Increase Revenue and Profits
Space is not a limitation. Developers can minimize the impact of parking by 50% and gain options for additional revenue or for other uses that benefit the property as a whole.
Take a look at the Economic Model of a Robotic Parking System. In this example, a developer can increase office space as well as parking space by almost 50% each. More space equals more revenue.
Construction / Development Costs Conventional Garage vs Robotic Parking Systems
The chart below shows the construction / development costs for a conventional garage as compared to a Robotic Parking System. Using automated parking, developers increase ROI by lowering the cost per space.
| Construction / Development Cost |
Conventional Garage | Robotic Parking System |
| Land (or attributed cost of area) |
$10 Million | $10 Million |
| Construction Costs Turnkey | 400 spaces at $20,000 = $8 Million |
850 spaces at $25,000 = $21.25 Million |
| Soft Costs | $1 Million | $1 Million |
| Development Costs (Land + Construction Costs + Soft Costs / # Cars) |
$19 Million/400 = $47,500/space 125% = $47,500 / space |
$32.25 Million/850 = $37,940/space 100% = $38,000 / space |
This formula applies to almost any urban real estate with land cost greater than $100 / sq foot or $1100 / sq. meter.
See more on the “real cost of parking” at Real Cost of Parking
Lower Development Costs
Overall development costs for a Robotic Parking System can be significantly lower than for a conventional garage. Since there are no people or running cars inside the garage, there are lower lighting and ventilation requirements. Lower insurance costs, lower personnel expenses and smaller land area required and more – all add up to increased savings.
The modular Robotic Parking System can be built above ground, underground, inside a building, on top of a building or under a building. Underground applications are particularly well suited to the Robotic Parking System. Because only half the space is needed for the same amount of
parking as conventional garages, developers can save as much as 50% on the excavation alone.
Comparison of Operating Costs of Conventional vs Automated Parking Garage
Samuel I. Schwartz, P.E. in his article The Garage of the Future Must be Green compared the operating and captial costs of a conventional garage versus an automated parking facility for a proposed 892 car garage in Manhattan, New York.
In the article Mr. Schwartz concluded that the operating costs for a conventional garage are considerably higher with greater needs for maintenance, security, cleaning, snow and salt removal. He stated, “In addition, the useful life of a conventional car deck is about 20 years. The earliest European systems (automated parking garages) show little or no wear after about 15 years. These steel structures probably have twice the life of conventional garages.”
In fact, one of the first mechanical systems built by Krupp in Munich, Germany for the Deutsche Bank is still in operation since 1956 – after more than half a century!
“When all factors are considered, the cost of operating an automated garage is less than half (- 55%) that of a conventional garage. In this particular case an operator can save over $1.1 million / year with automated parking. In the current real estate climate, this is equivalent to a
capital cost savings of over $15 million.,” Schwartz said.
Below is the chart of operations and capital costs compiled by Mr. Schwartz. (Source: The Garage of the Future Must be Green, in Parking, the National Parking Association’s magazine.)
Capacity/ Labor Assumptions |
Conventional Parking |
Robotic Parking System |
| Capacity | 892 | 892 |
| Hours of Operation | 24 / 7 | 24 / 7 |
Expenses |
||
| Payroll & Benefits | $850,000 (1) | $145,000 |
| Insurance Expenses | $95,000 | $50,000 |
| Utilities Expenses | $165,000 | $200,000 |
| Repairs & Maintenance | $145,000 | $50,000 |
| Bank Fee Expense | $100,000 | $100,000 |
| Marketing Expense | $20,000 | $20,000 |
| Support Services Expense | $75,000 (2) | $35,000 |
| Other Operating Expenses | $150,000 (3) | $75,000 |
| Subtotal Operating Expenses | $1,600,000 | $675,000 |
| Real Estate Taxes Expense | $150,000 | $150,000 |
| Subtotal Non-Operating Expenses | $150,000 | $150,000 |
Total Expenses |
$1,750,000 | $825,000 |
Capital Costs |
||
| Security Camera / DVR System | $30,000 | $30,000 |
| Capital Account | $240,000 (4) | $60,000 |
Total Capital Costs |
$270,000 | $90,000 |
Grand Total |
$2,020,000 | $915,000 |
When you look at all the factors, a Robotic Parking System can help you increase revenues on your project.
(1) Labor Schedule
(2) Includes security, legal fees and audit fees
(3) Includes license/permit fees, uniforms, office supplies, claims, etc.
(4) Conventional Garage: 30% of garage repaired after 10 years at $50/sf
