Traditionally boasting constant rates of return, parking lots have proved to be a reliable investment in the past. And these often-overlooked urban spaces are undergoing a renaissance right now that can make them even more profitable – and more advantageous to surrounding communities.
In this article, let’s explore a few benefits of investing in a Florida parking lot – whether it’s a residential surface lot in Tampa, a commercial underground garage in Miami or part of your flex real estate in Orlando.
As real estate investors quickly realize, passive income from properties isn’t all that passive. Rental property ownership requires near-constant repairs, upkeep and management to reduce tenant turnover.
By contrast, parking lot ownership requires relatively little maintenance. Paving projects tend to enjoy a long functional life, and you can enter partnerships with parking lot network operators (more on that below) that will take care of all your hardware, software and service needs.
As with all real estate endeavors, yields vary for a parking lot. Still, compared with residential and commercial rental properties, the yield for a parking lot can be surprisingly high.
It’s important to outline a couple of caveats, though. Parking lots in dense urban areas or those adjoining popular venues (like sports stadiums, event centers and sites of cultural interest) tend to enjoy higher cash returns on investment. It’s also essential that the parking lot is managed well – not just adequately. Tech-forward parking solutions and proactive parking management go a long way.
Creative Partnership Opportunities
A fantastic benefit of investing in a Florida parking lot is that it can be a truly passive source of income. With a parking lot or other open urban space, you can access creative partnership opportunities to re-purpose or revitalize your asset.
Take homegrown company REEF as an example. You can license your parking lot to REEF, which will activate and operate modular businesses (delivery kitchens, micro-warehouses, etc.) in the space. You earn a steady income from the applications and, in return, enjoy a revitalized parking lot that services the community.
Taking Advantage of a Returning Workforce
As the pandemic (slowly) winds down, expect the at-home workforce to return to the cities. Because you can expect to see a surge of returning vehicles on the road, you can also expect a spike in demand for parking solutions.
Bear in mind: over the past two years, consumers have become accustomed to convenient, on-demand services, like fast meal delivery and easy m-commerce. If you want your parking lot to stand out, consider partnering with a parking network to deploy tech-forward parking solutions like mobile apps, LPRs and app-powered valet services. These gestures toward convenience will help attract customers to your lot.
If you’re a real estate investor looking for a creative, reliable way to earn income, look toward the parking lot. And if you have the fortune of already owning a parking lot, take advantage of a returning workforce and evolving parking network to host new, revenue-generating businesses and forward-thinking parking solutions.