With interest rates remaining high amidst continuing market uncertainty, real estate owners are under pressure to squeeze as much value as possible from their existing assets.
Oftentimes an operational afterthought, parking lots and garages are potential goldmines sitting at the heart of many portfolios. By leveraging cutting-edge tech and fundamentally rethinking the role of parking as part of a broader asset strategy, real estate owners have the opportunity to thrive in a challenging market. TRD sat down with the team at AirGarage to learn how the tech-first parking management company is leading the charge, helping owners across 40 states modernize their parking operations, secure long-term asset value, and grow net operating income.
Driving Existing Asset Yield
Since the post-COVID landscape has left many struggling to regain pre-pandemic revenue levels, the need for efficient asset optimization has never been greater. Jonathon Barkl, Scott Fitsimones and Chelsea Border, co-founders of AirGarage, identified a significant gap in the market.
“Most parking operators have been around forever and are old school, traditional,” says CEO Barkl. “They are typically not using technology, or if they are, they are outsourcing it and reselling it to the property owner and marking it up.”
AirGarage provides a comprehensive solution to this challenge. By integrating advanced technologies, like dynamic pricing and license plate recognition, they boost net operating income of parking assets.
“Our in-house license plate reading cameras were specifically designed for parking assets, making them more cost effective and accurate,” says CTO Fitsimones, who describes how the data collected enables owners to understand driver behavior and optimize occupancy. “This data informs everything, from real time occupancy and pricing strategies to enforcement.”
AirGarage offers the same basics that most traditional parking operators provide, such as local on-site operations like sweeping, cleaning, and enforcement staff. In addition to the basics required to operate a parking garage, their system is built on a foundation of technology and data that allows AirGarage to continually improve and optimize operations.https://www.airgarage.com/case-studies/the-yard
“Each asset is unique and needs a custom solution,” says Barkl. “Our goal is to be a proactive and holistic partner, working to create value for asset owners.”
The Power of Proactive Parking Management
Dave Holmes, who owns a surface lot in Baltimore, MD, saw an impressive 19.5% revenue lift after shifting from a legacy operator with gate equipment to AirGarage.
“The camera system is making things easier for drivers who use this lot by automatically checking them in and out,” says Holmes. “At any given second, I can see the amount of money I’ll get at the end of the month in real time.”
This “magical experience,” as Holmes describes it, is made possible by AirGarage’s advanced dynamic pricing model, which operates in real time based on the actual occupancy of the facility.
“We don’t stick a finger to the wind and hope that the pricing is right,” says Barkl. “Instead, we run experiments with varying rates to measure the impact on revenue, all while monitoring the driver experience to make sure pricing is competitive enough to keep drivers coming back again and again.”
AirGarage takes a data-driven approach to every feature of their solution. They have implemented direct integrations with parking aggregators like Spothero and ParkWhiz, and use these platforms to bring more drivers to the lots and garages owned by their customers. Using real-time occupancy data, they can dial up marketing efforts as needed, and throttle down as lots fill, all of which is made possible by their advanced camera tech.
“We built our own license plate reading cameras in-house for maximum accuracy and greater affordability,” explains Fitsimones. “These infrared lasers, mounted in the lane, trigger the camera to take photos rather than relying on a single camera and computer vision, significantly increasing accuracy.”
This technology not only provides valuable occupancy data but also helps manage the mix of hourly and monthly parkers, optimizing space utilization. The Buccini Pollin Group, which manages mixed-use office garages in Wilmington, DE, also experienced significant improvements after partnering with AirGarage.
“The prior technologies were slow to read the license plate and then trigger the gate to open,” explains Rob Buccini, President of the Buccini Pollin Group.
This frequently resulted in backups at the gate, frustrating parkers and sometimes even leading to gate damage, as it was also very slow to move. The cost to replace or fix a gate, along with the associated downtime, became a problem for guest experience that also meant revenue was slipping through the cracks.
Though initially hesitant to completely remove gates across their properties, Buccini now laughs, “I was wrong.” After shifting to gateless technology, they were able to avoid costs associated with repairs and replacements, while improving traffic flow and providing a more seamless experience to parkers. The new system also addressed other critical issues, such as overdue payments and inaccurate driver identification. The result has been a 20-30% increase in NOI portfolio-wide.
“This now is one of the biggest selling features that we have in our parking garage portfolio,” says Buccini.
Capitalizing on Dynamic Revenue Streams
The traditional view of parking as a static, passive space is an outdated one. In the hands of a strategic owner, parking becomes a dynamic asset capable of generating additional revenue streams. Identifying additional opportunities beyond parking, AirGarage is a “technology company that understands how to optimize urban space,” explains Barkl. “We help owners prepare for long-term trends, such as the potential for alternative uses of parking spaces.”
This perspective opens up a world of possibilities, leveraging valuable urban space for new earnings. “Food truck parks, car rentals, mobile services like grooming, farmers markets,” Barkl offers. “Let’s reuse the space and make it even more valuable.”
For smart owners, modernizing parking with AirGarage is not just an option—it’s a strategic imperative that contributes directly to their bottom line. Visit the AirGarage website to learn more.