Advanced Parking Systems Unlock Development Potential in Unexpected Markets
Automated parking technology is reshaping real estate development possibilities far beyond dense urban cores, according to industry expert Christopher Tiessen, who has witnessed firsthand how these innovations are transforming previously unfeasible sites into viable projects.
As President and CEO of KLAUS Multiparking America Inc., Tiessen has observed significant advancements in automated parking systems (APS) that have expanded development options in space-constrained environments. Today’s systems can stack five cars vertically with independent access, compared to previous limitations of just three vehicles.
Technology Evolution and Market Growth
“We could have four cars in the pit and one above, or we can have four levels above the ground level and one in the pit,” Tiessen explains. “We are completely flexible or completely on grade, which is perfect for areas like Florida, where you have a high water table, or areas near cities where you have bedrock right away.”
This technological evolution drives substantial market growth, with the global APS market valued at approximately $2.37 billion in 2024 and projected to reach $6.66 billion by 2030, representing a compound annual growth rate (CAGR) of 19.9%. The U.S. market is growing even faster at 18.4% CAGR, expected to hit $1.33 billion by 2030.
Expanding Beyond Urban Applications
What’s particularly noteworthy is how these systems are expanding beyond traditional urban applications. Developers in unexpected markets like Jackson Hole, Wyoming, and Ketchum, Idaho, are now incorporating automated parking technology, demonstrating broader market potential than previously recognized. The versatility of these systems is evident in installations ranging from boutique luxury developments in New York City to larger-scale projects in Salt Lake City.
Project Economics Transformed
A Salt Lake City development illustrates the transformative economic impact of this technology. When conventional parking requirements threatened project viability, the development team pivoted to an automated solution.
“Original plans said we had to dig down three levels, and they just could not make it pencil because those three levels just cost too much,” Tiessen notes. The revised approach utilized ten automated systems on a single level to accommodate 142 vehicles, with 14-foot ceiling heights and a six-foot pit depth, making the project financially viable.
Design Innovation and Architectural Integration
Some forward-thinking developers are turning these functional systems into architectural features. Tiessen describes a boutique residential building near New York’s Flatiron district that incorporated its automated parking system as a visual amenity visible through frosted glass from the building’s pool area.
“You drive your car into a cabin, there are lasers guiding you and telling you your position correctly. You go out, and the system takes your car and just puts it into a shelving unit,” he explains. The system’s movement creates an unexpected and intriguing architectural element through the translucent glass.
Recent engineering advances have addressed key structural challenges that previously limited application. Newer systems require gates only at alternating bays, providing more flexibility for column placement—a significant consideration for structural engineers and architects working with challenging sites.
This flexibility has particular impact for oddly shaped lots that previously presented development challenges. “You’re seeing lots that have odd shapes that typically would not be developed, because they would not be feasible,” Tiessen observes. “The cities love it because now these areas that typically had no value to a developer can be used.”
Environmental Benefits
The environmental benefits of automated parking systems extend beyond space efficiency. By eliminating the need for vehicles to circle while searching for parking spaces—an issue that can add up to 10 minutes of drive time in urban areas—these systems help reduce emissions. Additionally, the space savings often enable more green areas within developments.
“Because we are creating space by condensing parking so much more… we’re also seeing green areas being created,” Tiessen adds. “Water can just go to the ground and do its natural thing. But also we have more green areas for the tenants as well.”
Future Market Outlook
Market indicators suggest strong continued growth for APS solutions. The parking industry’s recovery since the pandemic, growing from $58 billion in 2020 to $121 billion in 2022, reflects the increased investment opportunity in parking innovations. As land costs rise and development sites become more challenging, APS is positioned to play an increasingly important role in project feasibility.
For development teams considering these systems, early integration in the design process is crucial, as APS interacts with multiple building systems, including sprinklers and HVAC, with structural requirements that need to be addressed from the outset.
As urban and suburban development continues to evolve, automated parking systems are enabling innovative approaches to space utilization, creating opportunities in markets where parking constraints weren’t traditionally a primary concern. With robust market projections and advancing technology, these systems are set to unlock development potential in increasingly diverse real estate markets, turning previously overlooked sites into valuable assets.
