“Our client had faced a once-in-a-lifetime type of obstacle via the Covid-19 pandemic, the effects of which continue to linger in downtown market assets tied to office utilization. Looking at single-use parking assets from multiple angles to create value was essential for not only portfolio stabilization and growth but for the life of the organization”
– Rodrigo Gonzalez, CEO & Managing Partner, DEODATE
OVERVIEW
Over the last four years, one of the largest privately held airport and central business district parking groups in the United States has engaged DEODATE to maximize the value of their portfolio. To best support our client’s $200M+ portfolio of more than 10M square feet of parking assets, DEODATE created a diverse, peripheral use strategy built to support times of high-use and underutilization of their properties.
CHALLENGES
Significant financial impacts of COVID and an associated rise in remote work have been well-documented around office buildings, but many parking-related real estate assets have been equally affected. Owners of parking lots around retail developments have faced similar challenges for years due to continued increases in online shopping trends that have resulted in the closure of large retail spaces and shopping malls.
Even with the challenges listed above, a steady, reliable ROI on parking lot assets is still very much available to owners. They require, however, holistic strategies strong enough to stand up to modern challenges, and capitalizing on forward-thinking, alternative use cases that meet modern needs.
Full-time CRE team isn’t always necessary or cost-effective | Remote-work-driven underutilization |
Need for experienced negotiation in alternative utilization | Lack of short/mid-term parking strategies |
SOLUTION
Every aspect of the commercial real estate market has dramatically changed over the last three years, and parking lot assets are no exception. During DEODATE’s initial client engagement, we completed a thorough analysis of their entire portfolio, a portfolio that spans 10M square feet of parking lots across the West Coast, Midwest, and Southeastern US.
Through this data-backed analysis, and DEODATE’s long history of providing innovative solutions to leading enterprises in every industry (and local and state governments), our team identified several opportunities for our client to maximize the ROI of their parking lot assets, even amidst periods of underutilization. These solutions included:
Acting as a fully-outsourced, cost-effective, fractional CRE team
Negotiation & optimization strategies for greater use/occupancy
Identifying short- and mid-term parking options
Cross-discipline revenue generation, cross-asset parking utilization
Communicating growth narrative in securing asset debt
Alternative solutions, including energy efficiency initiatives, conservation easements & advertising options
This holistic approach has yielded a consistent 25%-35% increase in the value of our client’s portfolio year over year.
ADVANTAGES OF FRACTIONAL REAL ESTATE
Fractional corporate estate teams, such as those offered by DEODATE, provide organizations with cost-effective, specialized real estate expertise on a part-time or project basis. This approach allows companies to access the benefits of a dedicated corporate real estate team without the need for full-time, in-house hires. By outsourcing real estate management, organizations can focus on their core operations and improve efficiency while ensuring that real estate-related decisions align with their overall business objectives.
Parking lot properties rarely, if ever, require the full attention of a dedicated, in-house corporate real estate team. DEODATE has a long history of providing fractional real estate services to parking property owners. These include managing the acquisition of $50M+ in new parking assets for public agencies and designing mid-term income-producing strategies for leading global pharmaceutical companies.
DEODATE leverages a combination of data-backed, innovative strategies and industry expertise to meet the needs of private enterprises, investors, developers, and public agencies alike.
Contact us today to inquire as to how these results were achieved, and how similar, tailored strategies may assist your organization's initiatives.