Take a look around town, preferably from the top floor of an office tower, and something becomes markedly clear down below: Parking decks aren't as full as they used to be.
That's good news for those looking for a parking spot. But not so great for AAA Parking and its competitors. The recession means Atlanta-born parking giant AAA is punching fewer tickets, especially at hotel parking decks, where room vacancies translate to empty parking spaces.
Until something like the recent partial collapse of a Midtown parking deck, parking never gets much attention because of its mundane nature. But it's a good gauge for a region's economic health. And in a place like metro Atlanta, replete with parking decks and surface lots, parking is a good economic indicator.
AAA Parking alone manages about 85,000 parking spots in metro Atlanta.
"Atlanta's taking a pretty good hit for hotel occupancy and that affects our business as well," said Eric Garrison, San Antonio-based marketing director for AAA.
Monthly parking, which is mostly filled by workers, hasn't been as hard-hit as hotel parking, which is off "significantly," he said. Metro Atlanta had a 53.3 percent hotel occupancy rate during the first half of this year, according to Mark Woodworth, president of PKF Hospitality Research, which tracks the hotel industry.
"That's very low," Woodworth said. During the same period a year ago, occupancy stood at 62.4 percent. Historically, metro Atlanta hotels have had a 64.4 percent occupancy, Woodworth noted.
Hotels account for a quarter of the AAA's overall properties —- 50 of its 200 facilities nationwide. But those hotels account for 60 percent of the company's revenues. Consequently, AAA's overall revenues are down 15 percent and the company has responded with layoffs of its own.
AAA, one of the largest parking management companies in the country, was founded in Atlanta in 1956 and acquired by real estate and development firm Selig Enterprises in 1981. Metro Atlanta accounts for about half of AAA's business. The company manages a variety of parking properties including hospitals, hotels, arenas, self-parking and facilities with valet service.
"No doubt, the economy's affected our business," Garrison said. The company has offset the drop in revenue by picking up more properties to manage.
But the recession hasn't persuaded parking garage owners or managers to significantly changes their rates. A study done last month on parking rates worldwide found that parking rates are holding steady. Few cities have seen a "significant pullback in parking rates," according to Colliers International's 2009 Parking Rate Survey. The survey tracks 64 North American markets.
The survey noted some changes in daily and monthly parking rates in this country during the last year. Daily rates rose 1.2 percent or 18 cents; monthly rates were off 0.9 percent or $1.47. The survey attributed the drop in monthly rates to the "substantial decline in office occupancies, which tends to push monthly park rates lower."
Along with layoffs and the drop-off in hotel business, other economic factors also have affected the parking business in metro Atlanta, Garrison said. Spikes in fuel prices, for instance, have led many people to ditch cars and carpool or ride MARTA.
Agenda
AAA Parking: At a glance
Founded: Atlanta, 1956
Properties: 200 between Los Angeles and Miami; half are in metro Atlanta
Some AAA-managed properties: Georgia Dome, Georgia World Congress Center, The Hyatt, Intercontinental Hotel.
Workers: 1,700, most in metro Atlanta.
Parking spaces: 150,000
Source: AAA Parking
What it costs to park
In Atlanta
Average daily rate: $12
Average monthly rate: $90
In U.S.
Daily: $15.96
Monthly: $154.23
Source: Colliers International
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