Increased business costs, combined with current political and economic uncertainty, have led many in the industry to look for new and creative ways to boost their revenue. The office sector in particular is focusing on increasing NOI and increasing tenant experiences to offset write-downs and create premium spaces for high paying tenants, and parking facilities offer unique opportunities to enhance Net Operating Income (NOI). Increased business costs, combined with current political and economic uncertainty, have led many in the industry to look for new and creative ways to boost their revenue. Here’s how to increase the NOI of your commercial parking facility:

1. Implement Parking Management Technology

Upgrading your parking facility with the latest in parking management technology can significantly improve both customer experience and your bottom line. Parking management technology goes beyond just a convenient parking app for users but serves as a critical control center for your parking operations, streamlining many of the manual tasks traditionally handled by a parking or property manager. Some key features to look out for include:

• License Plate Recognition (LPR): Streamline the entry and exit process for customers by using LPR technology, which allows for quick and automatic recognition of vehicles, reducing wait times and enhancing customer satisfaction.
• Mobile Payments: Enable customers to pay for their parking via their smartphones, offering convenience and efficiency.
• Centralized Support and Operations:  Parking management technology serves as a centralized location for property teams to view and manage your parking operation all in one place including creating or updating parking types, inventory, or pricing and the ability to distribute passes and tenant access.
• Real-Time Data: Utilize real-time data to optimize operations, from staffing and maintenance to dynamic pricing strategies.

Tenants and visitors will appreciate the seamless user experience and are more likely to return to your parking facility after having a positive experience.

2. Optimize Pricing Strategies

Effective pricing strategies can greatly enhance your revenue:

• Dynamic Pricing: Use parking data to adjust prices based on demand, offering higher rates during peak times and discounts during off-peak hours.
• Subscription Models: Offer monthly or yearly subscription models to regular customers, providing steady income and customer loyalty.
• Event-Based Pricing: Increase rates during nearby events, such as concerts or sports games, to capitalize on higher demand.

3. Enhance Security and Maintenance

A well-maintained and secure parking facility can attract more customers and justify higher pricing:

• Surveillance Systems: Install high-quality surveillance cameras to enhance security and give customers peace of mind.
• Facility Appearance: Keep the facility clean, well-lit, and in good repair to attract more customers and encourage repeat business.
• Reduce Downtime: When a parking system goes down, oftentimes it means opening up the gates and losing revenue.  Having a system that is reliable with multiple fallback options minimizes this loss risk.

4. Improve Marketing and Customer Engagement

Effective marketing can drive more traffic to your parking facility:

• Online Presence: Maintain a strong online presence including presence on mapping sites and reservation platforms like SpotHero and ParkWhiz.
• Partnerships: Partner with local businesses and events to offer parking discounts or packages.
• Customer Rewards: Implement a loyalty program to reward repeat customers and encourage word-of-mouth referrals.

5. Add Additional Services and Amenities

Diversifying your revenue streams can further increase your NOI:

• Electric Vehicle (EV) Charging Stations: Install EV charging stations to attract environmentally conscious customers and generate additional income.
• Valet Services: Offer premium valet services for customers willing to pay extra for convenience.
• Advertising Space: Lease out advertising space within your facility, such as billboards or digital screens, to generate additional revenue.

Properties that switch to Vend’s Digital Parking Platform often see a boost in revenue by up to 30-50% and a reduction in manual operations and costs. As an example, Pacific Crest Real Estate's Park 88 in Bellevue, Washington, increased transient revenue by 82% and decreased parking expenses by 36% after implementing Vend’s technology in October 2022. By implementing these strategies, you can significantly increase the NOI of your commercial parking facility, ensuring its long-term success and profitability.

Schedule a demo today to learn how Vend increases your NOI—quickly.