When you think of commodities, the first things that jump to mind are probably gold, oil, or diamonds, with parking spots unlikely to make an appearance. But why not? Parking is, in fact, quite the commodity. It’s needed by everyone (who drives), often can be hard to come by, and can be quite valuable in instances when demand outpaces supply. In fact, the Wall Street Journal reports that in San Francisco a parking spot can cost $125,000, while in Manhattan, one was for sale for a whopping $1 million dollars.
The Value of Parking
As with any other commodity, the value of parking is determined by the need for it. While a spot in New York may warrant a seven (gasp!) figure price tag, one on the plains of Montana may be perfectly free. The rules behind trading and selling a commodity effectively apply to parking as well: it needs to be well managed, and buyers, in this case parkers, need to desire, require, and trust the commodity for its value to be realized. According to Parking Today, cities often fail to recognize parking as a commodity that is marketable as such and therefore tend to mismanage it as a resource.
Marketing your assets
Just as any other competitive commodity market, parking requires the same attention to local market forces. Marketing your parking spots as commodities can enhance their usage and increase your revenue. Lot owners need to be aware that parkers can choose competing lots, and that price needs to meet demand reflective of that local area. Paying attention to customer needs such as time constraints, competitive pricing, and reliable information regarding parking spot availability is crucial to managing parking as a commodity.
Just Leave it Be
No one would leave millions of dollars worth of oil investments left to manage itself. Leaving your lot to bring parkers in without an effective marketing solution is just as illogical. Parking management solutions, such as Parking Logix Open Space, help you manage the valuable commodity you own. Compiling data on when spaces tend to be full can help you maximize the use of your commodity by letting you know when to charge more for a spot, or when to decrease prices to enhance patronage. Giving people trustworthy data that is always accurate ensures that they know when and where a spot is available and don’t waste valuable time looking for one that isn’t. Good parking management isn’t a luxury. It’s a necessity if you want to elevate your parking spots from mere assets to commodities.
In San Mateo, downtown parking is valued as commodity with parking permits in high demand. Read more here.
Did you know?
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Parking Logix Peaks
Next month, we’ll be exhibiting at the IPI in Nashville, TN. Stop by and find out how our solution can maximize the value of your existing assets!