Skip to Content
Streetsblog USA home
Streetsblog USA home
Log In

We'd all like to see parking prices raised to reflect the demand for parking and the real costs associated with maintaining parking infrastructure, or -- better yet -- the elimination of much of the surface parking that overruns cities, making them less walkable and transit friendly.

So the idea of parking lot privatization -- theoretically moving from a public subsidy for car storage to a market orientation -- has promise. Of course, how it performs in practice depends on how the deal is structured.

The state of New Jersey is considering a privatization scheme for its transit station parking lots that would involve leasing the lots to private operators. Unfortunately, the state's plan looks like a model of how not to structure a public-private partnership, say Stephen Smith at Market Urbanism and Matt Yglesias at Think Progress.

false

Smith says the lessees will have limited control to set prices and the very arrangement will prevent development of the valuable land:

[R]ather than taking on entrenched suburban interests, we’re just adding another layer of government dependents, this time of the monied corporate variety (bidders include KKR, Morgan Stanley, Carlyle, and JP Morgan). The land on which transit parking lots sit is uniquely positioned to be converted into dense development, and the only thing worse than sitting on the land would be for the agencies to sign away their rights to change that within the foreseeable future.

Yglesias says an outright sale of the parking lots to private investors would be preferable, allowing their conversion to more productive uses, like housing:

Today’s privately owned parking lot could be tomorrow’s transit-oriented development. And today’s publicly owned parking lot could be sold to a private owner. But a parking lot that’s publicly owned but contracted out to a private operator is the worst of both worlds—a kind of publicly guaranteed, contractually obligated subsidy to parking and parking-lot operation.

Elsewhere on the Network today: Activists in Portland are campaigning to make streetcar tracks safer for cyclists, reports Bike Portland. Decatur Metro compares the energy consumption of various modes of transport, plus their intangible benefits. And TheCityFix outlines ways planners can influence the public to make good decisions on behalf of sustainability and community cohesion.

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

Friday Video: The London Neighborhood Where Bikes Outnumber Cars

...and how they got to that impressive milestone.

July 11, 2025

Friday’s Headlines Battle Galactus

Like the Marvel supervillain, U.S. interstate highway system seems to eat up everything in his path. A new book explores how to stop it.

July 11, 2025

New Report Shows Pedestrian Fatalities Drop — But Experts Say Not Enough

The Governors Highway Safety Association report showed a 4 percent drop in the number of pedestrian deaths last year, putting a slow on a dangerous trend — but advocates say the drop isn't nearly big enough.

July 11, 2025

Talking Headways Podcast: Localities Subsidize the State DOT

Adie Tomer of Brookings on how to improve regional coordination around infrastructure.

July 10, 2025

Five of the Ugliest Transportation Policies In the ‘Big, Beautiful’ Bill

Here's a rundown of some of the transportation provisions in the Republicans' reconciliation package, and what they might mean for your community.

July 10, 2025

Viva La Thursday’s Headlines

Why is French transit ridership up 10 percent since before the pandemic, while American transit ridership is down 23 percent?

July 10, 2025
See all posts