Ten Ways Automated Parking Systems Increase Property Development Profitability

Property and real estate developers are more frequently turning to Automated Parking Systems (APS) to address a broad range of challenges from project feasibility to optimizing profitability. By eliminating the driver and passengers from the car parking process, APS provide numerous physical, financial and societal benefits compared to conventional car parking.

Following are ten benefits property developers identify for using APS in their projects.

Benefit #1 More Profitable Land Use

For a given number of parking spaces, automated parking systems require significantly less area and volume than other parking options. This enables the more profitable use of valuable land for tenants, green space, etc. APS provide property developers a broader range of options from minimizing the area needed for parking to maximizing the number of parking spaces or some optimum point in between the two.

Benefit #2 Parking Optimised for Profitability

The design flexibility of APS allows them to fit in locations or areas where other parking solutions are too large or unfeasible. Such locations are often inside, under or between existing structures, very narrow and deep areas and even irregularly shaped spaces: horizontally, vertically or both. Using otherwise unusable or lower value space for car parking is another way APS help increase profitability.

Benefit #3 Capital Cost

The notion that APS always cost more than multi-story parking garages or car parks is overly simplistic and frequently incorrect. Viewing APS as direct replacements for conventional car parks often ignores the many potential benefits. When developers incorporate them into preliminary designs, the APS substantially smaller size and design flexibility can significantly shift capital cost and project profitability for the better.

Benefit #4 Reduced O&M Costs

Like capital cost comparisons, operation and maintenance costs are highly specific to each application. APS have the advantage of requiring no or minimal lighting, ventilation, fire suppression, monitoring, clean up, staff and security measures in the unoccupied parking area. While most of the O&M costs for APS involve the automated car transport systems, those costs are comparable to commonly used automated industrial storage and retrieval systems.

Benefit #5 Sustainable Building

APS offer numerous advantages over conventional parking when it comes to green space, emissions and carbon footprint reduction, solar access, storm water runoff and more:

• Depending on the number of parking spaces, greenhouse gases (VOCs, CO, NOx, etc.) are reduced 60 to 85% since no driving is required to find spaces and park cars
• Reduced land requirements permit more green space
• Especially in underground or enclosed parking applications, APS can be substantially more energy efficient than conventional parking solutions, The smaller size of an APS minimizes storm water run off and management thereof
• Less excavation depth minimizes potential groundwater impact, APS require much less building material than conventional car parks
• Smaller and shorter, APS minimize obstruction of views and sunlight
• Recycling of high value building materials such as steel.

Benefit #6 Inherent Security

The APS concept inherently provides much higher levels of protection and security for cars, their contents and their drivers. Vandalism and theft are virtually impossible in an APS. Personal security is much higher than in car parks since drivers and passengers are always in well-lighted, highly visible/public entry and exit areas at street level. APS are also an ideal solution for the handicapped since entry and exit bays can readily accommodate specific requirements and building codes.

Benefit #7 Lower Risk & Liability

APS minimize the potential for property damage, theft, personal injury or death. Insurance premiums are often heavily influenced by the probability of accidents or other events occurring. The inherent safety and security of APS greatly reduce the possibility of dents, scratches, other damage and vandalism to cars, theft of property from cars, car theft, robbery, arson, fire, assault, rape, falls and suicide.

Benefit #8 Tax Advantages

APS may offer property developers significant tax advantages in the form of accelerated depreciation compared to car parks or parking garages. Numerous countries permit faster, or accelerated, depreciation rates for equipment based on the notion that equipment value declines at a faster rate in the earlier years of its useful life. Compared to the 25 to 50 year depreciation of buildings such as car parks, large percentages of APS may be eligible for
much higher depreciation rates increasing profitability.

Benefit #9 Faster Construction

Much smaller and highly pre-fabricated structures, APS are typically faster and easier to erect than larger monolithic concrete car parks. In the case of underground installations, there is much less volume to excavate and transport. This leads to reduced construction costs, less interest during construction and a faster start of revenue generation.

Benefit #10 Improved Profitability and Other Factors

Less quantifiable benefits of APS that can improve profitability for developers include:

• Location: - APS make it easier to have parking in locations that command higher fees and are closer to the target area.
• Reduced visual impact: the lower heights and smaller volumes of APS minimize obstruction of views and sunshine that can reduce lease/rental rates.
• Aesthetics: customizable external treatments allow APS to blend in to the surroundings.
• Valet-like parking: the convenience of valet parking usually commands higher parking fees.

While automated parking systems provide property developers a broad array of benefits and new opportunities for car parking, a change in thinking is needed to take advantage of these. The maximum potential benefits of APS can be realized only when APS are incorporated in the preliminary concept stage of a property development project. This enables project and APS profitability to be fully assessed and optimized.

About Skyline Parking AG

Skyline Parking AG designs and supplies the most space-efficient and fastest fully automated parking systems. Skyline’s systems provide high returns while being an environmentally and user-friendly answer to the growing scarcity and cost of urban space, worldwide. The broad range of products, means that Skyline Parking has a solution for virtually any location, problem or requirement.