Flexible Added Income From A Retail Lot
Property owners & managers: do you have a retail parking lot in your portfolio? If so, check out this case study on how ParqEx’s parking solutions create flexible added income from a retail lot.
ParqEx’s client, a New York-based real estate investor and operator, owns a mixed-use commercial building. This retail building has an open surface lot right in the thick of Chicago’s trendy West Loop neighborhood. There is certainly a demand for parking as the West Loop is home to hundreds of restaurants, shops, commercial and residential buildings. This parking lot certainly had the potential to make additional flexible income.
When 112 N May was purchased back in 2015, the new owners wanted to completely renovate the building and fill it with new tenants to be on trend with the development occurring in the neighborhood. But, like all construction and renovation, the process would surely take some time.
This property also had a lot with 26 parking spots sitting vacant. Property ownership understood there was an opportunity to make additional income from these spaces while their building was under construction. Therefore, they were looking for a flexible parking solution that would bring in revenue, not lock them into a long-term lease, and allow them to use their lot for construction staging as needed.
Furthermore, as property ownership is based out of New York, they did not have any full-time staff on-site to help manage the parking situation. Therefore, they needed a solution to handle all parking management, customer support, and enforcement if required.
ParqEx needed to propose a flexible solution, enforce unauthorized vehicles, and provide an easy booking system for parkers. The best solution for 112 N May was implementing our Marketplace and Enforcer technology.
The owners reached out to ParqEx to place their surface parking lot onto ParqEx’s Marketplace. This platform helps owners offer parking spots to all transient renters looking for parking in the city. It also helps facilitate the rental process of the parking spots from beginning to end.
After the spots were listed, ParqEx used traditional and digital marketing tactics to drive traffic to the 26 parking spaces. Despite ongoing construction, large banners and marketing signage helped raise awareness that parking was available. As the property owners did not want to be involved with the day-to-day operations, we covered that. The ParqEx Customer Support team handled any inquiry or issue that happened on-site. In addition, the ParqEx Enforcer solution was used alongside a towing company to ensure only authorized renters were parking in the spaces.
Due to ParqEx’s marketing signage, direct contact with local businesses, and digital advertising efforts, 112 N May Street’s parking lot generated $72k in added income.
ParqEx’s parking solutions delivered added income to the property owners without local effort needed on their part. Additionally, ParqEx was able to deliver an adaptable solution for construction crews. ParqEx provided these 26 parking spots to the community with minimal disruption during construction. Finally, once the building was fully leased in April 2018, the property owners quickly transitioned these 26 spots from transient external renters to their internal tenants.
ParqEx provided $72k in added income, two seamless transitions, and zero management effort by the end of renovations.
ParqEx is a technology platform that unlocks the hidden value sitting idle in privately-owned parking spaces. Similar to this NY-based real estate owners property in Chicago, with ParqEx, property owners and managers can increase income, simplify management, and provide a convenient way to book parking downtown.