#United States #Lehi #Neighbor.com #Multifamily #Parking Revenue

Untapped Revenue in Multifamily Real Estate

Recent findings by Neighbor have unveiled a significant gap in revenue optimization for multifamily property owners and operators, particularly regarding parking space pricing. According to the Multifamily Parking Intelligence Report, these property owners are potentially leaving billions of dollars in undeveloped income on the table due to suboptimal pricing for parking. This extensive report incorporates the most comprehensive dataset of multifamily parking prices ever gathered, sourced from a survey of hundreds of multifamily properties across ten major markets in the United States.

Understanding the Data

The report highlights a stark realization: in eight out of ten markets analyzed, parking spaces are systematically offered at rates far below their actual market value. This gross underpricing becomes a critical issue in a landscape where multifamily properties face tremendous pressures from record-setting construction and rising interest rates, which collectively threaten to reduce rents and overall profitability.

Joseph Woodbury, CEO of Neighbor, stated, "The multifamily sector is under immense pressure. In a world where record new construction threatens to drive down rents and high interest rates depress yields, operators must rethink their strategies. Ancillary income, like optimized parking revenue, is no longer optional—it's essential." He emphasizes that beyond correcting pricing mistakes, diversifying income by renting parking spaces to non-residents presents another massive opportunity for revenue generation, allowing property owners to increase their Net Operating Income (NOI) without imposing additional rent hikes on residents.

Key Insights from the Report

Several critical findings emerged from the Multifamily Parking Intelligence Report:
1. Missed Revenue Opportunities: On average, properties surveyed are losing about $100,000 annually due to underselling parking spaces.
2. Inconsistent Pricing Strategies: Notably, the research uncovered that parking rates could differ by as much as 300% within the same neighborhood, showcasing a dire need for a structured pricing strategy.
3. Demand from Non-residents: There is a burgeoning market for renting vacant parking spaces to non-residents, which could not only serve as an additional income stream but also attract new apartment leads.

Woodbury further expounded on the concept of parking optimization, stating that it isn't solely about increasing rates but determining the most accurate pricing based on location and resident satisfaction. He notes, "By using hyperlocal data and focusing on resident satisfaction, property owners can balance profitability with tenant retention."

The Future of Multifamily Parking Revenue

The report was prepared with insights from industry experts, and it aims to provide actionable recommendations for multifamily property owners looking to enhance their parking revenues and overall asset performance as they move into 2025. As the multifamily sector continues to navigate competitive pressures and economic fluctuations, implementing data-driven parking strategies could prove pivotal in boosting revenue streams and sustaining tenant satisfaction.

About Neighbor

Neighbor.com has emerged as the leading peer-to-peer marketplace for monthly parking and self-storage since its launch in 2017. Backed by more than $75 million in funding from reputable investors, including Andreessen Horowitz and Fifth Wall, Neighbor provides property owners with the necessary framework and tools to tap into new revenue opportunities.