Parking Management

How an employer manages the supply and demand for parking can impact commute programs by creating a significant incentive for ridesharing (carpool and vanpool). Consider the following three scenarios.

Employer provides free parking in their own lot.
Employer provides free (or subsidized) parking in non-owned lot.
Employer does not provide parking at all.

Free Parking in Company Owned Lot

This is typically the situation in suburban workplaces. Employers view free parking as an incentive to attract and retain employees. While this is a nice benefit, employers should realize that they are in fact subsidizing automobile commuters. To create more balance among all their employees, employers could consider doing the following:

• Offering preferred parking spaces to carpools and/or vanpools;
• Charging for parking with the revenues being spent on other commute options such as transit passes or bike racks, or to provide shower/change rooms for those who walk or bike to work.

Free Parking in Non-Company Owned Lot

This is typically the situation in multi-tenant buildings in suburban areas. Where the parking is managed externally, free or subsidized/discounted parking is a taxable benefit to the employee. These employers can still support smart commute options by:

• Negotiating preferred parking spaces for carpools and/or vanpools with the landlord;
• Offering the same dollar value to employees who commute to work by public transit.

Employer Does Not Provide Parking

This is typically the situation in urbanized (downtown) locations. Limited land availability dictates a short supply of parking spaces. Some employees will continue to drive to work and pay to park in parking garages while others will make the commute via public transit. Employers can support smart commute options by:

• Paying in full or in part, the cost of transit passes;
• Paying in full or in part, parking spaces for ridesharing employees.

Real Help

Smart Commute 404-7 can help businesses use parking management as a smart commute option by:

• Developing eligibility criteria specific to your workplace for preferential parking spaces;
• Determining these actual space locations;
• Creating appropriate signage;
• Developing enforcement guidelines;
• Promoting the program to your employees.

Take the Next Step

Call us or send us an email telling us you’re interested. We’ll work with you to develop a viable program. It’s that simple. And it’s free.

See other commute options:

• travelling by bus or subway – public transit
• working from home – telework
• carpooling or vanpooling – rideshare
• riding your bike – cycling
• walking

• non-traditional work schedule – flexhours and compressed weeks