Commercial parking structures for different assets and objectives

Lease

A lease structure can suit an owner seeking a defined commercial arrangement where the operator takes on agreed responsibilities for operating the car park. The term, responsibilities, investment obligations and risk allocation depend on the individual property and agreement.

Licence

A licence can provide a more flexible operating structure where the owner wants to retain greater control over the asset or where a shorter or more adaptable arrangement is appropriate. As with a lease, the final commercial and operating responsibilities are negotiated for the specific site.

Profit-share or revenue-share

A profit-share or revenue-share model can align the operator and owner around the performance of the car park while retaining an agreed allocation of operating responsibilities and commercial risk. The basis of any share arrangement, reporting requirements and cost treatment are determined for each asset rather than applied as a fixed formula.

Joint venture

A joint-venture structure may be considered where the owner and operator want to combine agreed responsibilities, investment or commercial participation around a parking asset. It can be relevant where a conventional management, lease or licence model does not adequately reflect the project’s objectives or risk profile.

How we assess the right structure

We start with the operating and commercial requirements of the asset: customer mix, demand, technology and equipment, investment needs, service model, reporting expectations and the owner’s objectives. From there, we can help determine which structure is appropriate to evaluate further.

For assets requiring a broader operating solution, see our Car Park Management and Car Park Consulting capabilities. Where external capital and a longer-term transfer structure may be relevant, see our BOOT Scheme.