Could the best form of real estate be small, dark and have no view?

Thread on the parking lot business model:

The economics are similar to the SaaS model: large upfront costs, but then revenues are largely recurring with low maintenance costs. Initial startup costs include the purchase of a lot/garage, lift gates, security cameras, etc.

There can also be regulatory barriers to entry, since many parking lots in dense areas require permits and licenses. Parking lots also have some pricing power, and are far less likely to be subject to rent control than residential real estate.

The majority of maintenance work is simple and cheap: repainting lines, replacing signage, paying for lighting. Most parking lots make money by filling up the empty spaces with cars that pay an hourly rate or flat rate for the parking.

There are also economies of scale tied to the parking lot business, since owning many lots can then mean using the same back office and support services. The parking lots business in the US makes 10 B$ in revenues annually.

Obviously parking lots are quite dependent on location. 2 identical lots just 3 streets apart can have very different revenue profiles. The ideal would be a place where there are daily office parkers, and at night, the lot is close to stadiums, theaters, shopping centers, etc.

So parking lots have the advantages of SaaS (low maintenance costs & recurring revenues) with the main advantage of real estate (leverage), along with pricing power and sometimes, regulatory barriers to entry.