logo-r.jpg

Increase Revenue and Profits

The Automated Parking System: A Cost-Effective Parking Solution

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.

In the ever-evolving landscape of urban development, the traditional constraints posed by parking space limitations are being transcended by the groundbreaking innovation of our Automated Parking System. This transformative technology not only challenges the conventional norms but also presents a paradigm shift in how we perceive and utilize parking infrastructure.

Unleashing Unlimited Potential:

The core concept behind Robotic Parking Systems lies in our ability to liberate developers from the shackles of space limitations. Unlike conventional parking structures that consume extensive land area, an automated parking system empowers developers to minimize the impact of parking by a staggering 50%. This revolutionary efficiency not only optimizes land usage but also opens up a realm of possibilities for additional revenue streams or alternative uses that enhance the overall value of the property.

Elevating Economic Viability:

As visitors explore the economic model of automated parking system cost on this page, a compelling narrative unfolds. The potential for developers to increase both office and parking space by almost 50% each is showcased. This dual expansion not only addresses the perennial challenge of parking shortages but also unlocks a new dimension of economic viability. More space translates into more revenue-generating opportunities, providing developers with a tangible and strategic advantage in the competitive real estate landscape.

A Glimpse into the Future:

The remainder of this page delves into the intricate details of why our automated parking system stands head and shoulders above conventional parking solutions. From a meticulous analysis of construction and development costs to a comprehensive examination of operational efficiency and long-term savings, each section contributes to the overarching narrative – the future of parking is automated, efficient, and economically advantageous.

Navigate the Future with Us:

Join us on this journey through the realms of innovation, where the conventional limitations of parking are cast aside, and a new era of possibilities emerges. Explore the economic prowess, environmental sustainability, and operational excellence that define Robotic Parking Systems. The content that follows is a testament to the superiority of this automated parking system technology, showcasing how it not only meets but exceeds the expectations of developers, urban planners, and property owners alike.

Embrace the Future Today:

As we unravel the layers of superiority inherent in our automated parking system solutions, it becomes evident that this is more than a technological upgrade – it’s a pivotal shift towards a future where space is maximized, revenue is optimized, and possibilities are limitless. Welcome to a world where parking transcends the ordinary, and the path to progress is driven by innovation. Join us in embracing the future of parking, one where efficiency, economics, and environmental consciousness converge for a truly transformative urban experience.

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.

Development Cost

Conventional Garage

Robotic Parking System

Land (or attributed cost of
area)
$10 Million$10 Million
Construction Costs Turnkey400 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.

Land (or Attributed Cost of Area):

  • Conventional Garage: $10 Million
  • Robotic Parking System: $10 Million

In this category, both the Conventional Garage and Automated Parking System cost are equal, with each requiring a $10 million investment in land or the attributed cost of the area.

Construction Costs – Turnkey:

  • Conventional Garage: 400 spaces at $20,000 = $8 Million
  • Robotic Parking System: 850 spaces at $25,000 = $21.25 Million

The construction costs for the turnkey operation reveal a significant contrast between the two parking solutions. While the Conventional Garage incurs $8 million for 400 spaces, the Automated Parking System investment is $21.25 million for a considerably larger capacity of 850 spaces. This higher initial construction cost for the Robotic Parking System is attributed to its advanced technology and automated infrastructure.

Soft Costs:

  • Conventional Garage: $1 Million
  • Robotic Parking System: $1 Million

Soft costs associated with both parking solutions remain consistent at $1 million. These costs encompass various non-construction expenses such as legal fees, permits, and administrative overhead.

Development Costs (Land + Construction Costs + Soft Costs / # Cars):

  • Conventional Garage: $19 Million / 400 = $47,500/space
  • Robotic Parking System: $32.25 Million / 850 = $37,940/space

The overall development costs per parking space further illuminate the financial distinctions between the two systems. The Conventional Garage requires an investment of $47,500 per space, while the Automated Parking System cost presents a more economical option at $37,940 per space. This cost difference is driven by the higher construction cost but larger capacity of the Robotic Parking System, making it a cost-effective solution on a per-space basis.

Development Costs (% of Total):

  • Conventional Garage: 125% = $47,500 / space
  • Robotic Parking System: 100% = $38,000 / space

Expressing the development costs as a percentage of the total investment per space provides additional insights. The Conventional Garage accounts for 125% of the total cost per space, emphasizing the relatively higher financial commitment. In contrast, the Automated Parking System cost represents 100% of the total cost per space, positioning it as a more financially efficient choice.

In summary, while the Robotic Parking System incurs a higher upfront construction cost due to its advanced technology and larger capacity, it ultimately proves to be a more cost-effective option on a per-space basis, offering potential long-term savings and efficiency gains for developers and urban planners.”

See more on the “real cost of parking” at Real Cost of Parking.

Cost-Effective Advantages of Robotic Parking Systems

In the realm of parking solutions, the financial benefits of opting for a Robotic Parking System over traditional concrete garages are both compelling and multifaceted. One of the primary advantages lies in the realm of development costs, where a Robotic Parking System emerges as a financially savvy choice.

Lower Operational Expenses:

Unlike conventional garages, Robotic Parking Systems eliminate the need for constant human presence and running cars within the facility. Consequently, the requirement for extensive lighting and ventilation is significantly reduced, resulting in lower operational expenses. This translates into substantial savings in terms of utility bills, creating a more economical parking solution and overall lower automated parking system cost.

Reduced Insurance Costs:

With a diminished risk of accidents and incidents within the automated facility, insurance costs are naturally lower compared to traditional garages. The absence of on-site personnel also contributes to a safer environment, further reducing insurance premiums and providing developers with a notable financial advantage.

Streamlined Personnel Expenses:

The operational efficiency of a Robotic Parking System drastically reduces the need for a large workforce to manage and oversee parking operations. This streamlining of personnel requirements not only cuts down labor costs but also ensures a more efficient and reliable parking service, enhancing the overall appeal of the automated parking system and costs to operate.

Optimized Land Usage:

The modular nature of Robotic Parking Systems offers unparalleled flexibility in terms of location. Whether constructed above ground, underground, inside, on top, or beneath a building, these systems can adapt to diverse spatial requirements. Particularly notable is the efficiency of underground applications, where the Robotic Parking System can accommodate the same number of vehicles in half the space required by conventional garages. This revolutionary space optimization can result in substantial savings of up to 50% on excavation costs alone, making it an attractive proposition for developers looking to maximize land usage.

In Conclusion:

The overall automated parking system cost associated with Robotic Parking Systems present a compelling case for developers seeking a financially efficient and technologically advanced alternative to conventional concrete garages. From reduced operational expenses and insurance costs to streamlined personnel requirements and optimized land usage, the advantages are clear. Embracing the future of parking solutions with a Robotic Parking System not only promises economic savings but also positions developments as innovative and environmentally conscious, contributing to a sustainable and forward-thinking urban landscape.

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.)

Read The Garage of the Future Must be Green by Samuel I. Schwartz, P.E.

Click Here for the Full Article

Comparative Analysis of Construction and Development Costs: Conventional Garage vs. Robotic Parking System

Capacity/ Labor Assumptions

Conventional Parking

Robotic Parking System

Capacity892892
Hours of Operation24 / 724 / 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

Have a project? Reach out to us to get a free design.