Has anyone explored standalone parking structures?

Question

Has anyone explored standalone parking structures—mechanical, semi-automated, automated, or rack-and-rail? We’re looking into how these systems maximize space and efficiency, especially in high-demand areas. Curious if anyone has had success leasing or selling them, particularly under a triple net (NNN) lease. Worth the investment or too niche?

Danny Simard · Answer

I've managed a few parking facilities before, and the majority of the properties I've managed have parking. In general, parking is one of those things that is not exactly fun to deal with, but it makes a ton of money. In my opinion, it's at the far end of the un-sexy-but-profitable scale. You do need to partner with a good operator, and there's plenty of mediocre ones out there.

Since you mentioned leasing, you can monetize garages primarily two ways: 1) management agreement. This is where you hire a parking operator to do the main parking operations, they send you revenue less their management fee each month. 2) lease. This is what it sounds like, you lease the garage to a parking operator. They pay you rent, and they operate a parking business.

Ronald Rohde · Answer

paid parking is definitely a niche, Kevin Bupp buys these. We do truck parking, similar concept.

Henry Clark · Answer

OP.  My brother who moved to Italy and I looked at this over there for a while.  Have not moved forward since he is still in the process of settling.  The key points we ran into, without getting too far into the weeds:

1.  We looked at both single ramp systems where you drive up to the second floor and also multistory.  The single ramp system we looked at is a temporary structure that is configurable.  You can also leave in place. There is one manufacturer in North America, but they tend to lease out and not sale these configurable systems.

2.  Niche- to me it is a Niche product from both location/market and also prospective buyers.  There has to be an existing reason.  In Italy, they just don't have the parking space normally.  But normal Italians can't afford to pay the figures you would need.  And then they really don't have it during Tourist season.  So, your niche demand has to be significant enough to warrant the investment.

3.  Niche buyers- I don't think you will find any buyers until you have proven it a success for 2 or 3 years.  Even though this is a simple concept, I don't believe people can get their heads around the Market.  They would have to see your financials to understand the market.  By then why sale.

4.  As far as the automated systems you're talking about.  Google high end parking.  Your demand is going to be sports cars, high end vehicles, etc.  Where the owner doesn't have enough storage space, so it won't be short-term parking.  High end customers will require Concierge services.  So more of a hands-on business than a straightforward lease.

We haven't put any money down or invested, thus take the above with a grain of salt.

Has anyone explored standalone parking structures?

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