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Parking Management, Strategies, Evaluation and Planning
<br /> Victoria Transport Policy Institute
<br /> Increasing Office Building Profits and Benefits
<br /> An office building has 100 employees and 120 surface parking spaces,providing one
<br /> space per employee plus 20 visitor spaces. The building earns $1,000,000 annually in
<br /> rent,of which$900,000 is spent on debt servicing and operating expenses, leaving
<br /> $100,000 annual net profit.
<br /> Parking management begins when a nearby restaurant arranges to use 20 spaces for staff
<br /> parking during evenings and weekends for$50 per month per space,providing $12,000
<br /> in additional annual revenue. After subtracting $2,000 for walkway improvements
<br /> between the sites, and additional operating costs,this increases profits 10%. Later a
<br /> nearby church arranges to use 50 parking spaces Sunday mornings for$500 per month,
<br /> providing $6,000 in annual revenue.After subtracting $1,000 for additional operating
<br /> costs,this increases profits by another 5%.Next,a commercial parking operator arranges
<br /> to rent the building's unused parking to general public during evenings and weekends.
<br /> This provides $10,000 in net annual revenue,an additional 10%profit.
<br /> Inspired,the building manager develops a comprehensive management plan to take full
<br /> advantage of the parking facility's value. Rather than giving each employee a reserved
<br /> space, spaces are shared, so 80 spaces can easily serve the 100 employees. A commute
<br /> trip reduction program is implemented with a$40 per month cash-out option,which
<br /> reduces parking requirements by another 20 spaces. As a result, employees only need 60
<br /> parking spaces. The extra 40 parking spaces are leased to nearby businesses for$80 per
<br /> month,providing $32,000 in annual revenue, $9,600 of which is used to fund cash-out
<br /> payments and$2,400 to cover additional costs,leaving$20,000 net profits.
<br /> Because business is growing,the tenant wants additional building space for 30 more
<br /> employees. Purchasing land for another building would cost approximately$1 million,
<br /> and result in two separate work locations, an undesirable arrangement. Instead,the
<br /> building manager stops leasing daytime parking and raises the cash-out rate to $50 per
<br /> month,which causes an additional 10 percentage point reduction in automobile
<br /> commuting. With these management strategies, 87 parking spaces are adequate to serve
<br /> 130 employees plus visitors,leaving the land currently used by 33 parking spaces
<br /> available for a building site. To address concerns that this parking supply may be
<br /> insufficient sometime in the future, a contingency plan is developed which identifies
<br /> what will be done if more parking is needed,which might involve an overflow parking
<br /> plan,providing additional commuter incentives during peak periods,leasing nearly
<br /> parking, or building structured parking if necessary.
<br /> This parking management plan saves $1 million in land costs, a$50,000 annualized
<br /> value. Parking spaces can still be rented on weekends and evenings,bringing in an
<br /> additional$25,000. These parking management strategies increased total building profits
<br /> about 75%, allow a business to locate entirely at one location, and provide parking to
<br /> additional users during off-peak periods. Other benefits include increased income and
<br /> travel options for employees,reduced traffic congestion and air pollution, and reduced
<br /> stormwater runoff.
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