For more than a century, parking garages have existed virtually unchanged: boring, often unsightly, yet largely ignored by the public; tolerated by users, and a steady if unspectacular investment vehicle for owners and operators. Now, however, as technology is rapidly mounting its disruptive assault across the real estate value chain, even the dowdy parking garage is undergoing a radical makeover, as innovators and entrepreneurs employ web-based end-to-end parking connectivity to produce the parking facilities of the 21st Century.
In a newly published white paper, MetaProp NYC highlights how “GarageTech”’s assault on this real estate asset class is rapidly changing every aspect of the business, from development to operations to final valuation.
The report, entitled The Future of Parking, examines how technology is changing these facilities, how they could evolve over the near- and long-term and how this evolution is impacting the economics and investment profile of the modern parking facility. According to Philip Russo, Founding Partner, MetaProp Advisors, the paper is intended to present the clearest picture possible of GarageTech and its effects on parking facility development without making speculative recommendations.
“Experts now believe that the fully connected ‘smart parking garage’ will be ubiquitous within the next 10 years,” said Russo. “The effect on the approximately 40,000 garage and surface parking facilities in the U.S., along with the other international facilities, will come from the traditional car makers such as Audi, Ford, GM and others, but also from technology oriented companies like Apple, Google, Tesla and more, along with some 250-plus GarageTech startups.”
One of those startups is Denver-based Parkifi, a platform that mixes way-finding, data analytics and Internet of Things technologies. Using hardware embedded in parking spots, the service alerts drivers to open spaces. Ryan Sullivan, Parkifi’s CEO & Co-Founder, predicts that in the future we will have the same number of parking spots, but in different locations. “Parking garages will move out of cities. They will be bigger and multi-use, like taxi-pens. There will be more smart garages that are self-aware, meaning they will know the ‘who, when and where’ data of the garage that communicates with marketing channels.”
In analyzing the “smart parking garage,” landscape, MetaProp’s white paper looks at a wide range of technological innovation and disrupters, including “GarageTech” verticals:
The report also examines consumer attitudes toward on-demand and driverless cars, as well as their adoption of smart garages, and what the failure to embrace and invest in such facilities will cost developer/owners now and in the future.