Why Car Parking Is A Struggling Industry In The U.S.
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- čas přidán 22. 05. 2024
- 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.
i thought this would be about how cities are paved over for parking spaces that sit empty most of the time
I was surprised over Houston, even as a big city it’s mostly empty spaces
Not in Chicago
The thumbnail sort of implied that. I like that they included a line about how there's way too much parking per person out there. It's kind of obscene
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
Great.... now I'll have David Byrne stuck in my head for days...😊😮
Bro, if you drive 5 minutes away from the urban area, the whole place is covered up with trees.
@@youngsoolee1349 If you don't have a car, you could be walking along stroads and parking lots in the blistering sun for a while, what with all the detours if you need to cross a street at any point and are forced to find a bridge or something. Besides, why shouldn't the place I live be allowed to have some nice nature and shade, some quiet spots, etc? Why should I have to drive out of town?
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
You tripping hard
@@jasonallen3678 czcams.com/video/mXLqrMljdfU/video.html educate yourself
@@jasonallen3678 No, it is basic economics and urban planning. Parking lots and car dependency has destroyed America cities.
Yeah, the video kinda promotes parking and brags how good it is 😩
Money talk
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.
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.
Mass transit is readily available in most major US cities, but most Americans would rather not take a bus or train. They prefer the comfort and convenience of their car to sitting on the bus next to some derelict who just vomited on himself. I live in a city of nearly 1,500,000 people, and on the rare occasion when I use one, the buses are mostly empty and kargely populated by those so poor they have no other choice.
My grandmother lived in Philadelphia her whole life and never owned a car or even learned to drive
@@libertarian4323 Define "comfort and convenience". Because, when I take the train to and from work, it's pretty great zooming right by the comfort and convenience of rush hour traffic.
@@Klako-ls6yt Not having to trudge to a station, wait for a train, or sit next to a wino/fentanyl addict are on my list.
@@libertarian4323 I'd still argue that waiting a few minutes for a train is more convenient than waiting in gridlock that greatly increases travel time. I've had days at work where there are very few people in the office until around 9:30-10 AM because an accident slowed the highway down to crawl.
Also, the idea that there are a ton of junkies on transit just isn't true from my experience. And even if I do encounter the occasional one, I can just ignore them easily enough. It's a lot easier to ignore an idiot on a train than it is to ignore an idiot in a car.
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
Funny thing is, this may be mentioned I'm Just starting the video, this was borderline forced on us, but definitely manipulated by wealthy magnates working against our better interests.
The film "Who framed Roger rabbit" is remarkably accurate, just the toons were poor people.
Japan and Germany have Car cultures too. Many countries do, but in the US we have minimum parking requirements and simplistic restrictive zoning creates car dependence.
The free market would create walkable mix use neighborhoods if it were legal.
The economics of those empty lots at the city center dictate that a building would be much more profitable but it’s not legal.
What's the problem....????
Why don't you clarify this is an advertisement for SP. This is wrongm
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.
Their population has declined
What is Strong Town's solution to car parking? Consider converting empty parking lots into development housing.
Or have apartments with underground parking for residents. It can be done...both!
Or better yet turn cars into both real estate and parking space....that way america can work live eat and sleep where they park!!
@@mathisnotforthefaintofheartthat’s extremely expensive to build.
@@Ariswalker-kr1pz It's a long term investment. And it's being done in Dutch cities. Obviously not cheap, but people do buy, so there is a market
Parking lots, the actual worst way to develop urban areas. The US would be so much wealthier if it had decent cities.
We aren’t a proper country
Car dependency and it’s consequences has been a disaster for American society
This isn't the future Ted wanted
Cars have given people the freedom to move around. Cars have given people a tremendous way to earn and become financially stable. What do you envision? Horse carriages? Traveling interstate?
its*
@@mathisnotforthefaintofheart Trains and buses, it's that simple
@@mathisnotforthefaintofheart lol! There are other ways to move around…!
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.
Yet every time I have to park in a parking lot, there are never any spots available.
There aren't any spots because absolutely everyone is driving there, since they all assume they can just get free parking. If we made hotels all free, people would complain there aren't enough hotel rooms too. One of the problems with extreme subsidies on any industry
You must live in New York or Chicago like me,because I don't know what these people in this video or comment section are talking about and it cost 35 bucks a day($20 for me now because of my employee discount).
@@mikea5745 Where do yall live where you don't have to pay for parking?
@@jasonallen3678 Anywhere in America that's not New York, Chicago, or maybe D.C.
@@user-hb5by4kf5j Ikr
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.
@Donaldo Thomoson ok what is your solution?
@Donaldo Thomoson agreeing with that here. Regulations needs to be a major thing and not just some minor small regulations in fear of a company leaving. HARSH ones that force these companies to build more affordable housing
Maybe we should just remove mandatory parking. Then existing parking companies can charge an appropriate premium on parking.
$20 for 1hr of parking coming right up sir!
@@chadnoneo9769 Based. Maybe then tourists will consider visiting by train instead.
@@chadnoneo9769 If that's the market rate, then fine by me. Anything less than the market rate is a subsidy and has to be paid for by something
@chadnoneo9769
Free parking is costing us collectively as a society much more. $20 for an hour will make people actually walk or take transit, leading to less traffic, less noise, less air pollution, less car deaths, less drunk driving. Total win for me tbh.
@@chadnoneo9769 fine by me, maybe you'll decide it's not worth it or better yet, not drive!
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)
And trains from city to city going 200mph is a lot faster than a car.
About 3 times faster
@@matthewboyd8689 Tram and subway are two different things dummy. But with that said, if you want light rail such as tram, walkable cities like Boston have them. Parts of NJ across NYC have them. So does Seattle and Salt Lake City. Boston is the only one you can possibly go car-free.
We have way too many parking spaces. We need to convert some of that land to housing, parks, bike lanes, expanded sidewalks and retail
Agreed 🙌🏻
No thanks
@@RLang03 why?
Americans don't want to walk and they certainly don't bike.
@@mathisnotforthefaintofheart they will one day
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.
lmao. what a solution
That's what North Jersey is like. Parking lots on top of parking lots.
"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.
8:33
Exactly! I hate how each of these "parking management" companies have their own apps that ask for ridiculous permissions on your phone and require you making another account with another password to remember. And then half the time you still get a parking ticket because some meter maid didn't check the app to see if you've paid for parking. Hard pass. Coins into a meter is the easiest way to do this.
All that sounds like a hassle. Let's get rid of the parking and just put park-and-rides on the outskirts. Imagine what great outdoor spaces would could make with the extra space too, which would be amazing for the people living there. Could even replace the downtown parking garages with more housing, then less people need to drive anyway
You have newer cities like Las Vegas that almost entirely covered in asphalt. The worst part is that it is mandated by code.
Parking is expensive and difficult in a lot of places. Guess it depends on where you are.
And if there’s an event going on
Great video, very engaging
GREAT! Get rid of those ghastly spaces for ineffecienct metal cages.
Honestly. Let them struggle
prepandemic parking in downtown chicago was $40-50 dollars for 12 hours, that isn't exactly struggling.
Hello sir, please am in dear need of your financial assistance, am a Nigerian student who is finding it difficult to see myself through school please sir any help from you will go a long way to help my life God bless you as you get back to me .
IMO enough damage hasn't been done to this industry. We need living spaces for people not cars in our cities.
They paved paradise and put up a parking lot.
Retailers have to keep in mind that people like me don't go to their businesses when it is a requirement to pay money to park my car. It is already super inconvenient to go shopping in a physical store let alone have to pay for it. It's such a shame because I do not want to see physical stores go away but they have to make it more attractive than online shopping and having to spend time and money is a big factor for many.
what if you could walk instead of having to drive there?
Most people still have to pay in some way for shipping by either buying more to meet the minimum purchase requirement, paying for membership like Amazon prime, or out right paying delivery costs. Brick and mortar stores make returns easier. Whereas the influx of Chinese companies in online stores have created returns an expensive or impossible task. Always dragging things out until the time limit for returns pass or having to pay to ship back to China. Either way your still paying.
No cap
@@pj3200 and have to carry all my stuff home in my hands because there are no plastic bags anymore. Hard pass
@@chiquita683 lmao imagine complaining about carrying a bag to the grocery store...a bike basket accomplishes the same goal
*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.
Same here. I avoid downtown like it's the plague.
@@libertarian4323 You're so special.
@@nixonhoover2 Thanks for noticing!
Especially during event like conventions I always ride share
@@libertarian4323At least the infrastructure cost/benefit equation balances downtown. It doesn’t balance at all in suburbs.
You can also say the same about parking spots for truck drivers. They get cited for parking further past a shoulder to do their reset rather than letting them stay there so they can safely drop off their load the following day.
Those "experts" have no idea if there are 700 million or two billion parking spaces in the US?
Parking is poorly tracked in the US. Data are poor quality. So estimates vary widely.
Too much parking, unless it’s a major city downtown area then there isn’t enough. And paid parking sucks just like toll roads and etc. This is an industry I wouldn’t mind dying out.
Too much parking except where needed
More compact parking, less parking for large vehicles.
0:59 This used to be my go to pickup/drop off area at SFO, until they gave it to ride sharing apps.
Expensive, unsightly, takes away from nature, contributes to urban sprawl and hot zones.
the reality is that public transport needs to take over, many cities already need it because traffic is horrible and take a long time to get somewhere like that and there is just not enough space for all those cars, not to mention all the heat they create in the summer, at the same time that parking is just too expensive to be paying for it especially now, they should turn parking spaces into apartment buildings, but not luxury apartments ok, the majority of people are not craping money in a bowl ok we do not need that.
Oh boo hoo parking at Dodger Stadium $30, Universal Studios,. $30, So Fi Stadium $50. Its now cheaper to Uber to the venue and stick it to the parking companies.
That's not sticking it to the parking companies. That's doing exactly what those areas need you to do. They have no space for more parking, so they want customers to start coming in without needing 200 sq. ft. of real estate just to store their possessions/vehicle
Solution: Shut down the parking industry and replace them with housing. Problem solved.
Experts says there are between 700 million and 2 billion parking spots. This tells me these "experts" have no idea how many parking spots there are and they are too embarrassed to say "I don't know".
These spaces aren't in Hudson County,NJ.
the way that whoever wanted this produced owns so many sp+ stock shares
Is it just me or does Marc Baumann from SP+ sound a little like Alan Alda? On a more serious note, is this corporatized approach to parking - which necessitates "monetizing" assets (empty space) and extracting more and more money from consumers - diverting land from more productive uses like building more homes?
The empty parking spots should be rented out to semi trucks it's impossible to find truck parking!
I could care less. if you have ever had to park in New York City or near public transit to get into the city you will know the pain of having to pay a ridiculous amount of money just to park. What I wish was avaialble is a parking app that tells you where you can legally park on the street (specific spaces) based on the current date/time (in New York City the Street Parking Signs are deliberately confusing to maximize the amount of parking tickets the city can issue). The only parking apps I found was ones that are partnered with these private parking lot facilities, they they are getting a kickback to route people to these private py parking lots (I don't need something like that as you can see the signs, or just do a quick google search to find them).
I honestly find it hard to believe that just two parking garage companies generated 8-10 billion dollars in revenue in just a year.
Me as a NY’er : excuse me??
This guy will get fired if he doesn't make the company billions every year. He's your regular car salesman take what he says with a grain of salt. He knows the parking industry will decline the writing was on the wall
It's great that there are a lot of parking spaces. Ask the European counterparts that are dealing with the opposite problem, which is really a problem. Maybe the parking spaces should be added in places that they're needed and removed from places where they arent't.
Fascinating
I'll never understand why they charge you for parking at hospitals - It's bad enough I'm likely going to have to pay a significant amount for my visit because the USELESS health insurance companies are always trying to deny coverage for some stupid reason, but to then twist my arm and require additional payment for parking (sometimes can be +$20) is just plain wrong. Oh and if anything were to happen to your car, don't even think of asking them to view any footage from their elaborate and expensive security camera system unless you want to play "ring around the rosy" -___-
Yes, you probably don’t have good mass transit options or good healthcare options - many other places have both.
Someone actually vandalized the hospital parking meters in protest of that
Parking lots can go to hell
Where you guys living that there’s just abundant parking wherever you go?
Funny how when you go to a concert, parking can cost as much as the concert ticket itself.
A lot oh stadiums don’t own their parking lots, see Nassau Coliseum, UBS and Citi Field.
The good news its relatively easy to repurpose parking.
it sad when a parking spot makes more an hour then many people making a hourly rate
Has CNBC ever been in SF, NYC, or LA?
What's going on with fully automated garages.?
Good riddance 👏! The fees these places charge are ridiculous. 😶
Cities are forced to sprawl because of parking lot requirements. Instead of having businesses and homes close together, the parking lots spread everything out making walking less desirable. They ruin center city's density and remain empty for most of the time until black Friday, the one day a year they may be full
Barely any parking in the UK is free. We also probably have 10% of the amount of parking per car
So if you go to a Walmart type store, there isn't free parking?
@@faywhite7886 Depends on the location, and who owns the car park. If the store owns the car park then it'll be free, but if the local council own it then you pay
@@faywhite7886 Welcome to Europe! Over there in cities one person does shopping quickly and the partner drives the car around the block. Every time shopping is done, the trunk opens, the bags go in and so it continues. Why? Because parking is expensive or not even available. If you drive a fuel efficient car, hybrid or EV, this is the better way. The traffic of course is congested because everyone does it this way but those lefties greenies don't think much beyond their scalp
We really need walkable cities…
parking should be FREE. period.
You can go build it lmao
Death to our parking-for-profit ways sounds good to me. I grew up in a small town and never had to pay for parking. I take a trip up to Chicago to see the museum of science and industry and have to pay $25 to park for 3 hours. It's totally absurd.
There's no other option for many than to drive to a location because of our city layouts and car centric culture. Then you charge them to park after they show up just for the privilege. Like paid parking is easily one of the biggest turn offs for me to go to any brick-and-mortar location than shop online. Trying to recoup cost by making it more inconvenient and expensive to go to your store is shooting yourself in the foot
I mean, depending on whichever small town you're from, you could always take the Metra or South Shore.
They have to add the cost somewhere. Parking is actually really expensive, it's just historically been subsidized by higher sticker prices
Nothing in life is free, you’re paying for those parking spaces in other ways; if anything it is a public subsidy to let people store their public vehicles for free. Doesn’t make any sense to me honestly. Someone has to pave and build and maintain the parking you use for free. So who is doing it?
The Car Centric design is the absurd part
That is the hidden-but-not-so-hidden cost of car centric culture. Do parking facilites pop up like magic for free to use??
I wish we had too much parking here. But no, there’s never enough, and they charge $200 a month just to park at your own work place. Sometimes even your own apartment.
This whole video felt like an ad for S&P parking… not educational like I expected about parking in general and it’s negatives.
We shouldn't build places around cars.
The trucking industry has a serious shortage of parking across the country.
Didn't think there was a surplus of spots for cars. I don't necessarily trust these reported statistics on this either.
They are in surplus but they are poorly managed, so it often doesn’t feel that way.
@unconventionalideas5683 definitely not a surplus of truck parking spots. But i will agree that what is currently available is poorly managed.
This is an advertisement for paid parking and the new revenue stream for the wealthy based off of basic and unavoidable activities of the non wealthy.
13:21 Where is that?
They do not get used because they charge $15 for 15 mins lol.
GOOD now close them and replace them with useful things like housing or metro lines and community centers
I have no idea where you got your data. However, every large city, within America, has majority paid parking. In Denver the majority parking is 16 dollars a day and up. If you're referring to parking for businesses, yes, that parking is free. But the majority of parking lots where individuals work and live are paid lots.
Born and raised in Los Angeles; now 55 but living in a city somewhere north of l.a…. So much better in terms of crowds, and parking always free, can always find spaces, and no such thing as parking garages or parking meters!!!! I moved here in 2006 and over the years have seen it starting to get more populated but I’ll never complain because I was one of those who moved here from ‘down below’ as we call it.
How about moving on to public transport?
I've always wondered what the perfect parking place is. These guys might find it.
Aye, does anyone find it interesting how these "automated" parking structures claim to have no personal at the exit gates, yet there is always one or two staff members standing at the exit gates? lol
Did SP Plus pay for this promo?
Personally, im ditching my car due to high cost and the toxicity of all vehicles.
Anyone know of a small mixed use buildings and a tram system?
I wonder if there is a correlation between the Gen Z decrease in obtaining a drivers license while simultaneously firearms being the lead cause of death among 0-19 year olds in that same time period. When I was a teen we had to attend high school to get your license at 16yr old and take driving courses and having restrictions until you completed the process. Having a car as a teenager kept me in school, gave me freedom of autonomy and also allowed me to have a job and taught me how to be responsible and discipline with my money and paying my own bills. Having a car allowed me also to take trips to the beach and increased my social life. Now kids are isolated and inside the house all day playing video games and not working and having responsibilities.
I am curious if you have a wife and kids because I don’t think the average citizen can just stop owning a car because of it’s toxicity and substitute it out with public transportation or a bicycle. Why doesn’t the government buy the citizens a new electric car with all that money these elected officials make with their insider trading deals or perhaps all the Covid-19 money they received by big pharmaceutical companies to push their 100% safe vaccines into the American citizens that falsely claimed the vaccines stopped transmission of the virus and that they were effective at eradicating Covid-19?
@@scottyanderson7651 No r-tard. EVs take up space just like gasoline powered cars. The solution is more subway systems.
@@scottyanderson7651 Book: Paved Paradise by Henry Grabar
Cars are nice for certain situations, but if shouldn’t be the only convenient option.
We have made the car an absolutely necessity while making walking, biking, and public transit extremely inconvenient. This isn’t by culture or economics but rather by law.
Our policies such as single use zoning, parking requirements, massive highway projects, height restrictions, etc etc push destinations far away from each other that it’s inconvenient to walk . Without things walking distance, public transport is inefficient. Biking is still feasible but only if the infrastructure is there to make it safe from the externalities of being hit by cars.
GOOD! Paying for parking is BS. Cars are expensive enough to drive. Parking should always be FREE and should be considered a cost of doing business. I remember always hating going to this mall in Virginia because I had to PAY to park there so I could go inside and spend MORE money there. It never made sense to me.
when parking tries to shaft you everytime for subpar parking, people will just ride share their way over
Good
An industry headed for technology disruption. Every autonomous car that is shared can remove 6-8 personally owned vehicles from the overall fleet. And one that is charging from solar today? Can turn a healthy profit at less than 20 cents a mile.
Don't know how they came up with these numbers because parking is difficult and expensive in downtown Chicago lol
Time is only true for businessmen, the average worker gets salary each month no matter how much time it takes.
Great
there are so many car parking but very less truck parking
Why is the gap with the estimated parking spaces so wide?
Because of how broadly on-street parking can be defined. If there is a 1 mile stretch of suburban road that allows on-street parking (but is almost never used), do we count it as ~150 spots that could be there? There is a ton of paved space in the US that allows parking, but is rarely used for parking because it isn't necessary
@@mikea5745 This piece seems like actual outlined off the street parking spaces.
Solar + EV charging services. First to figure that out is a multi-billion dollar concern.
Too expensive. When I go to big cities and I park my car at my hotel, why bother driving through downtown where it is ALWAYS busy and then pay for an overpriced Car Parking? I just Uber. Now Uber isn't cheap either but so much more convenient.
Uber is trash next to a subway system.
We need truck parking, semi trucks 🚚 53'parking.
Until people start behaving themselves better on public transport, be it planes or trains, I'll stick to my car. Covid opened my eyes up to cooking at home, walking round my local area, so I don't need public transport for that and my car's cheap to run when I do need to get somewhere (I shop early in the morning to avoid crowds). I get the opportunity to avoid unpleasant people (Karens and Kens of the world) while doing this. As for the Parking "industry", hope they die out...should never have been an industry.
When I was young and poor, I took public transit because I had no other choice. I'm no longer poor, so I don'y use public transit. I don't really miss the smell of urine and vomit emanating from some of my fellow riders.
You should consider moving to the moon
I'm actually a pro public transport but my advocacy is focusing on removing and blacklisting karens and kens in all Public Transportation.
The real solution is to redevelop parking into homes, shopping, parks, nature, …
My university begs to differ. We need MORE.
Destroy ALL parking
And I still cannot find one when I need it.
I will always prefer coins in a meter vs a card.
Which city is shown at 8:22?
And north eastern city
2:11 excuse the hell out of me lol
are you on drugs nbc? parking is not an industry, it's tax revenue for cities
"They paved Paradise and put up a Parking Lot..." (Joni Mitchell singing voice)
The question should be “why car windows always get smashed and goods get stolen in America. Where is the law enforcement”