JLL research shows technology is shaping the infrastructure of shopping centre car parks

JLL research shows technology is shaping the infrastructure of shopping centre car parks

September 13, 2018

JLL has published its latest 'On.Point' UK Shopping Centre Car Parks report, which surveys the performance of 62 shopping centre car parks across the UK. The report reveals the impact of technology on the infrastructure of shopping centre car parks as well as a significant rise in both the income received and business rates paid in 2017. The key findings include:

Technology

  • The proportion of income car parks received from card payments increased from 20% in 2016 to 30% in 2017, whilst the proportion of income received from cash payments fell from 77% to 67% in the same period
  • In 2014 only 10% of shopping centre car parks had the ability to pay contactless, in 2017 this has increased to 44%
  • In 2017, half of all shopping centre car parks surveyed had installed Automatic Number Plate Recognition (ANPR) compared to 40% in 2016
  • However, despite the introduction of electric vehicles (EV) in the UK, 83% of the shopping centres surveyed have no EV charging facilities, with an average of 0.89 charging points across the survey, up from 0.68 in 2016

Income and costs

 

  • In 2017, shopping centre car parks saw a 16% increase in income per space
  • There was a large increase in business rates paid, rising to 227.85 per space compared to 159.73 per space the previous year
  • The proportion of running costs to income fell from 41% in 2016 to 40% in 2017, despite the increase in business rates

 

Jordan Jeffery, Head of Retail Management at JLL, commented: "The growing need for technology and changes in consumer behaviour are shaping the infrastructure of shopping centre car parks. Income received by cash makes up only 67% of the total income received, compared to 87% in 2014 and nearly half of shopping centre car parks now have ANPR. Currently, shopping centre car parks are short supplied when it comes to EV charging facilities, however we expect this to change in the near future with over 50% of shopping centres looking to install charging points.

 "We can expect major changes to transport infrastructure over the next couple of decades; active management, good rating advice and investment into key infrastructure are all essential to help improve running costs and maintain income."

Richard Servidei, Director, Alternative Investment at JLL, added: "Business rates are the largest component of the costs of a car park, making up on average 30% of total running costs. Last year's revaluation of business rates in the UK caused a sharp rise in business rates per space in 2017. Despite this, the proportion of running costs to income fell slightly mainly due to a significant increase in income, and most other costs staying consistent with 2016."