Many companies have been managing their office parking the same way for years. They have a limited number of spaces which are allocated based on seniority. It’s been working so far — or has it?
We decided to look at the true cost of inefficient office parking. All estimates are based on a company of 250 based in Dublin City Centre with 50 parking spots.
Real Estate Cost
Parking spaces don’t come cheaply. The average cost of a parking space in Dublin city centre according to the HWBC Market Outlook comes in at €4,000. Each parking space will be assigned to one individual staff member. The total parking spend for the 50 spaces comes in at €200,000 a year.
This is only the tip of the iceberg.
The spaces are only used five days a week.
“Let’s estimate that each parking space is empty on average one day a week. Parking permit holders are away from the office with holidays, illness or work from home.”
Your company would be paying €40,000 a year simply for empty parking spaces. With automated parking management software, unused reserved spaces are automatically released back into the pool, eliminating this waste entirely.
Employee Retention Costs
According to Adare Human Resource Management the average staff turnover is at 11%. This means that in a company of 250 people, 28 people will leave this year.
“According to research by consulting firm Robert Half, up to 23 percent of workers quit jobs because of a bad commute.”
That means 6 people will leave the company this year due to issues with their commute.
With over 60% of people in Ireland driving to work, let’s estimate 3 of these departures are because of no parking.
The average cost of replacing a staff member is €13,100. So the company will spend €39,300 replacing staff members who left because of a lack of parking.
Work off the assumption that you have staff actively looking to leave because of parking.
Administrative Cost
HR staff are busy people. On average they spend 30% of their time meeting with employees and performing basic admin & operational tasks.
Let’s say that 10% of this time is spent with parking administration, complaints and queries. That would be 3% of your total time or 5 to 6 hours a month. Doesn’t sound like a lot but it all adds up.
The average company has 1.4 HR staff to every 100 employees. Meaning your company has 3.5 HR staff. These staff earn an average of €48,000 a year according to Payscale.com. With a total HR wage bill of €168,000. You can expect that you’re spending €5,040 a year on parking management.
Environmental Cost
According to leading parking academic Donald Shoup the average person drives around for half a mile (800m) looking for somewhere to park. We’ve already established 60% of staff drive to work on average.
So every day 150 of your staff take their car. 50 of them have assigned space.
“Another 100 employees are racking up 80km a day looking for somewhere to park around your office.”
Based on average car emissions, you are talking about adding an additional 150,000 lbs (roughly 68 tonnes) to your company’s carbon footprint. This is the equivalent of 2,000 trees or in carbon offsets around €1,100.
Total Costs
Parking inefficiency costs a company of 250 employees & 50 spaces an estimated €85,440 or €1,708 per space. That’s a whopping figure.
“The good news is that it’s not rocket science to start managing your space a little cleverer. Wayleadr allows you to automate the management of your employee parking.”
Ensure maximum occupancy, optimize employee satisfaction, reduce administrative burden and decrease your employees’ carbon footprint with Wayleadr.
Looking for some real-life examples? Check out how companies like Colliers International, Version 1 & Ayre Chamberlain Gaunt have saved on parking.
Parking causing issues? Join industry leaders from companies like Sanofi, Indeed.com & CBRE, schedule a demo with Wayleadr.com today and solve your parking problems in the click of a button.
Once you understand the costs, the next step is fixing them. Our guide to 4 simple solutions for parking shortages covers the most effective approaches.
For a comprehensive treatment of every parking problem and its solution, see our complete guide to solving company parking problems.
Frequently Asked Questions
What are the hidden costs of office parking?
Overflow lot leases ($100-400K/year), facilities team admin time (10+ hours/week), employee productivity lost to parking searches (15-30 min/day), and deferred maintenance on underused infrastructure.
How much do companies spend on unnecessary parking?
The average overflow lease costs $200-400K annually. Companies with dynamic allocation frequently discover they can cancel these entirely because their existing lots have 20-30% untapped capacity.
Can parking management reduce real estate costs?
Yes. Utilization data reveals which lots or levels are underused, enabling lease consolidation or subletting. Some companies defer planned parking construction ($20-40K per space) by optimizing existing inventory.
