For a long time, the real estate sector was considered a traditional industry whose modernization was a major hurdle. This has changed drastically in recent years. In particular, societal changes and demographic changes as well as urban growth and the digitization of the industry are trends pointing the way for development, as KPMG analyzed. In particular, 90 percent of respondents to a study by EY and the ZIA see the digitization and automation of processes as important measures for securing their existence. The respondents see the greatest potential for digitization in the area of property management in particular.
While other areas of property management have already been optimized through digitization, the potential of digital control and management of parking spaces is often overlooked. Yet digitizing parking management is a quick and easy way to reduce parking costs and increase property value. Find out here how this can best be achieved.
Relevance of Infrastructure for Real Estate
The proportion of city dwellers in Germany has risen by 3.33 percent in the last 20 years, and more than 75 percent of Germans currently live in cities. As a result, there is a great demand for good connections for private use, but also for businesses. Here, not only a good public transport connection is relevant, but also sufficient parking space for the increasing number of cars per inhabitant. Mobility hubs that enable a seamless transition from car to public transport, bike or scooter are ideal. Solution approaches and systems that efficiently solve mobility and parking problems, such as well-designed parking facilities, increase the attractiveness of real estate and the surrounding area, thus raising their market value. This is because property owners and managers of traditionally managed parking areas are confronted with a number of challenges and constraints that are time-consuming and costly.
Challenges for Property Owners and Managers in Parking Management
High Maintenance Costs
When barriers and the associated ticket vending machines are installed in parking areas, they often need to be maintained and repaired. This means system downtime for operators, for example, due to defective parking barriers. During the repair work, no revenue is generated, resulting in a corresponding loss of sales and a low quality of service to the users of the parking areas. In addition, frequent work on the equipment reflects badly on the parking area and the property, as the parking experience is disrupted by noise and a messy environment.
Particularly in shopping centers, but also in hotels and guesthouses or at train stations and airports, the problem of illegal parking arises. People park in the free parking lot of a shopping center, but do not visit the stores located there, but instead take advantage of other shopping offers nearby, visit a friend or use the parking lot as a P+R to take the nearby public transport. Operators thus miss out on a considerable amount of revenue. In addition, parking spaces are occupied in this way and the available parking space for shopping and revenue-generating visitors is limited, which leads to a loss of revenue for the shopping center and the stores located there.
Many operators are under intense pressure to reduce costs in order to maintain or increase profitability. However, system failures and high maintenance costs make this particularly difficult. Every cent counts. That's why all revenue streams are closely optimized. Inefficient systems and frequent repairs significantly reduce parking profitability.
Management of Different Parking Conditions
In mixed-use properties, shopping centers, airports, and train stations, several groups of customers, such as residents, customers of stores, employees of an office, and gym visitors, usually use one and the same parking area. For each of these groups, there are different rates, all of which need to be managed. Managing the conditions, as well as long-term parkers and discounted tickets, is a major parking management burden and is associated with high costs and sources of error, both of which reduce profitability. Ideally, the resources spent on administration are used for other, more important activities.
Especially in buildings with a high frequency of traffic and a high volume of traffic at peak times, barriers and ticket machines at entrances and exits impede a smooth flow of traffic. Backups and chaos are unpleasant consequences. If guests have to spend such a long time in the car and lose valuable time on their way, this also has a negative impact on customer satisfaction and the image of the hospital, hotel, airport, train station, or shopping center.
Solution: Digital Parking Management for Real Estate
High maintenance costs, low profitability, and many different conditions are just some of the challenges the real estate industry faces when it comes to managing parking spaces. A digitized parking management concept can overcome these challenges. Not only can profitability be increased, but also the value of the real estate.
The digitization of parking management makes it possible to implement and automate more efficient processes and thus optimize parking areas to the highest degree. Many new solutions in this area are based on ANPR technology, in which vehicle license plates are automatically scanned upon entry and exit. These are recorded in compliance with data protection regulations and efficiently managed via integrated software. If additional processes are automated, digital and centralized management, analysis, control, and monitoring of all parking areas is possible, which optimizes profitability. In addition, providers usually also provide other modularly expandable functions. Peter Park, for example, makes it possible to manage the maximum parking duration, assign parking permits and set individual prices for different visitor groups. All parking management processes run on a modular upgradeable platform, which is particularly advantageous when integrating smart mobility concepts in inner-city projects. Some providers such as Peter Park also offer tracking of parking violations. This outsourcing reduces the high internal effort of tracking for operators.
Advantages of Digitizing Parking Processes and Management
Low Acquisition and Maintenance Costs
The components of an ANPR system, such as cameras or payment machines, are inexpensive to purchase, and setting up the customized software takes very little time. In addition, the new system reduces long-term costs for maintenance, repairs, and downtime due to defective barriers and ticket vending machines, as ANPR technology eliminates the need for barriers and tickets. In addition, the barrierless system eliminates the need for 24/7 emergency service for barrier failure, which is an additional cost saving. This reduction in costs leads to higher profitability and, due to the uncomplicated system and seamless parking process, a higher quality of service.
Parking areas are managed much more efficiently by the software than before, and the quick and easy viewing of all data enables analyses and revenue forecasts to be prepared with little effort on the part of employees and operators. In addition, if the follow-up of parking violations is outsourced to an external provider, this also saves costs and personnel while creating more capacity for other areas.
In particular, the function of different pricing for different customer groups makes it possible to increase the profitability of the parking areas. This is made possible by the fact that prices are coordinated and implemented individually in the software. In addition, the system optimizes parking space management, which leads to greater profitability through efficiency. Another optional source that increases revenue is the reliable tracking of parking violations. While external providers reduce costs and manpower, revenue is simultaneously increased through regular and permanent follow-up. One aspect of maximizing profitability that should not be neglected is the reduction of costs for maintenance, repair, and downtime caused by barriers or ticket vending machines since both components are no longer needed with digital parking management.
Increase in the Value of Real Estate
Last but not least, there is one crucial factor in the real estate industry that must not be forgotten: maintaining and increasing the value of the property. With the help of digital parking management, properties are enhanced through simple and efficient parking and management. The attractiveness for guests, residents, and visitors is also increased by fast and customer-friendly parking, which leads to higher satisfaction and more and more pleasant visits. Likewise, the image of the respective property is improved, they appear modern, sustainable, and very customer friendly. Also, the positive image can thus affect the value and increase it.
Digital parking management helps property owners and managers to increase the value and attractiveness of their properties, improve their profitability and make visitors more satisfied. But real estate contributes to much more than customer satisfaction with its digitalization. They are an important part of the urban infrastructure and can contribute to a more sustainable future by slowly becoming mobility hubs with the help of digital parking management. With their responsibility and the appropriate changes, a step can be taken in the right direction.
Peter Park is a digital parking system that eliminates the need for parking tickets, barriers, and parking discs. Peter Park System GmbH transforms parking lots into mobility hubs by providing parking lot operators and municipalities with automatic license plate recognition and cloud-based management software. The system from Munich was launched in 2019 and is already available in Germany and Austria.