The cost of employer-provided parking often motivates businesses to find ways to reduce employee parking demand. Both the construction and maintenance of a single parking space represents a long-term financial commitment that many people don’t even notice.
Although estimates vary, the average cost to construct a parking space in a garage is $17,400; a surface lot space costs approximately $1500 to construct. Add annual maintenance costs of $700 and $400 per space, respectively, and the costs really add up.
Another consideration often overlooked is the value of the spaces and lots themselves. Parking lots, particularly surface lots, require substantial property commitments that could otherwise be used for building additional office space, housing, and/or classrooms. Parking garages offer a possible alternative, but that solution is expensive.
Additionally, parking spots occupied by employees reduces the number of available spaces for clients and customers.
Many parking-related costs can be reduced by encouraging employees to travel to work in fewer automobiles. For example, if a 100-employee business reduced single-occupancy travel by 30%, it could potentially save between $100,000 and $600,000 over a five-year period.
To reduce demand, consider implementing programs to encourage commute alternatives such as purchasing transit passes and providing preferential parking. Not only will it save your company money, such programs will also put money back into the pockets of your employees, reduce regional congestion, and improve air quality.