Parkonomics: Construction and Commissioning

The construction phase is where the vision of a future-proof parking facility truly takes shape, where theoretical plans transform into a tangible, tech-ready structure. This step isn’t merely about pouring concrete and raising steel; it’s a critical juncture for embedding the smart capabilities that will define the modern parking experience and ensure its long-term relevance in an evolving mobility landscape.

Parkonomics-Digital-backbone-RGB.png

The construction phase is where the vision of a future-proof parking facility truly takes shape, where theoretical plans transform into a tangible, tech-ready structure. This step isn’t merely about pouring concrete and raising steel; it’s a critical juncture for embedding the smart capabilities that will define the modern parking experience and ensure its long-term relevance in an evolving mobility landscape.

At its core, this stage involves the meticulous installation of the facility’s central nervous system—a robust network of sensors, cameras, and communication devices that will enable intelligent operations and seamless user interaction. A pivotal element of this smart infrastructure is intelligent lighting.
Although the shift to LED technology has already revolutionized energy efficiency, the true power lies in smart lighting controls. These systems can dynamically adjust light levels, based on occupancy, time of day, and ambient conditions, resulting in a dramatic reduction in energy consumption. More profoundly, they establish a versatile platform for a broader Internet of Things (IoT) network.

The very infrastructure that illuminates the garage can simultaneously support a myriad of sensors, from precise vehicle counters to sophisticated air quality monitors, to provide invaluable operational data. Complementing this abundance of data, robust connectivity is no longer a luxury but an expectation. In our hyperconnected world, reliable Wi-Fi and seamless cellular service are paramount. Installing repeaters and a distributed antenna system during construction guarantees that customers remain connected, simultaneously providing a resilient communications backbone for the facility’s own sophisticated digital systems.

Vendor alignment

The parking access and revenue control systems (PARCS) technology landscape is littered with the remnants of proprietary, walled-garden, mechanical-forward systems with software bolted on as an afterthought that quickly become obsolete, rendering facilities incapable of adapting to new innovations. A key to true future-proofing, therefore, lies in meticulously selecting technology partners who are unequivocally committed to open standards and seamless interoperability.

Whereas mechanical gate arms may or may not be required, Software as a Service (SaaS) systems PARCS providers are the key to a flexible future. This foresight ensures that the initial investment remains viable and adaptable for decades to come, unlike the rigid systems of the past that necessitated costly and disruptive overhauls.

This commitment to open standards manifests in several crucial ways. First, choosing vendors who offer open application programming interfaces (APIs) is paramount. An API acts as a digital bridge, allowing disparate software systems to communicate and exchange data efficiently. Such interchange ensures that a parking management system can effortlessly integrate with a vast ecosystem of third-party applications, ranging from burgeoning mobile payment providers to sophisticated mobility as a service (MaaS) platforms that integrate various transportation options. Similarly, opting for software-driven, upgradable platforms enables facilities to incorporate new features and functionalities through simple updates, thereby circumventing the need to replace expensive hardware every few years.

Beyond individual components, a holistic approach to technology integration is essential. Having all technology contractors—from the PARCS provider to the intelligent lighting controls installer—fully aligned with the facility’s long-term vision is crucial. Doing so necessitates a coordinated effort, often spearheaded by a specialized parking consultant, to ensure that all systems can communicate and work together seamlessly to create a truly unified and future-ready operational environment.

Digital credentialing

The days of paper tickets and cash payments are rapidly drawing to a close. The future of parking access is undeniably digital, contactless, and frictionless. Although a facility might not launch with every one of these advanced capabilities fully implemented, it is imperative that the underlying infrastructure is robust enough to allow their easy adoption as user expectations and technological advancements continue to evolve. This forward-thinking approach ensures long-term operational fluidity and enhances the customer experience.

The smartphone is fast becoming the universal key, and parking facilities are among the things it can now unlock. Mobile applications that enable seamless entry, exit, and payment are quickly transitioning from novelties to industry norms, offering unparalleled convenience. Complementing this advance, license plate recognition technology provides an even more frictionless experience, allowing gates to open automatically for registered users without any physical interaction.

To support these critical systems, the necessary infrastructure—including high-resolution cameras at all entry and exit points, as well as robust network connectivity—must be meticulously planned and installed from the very beginning of construction. Furthermore, the Covid-19 pandemic significantly accelerated the demand for contactless solutions across all facets of daily life.

In the parking realm, this path extends beyond mere contactless payments to encompass touch-free entry and exit processes. Designing for these capabilities, even if they are not fully activated when the facility opens, is a critical component of a truly future-proof strategy, ensuring the garage can adapt to evolving public health concerns and user preferences.

The garage as a dynamic asset

Discussions around the future of parking often center on radical transformations, such as converting garages to alternative uses. This long-term perspective is crucial and merits detailed examination, but the substantial costs associated with such an “insurance policy” often outweigh any benefits.
Although transportation is evolving rapidly, the fundamental need to store vehicles—whether self-driving, electric, or even garbage-powered, as imagined in Back to the Future—will persist. Therefore, the more immediate opportunity lies in reimagining the use of our current and near-future parking assets while allowing for the ongoing evolution of transportation.

A key error made by architects and designers in the 1980s was their failure to anticipate the growth in vehicle size. Driven by the popularity of compact cars after the oil shocks, the cost savings from compact parking spaces proved too appealing to resist. Consequently, the SUVs that gained popularity in subsequent years often occupy two spaces and struggle with tight turns.

Had designers considered the practical uses of pickup trucks in that day, they would have avoided the literal and figurative “cutting of corners” that now impede the functionality of those designs. The issue wasn’t an inability to predict the future but instead a lack of imagination that failed to look beyond fleeting trends and short-sighted cost-cutting measures.

The power of shared parking

Parkonomics-Dynamic-Asse-RGB.png

Technology is unlocking new possibilities for a more dynamic and efficient use of space, and savvy owners are beginning to see their parking facilities not as liabilities but as flexible, revenue-generating assets.

The concept of shared parking—where different uses with complementary demand patterns share a single parking facility—is not new. However, technology has supercharged its potential. In the past, shared parking arrangements were often complex to manage, requiring manual oversight and rigid agreements. Today, sophisticated parking management software can dynamically allocate spaces, manage access for different user groups, and even implement variable pricing based on real-time demand.

This multivalence opens up new possibilities for both single-use and mixed-use developments. An office building’s garage, which sits largely empty on nights and weekends, can now be seamlessly and cost-effectively monetized for evening restaurant traffic or weekend events at nearby venues. In a mixed-use development, a shared parking model can significantly reduce the total number of spaces required, resulting in substantial construction cost savings and reducing the parking footprint to free up land for more profitable uses.

Kevin Bopp specializes in parking innovation, strategic planning, and operational excellence. His extensive experience spans complex facility operations, parking management solutions, and integrating cutting-edge technologies to enhance urban mobility and customer experiences. Kevin is part of ULI’s Urban Revitalization Product Council’s leadership team and serves on the Board for Michigan Parking Association.
Bernard Lee is a seasoned consultant passionate about sustainable development, future mobility, and transportation planning. His experience in urban planning and real estate has focused on financial, market, and planning analyses for a diverse array of clients including real estate owners and developers, municipalities, transit agencies, and universities. Bernard is a member of the ULI Washington Case Study Committee.
Andrew Sachs, CAPP, is an entrepreneur and venture capital investor with deep roots in commercial real estate and parking operations. Andrew owns Harbor Park Garage in Baltimore’s Inner Harbor and leads Gateway Parking Services. An active industry contributor, he serves on multiple boards and committees, including the National Parking Association Parking Consultants Council, the ULI LA Mobility Council, and the IPMI Technology Committee.
Related Content
Members Sign In
Don’t have an account yet? Sign up for a ULI guest account.
Members Sign In
Don’t have an account yet? Sign up for a ULI guest account.
E-Newsletter
This Week in Urban Land
Sign up to get UL articles delivered to your inbox weekly.
Members Get More

With a ULI membership, you’ll stay informed on the most important topics shaping the world of real estate with unlimited access to the award-winning Urban Land magazine.

Learn more about the benefits of membership
Already have an account?