Your suggestion essentially turns into a game theory problem of "is it better to construct parking for my business or be located next to a business that was dumb enough to construct parking, as many of my customers who really would have wanted parking will end up just parking there, they will get the ire of anyone who actually gets towed, and that assumes they also have any good mechanism to decide who to tow anyway.
If that sounds a lot like a mall, it is, but I'd advocate for also removing the zoning restrictions that segregate residential condos from business (a really stupid decision that many American cities keep perpetuating).
So instead of requiring a business to have parking, ban the creation of parking and mandate the creation of parking towers or lots financed by business property taxes instead. You get denser, nicer downtowns as a result. You can similarly socialize parking in less dense areas by banning business from having free parking lots and making a few city ones instead.
Once you remove the subsidy people pay to park. What is so unfair about that?
Our whole district (West Oxfordshire, England) has free parking and it's killing us. People pass up shops they could walk or cycle to, like ours, in favour of shops they can drive to (in the nearest large town). There's no up-front cost to driving, and walking takes effort, so why not drive?
The result of the local free parking policy has been that two large town centres in the district are thriving; everywhere else is dead; and the roads are clogged with traffic.
Not sure about "most." Even in smaller cities free street parking is getting pretty rare. My town charges $1/hr for meters and it's clearly too cheap because it's still hard to find a spot most times.
Certainly in urban centers like downtown Chicago there is no such thing as free parking, even at hotels and office buildings.
Merchants decide where to locate in part based on traffic counts (vehicle and pedestrian). Places that are more valuable to merchants are more valuable to the city (property taxes and sales taxes are higher).
It's economically logical for the city to consider whether to offer this investment/subsidy.
Edit: I should put this in context:
The merchants felt the city (which collects sales tax revenue) would benefit by subsidizing parking, which allows for more traffic and theoretically leads to increased sales (more tax dollars). The city saw parking tickets as a greater source of revenue, and felt increasing enforcement was the better plan. The merchants paid meter-feeders selectively, so as to encourage locals who are a more consistent source of revenue.
They may well do so. But the point of this article is that municipal ordinances don't give property owners the choice:
> Apple is building 11,000 parking spaces not because it wants to but because Cupertino, the suburban city where the new headquarters is located, demands it. Cupertino has a requirement for every building.
http://kellyjclifton.com/Research/EconImpactsofBicycling/OTR...
Here is a roundup of numerous case studies. http://www.citylab.com/cityfixer/2015/03/the-complete-busine...