The Number One Change in the Parking Business

Share:

The Number One Change in the Parking Business

It has to do with finance.  I met with a couple of investment bankers this week and frankly I think they may be on to something. Its a way for virtually any organization to finance a new parking structure. Or get some cash out of an existing one.  Sell your parking facility to someone and cash out.

This will work for cities, colleges, hospitals, and private entities. 

Lets say you are a hospital and need a new garage, but don’t have any funding. Ask for proposals and you will have suitors coming out of the woodwork.  Of course, don’t get greedy, the deal has to work for everyone.

As one supplier of money and expertise told me "Look, if you have a hospital in the middle of a neighborhood and the only user of the garage is the hospital, and you can’t charge doctors, nurses, patients or visitors, then it won’t work. However a central city hospital across the street from a theater complex might be able to get themselves a new garage and make some money, too.

I wouldn’t try to analyze the situation myself, but call in some help.  If you have a going garage and need funds for the new wing on city hall, maybe this is a way to get it. However, you won’t get a very good deal if you try to restrict what the new owners are going to do.  If every time they want to raise rates or try some kind of marketing ploy you interject yourself into the conversation, it won’t work.

I think we are going to be hearing a lot more about this type of creative financing at all levels, public and private. There’s a lot of money out there that wants to be invested. Parking is a good place.

JVH

John Van Horn

John Van Horn

Leave a Reply

Your email address will not be published. Required fields are marked *

Only show results from:

Recent Posts

A Note from a Friend

I received this from John Clancy. Now retired, John worked in the technology side of the industry for decades. I don’t think this needs any

Read More »

Look out the Window

If there is any advice I can give it’s concerning the passing scene. “Look out the window.” Rather than listen to CNN or the New

Read More »

Archives

See all Blog Posts

Send message to



    We use cookies to monitor our website and support our customers. View our Privacy Policy