute those team members' time to more meaningful tasks.

On average, we’ve seen properties decrease their operational expenses by $60,000-$100,000 from savings on parking operations alone. This means that they were able to save what’s equal to a full-time employee’s salary. 

Annual NOI improvement

All of the revenue metrics mentioned up until this point have been after Parkade's fees. 

When you roll everything up together — both the increase in revenue (after fees) and the opex savings — investing in parking management software has an incredibly positive impact on annual Net Operating Income (NOI).

Whether teams are looking to calculate their property value, secure financing, make operational decisions, or pitch to investors, NOI is one of the most critical numbers to boost. 

By coming at NOI from both sides, in terms of opex savings and revenue generation, parking management technology is extremely low-hanging fruit when it comes to boosting NOI. 

At the Parkade properties we surveyed, teams saw anywhere from a $66,000 to $126,000 improvement to their net operating income from parking alone. 

While parking may not seem like it deserves to be the biggest priority for many properties, the numbers tell a different story. By investing in a proper parking solution, properties are able to significantly improve upon all of their business goals, whether it’s boosting revenue, streamlining operations, improving resident experience, or all of the above. 

About Parkade

Parkade is the #1 parking management software for multi-family buildings. With our resident-facing app and staff dashboard, parking runs itself. Your team will boost revenue, reduce time spent on parking, and improve experience for residents and guests, all without lifting a finger.

Explore our features below, built for communities just like yours.

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