The parking industry has not seen any period like the present. Neither 9/11 nor the Oil Embargo of 1973 had effects similar to the current crisis. A number of companies with large parking operations report the loss of 95% of business volumes. Even parking locations proximate to essential or residential generators have seen revenues cut by 40 to 70%. Not surprisingly, many locations have simply been closed or have been forced to change operating techniques normally used for low density/low turnover applications.
- Most parking companies have not been able to make lease payments.
- Operators and owners have struggled to find operating standards that can be supported by diminished revenue streams.
- Parking companies have been rendered far less financially stable both because of the loss of revenues and because of the rapidity of the losses.
- Significant operating talent and capability is being lost to the industry on a weekly basis.
Dane and Company, Inc. has worked extensively on the fundamental problems during this brief period. We have:
- Developed interim budgets for clients and their lenders.
- Analyzed lease obligations, force majeure clauses and termination provisions.
- Produced down-sizing plans and strategies for many locations.
- Assisted in the formation of PPP documentation and applications.
- Maintained good industry contacts which will be key when re-building of the business commences.
Because we have worked effectively in the past on operator compensation issues and because we understand the present circumstances, we have a unique understanding of the sorts of deal structures that will work going forward.