5 Hidden Costs of Outdated Parking Technology for Commercial Real Estate

January 23, 2024
March 25, 2024

5 Hidden Costs of Outdated Parking Technology for Commercial Real Estate

January 23, 2024
March 25, 2024

In the evolving landscape of commercial real estate, parking facilities often represent a significant yet underleveraged asset. One of the biggest factors holding CREs back from turning this piece of the portfolio into revenue generators is outdated parking management solutions. 

At Vend, we want to work with owners and operators to change that. Smart parking technology provides real estate owners a way to bring meaningful change and digital transformation to this area of the business and can simplify the process for operations. However, many CREs continue to rely on outdated parking technology. In doing so, they are unwittingly taking on higher costs associated with these legacy systems. Clinging to outdated parking technology can, in fact, be more expensive than making the switch to modern solutions. Here's why.

High Operational Costs and Inefficiencies

Traditional parking management systems are typically labor-intensive, requiring personnel for tasks such as ticketing, payment processing, and security monitoring. This reliance on manual operations increases labor costs while also providing a greater risk of human error, which in turn leads to revenue leakage through ticket mismanagement and cash handling discrepancies. Old systems also break down, and long repair times and costs translate into inconveniences for customers and added labor and maintenance costs. 

Automated parking systems streamline these processes, significantly reducing the need for manual intervention. Easy-to-use technology with features such as license plate recognition and digital smart signs eliminates the need for paper tickets and often faulty barcode readers. 

Poor Customer Experience

Today’s consumers expect more than ever, and they want convenience and efficiency. One thing organizations don't want to do is introduce new technology that lowers operational costs at the expense of customer experience. What we've found by talking to customers is that the opposite is true for those using Vend. Advanced technology is helping to improve the overall experience.

The biggest reason is that older systems, with cumbersome entry and exit processes, lack of payment options, and potential for long queues, fail to meet consumer expectations. This can deter patrons from using the facilities. In contrast, automated systems offer a seamless user experience. Vend offers features such as mobile payments, online reservations, license plate recognition technology, and digital smart signs to assist drivers at entry and exit.

Underutilization of Parking Assets

Outdated parking systems lack the sophistication to dynamically manage and optimize parking space utilization. This results in a static approach to pricing and space allocation, which often fails to respond to fluctuating demand, leading to underutilization during off-peak times and potential overflow during peak periods. To solve these issues, Vend offers real-time data analytics that can be used to adjust pricing and manage availability, ensuring maximum occupancy and revenue generation. Without these capabilities, CREs miss out on significant revenue opportunities.

Lack of Actionable Insights

One of the most significant limitations of legacy parking systems is their inability to provide valuable data and insights. Modern parking solutions offer comprehensive analytics that guides property managers to make informed decisions. Create pricing strategies, promotional offers, hiring decisions, and facility improvements based on real-time information about visitor patterns, peak hours, and occupancy. 

This data-driven approach facilitates the optimization of parking assets in alignment with business goals, something that is nearly impossible with older technology.

The Environmental Impact

Sustainability is increasingly becoming a priority for businesses and their customers, but the bulk of the attention around ESG focuses on building-centric innovations such as material usage, HVAC, or water systems. Parking is the next frontier. 

The lack of data for operators or real-time guidance for visitors contributes to inefficiencies that have a direct impact on the environment. Old technology, or no technology at all, results in increased vehicle emissions due to longer parking search times and inefficient use of space, not to mention the waste created by paper tickets. By optimizing parking operations, smart parking systems can reduce these environmental footprints and better align with corporate sustainability goals.

Ready to upgrade your parking facility with a technology designed to increase NOI while also improving customer experience? Contact Vend to learn more.

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