Learn Hardcore German: Direkt neben dem Schild befindet sich ein kleiner Parkplatz. - Right next to the sign there is a small parking lot.

Because neben is one of the so‑called “two‑way” prepositions (Wechselpräpositionen). When it describes a static location (“where?”), it takes the dative. Since das Schild is neuter, the dative singular form is dem Schild.

What does befindet sich mean and why is it used instead of simply ist?

sich befinden is a reflexive verb meaning “to be located” or “to be situated.” It’s slightly more formal or descriptive than ist (“is”) when talking about the position of something. In English we often say “is located,” which matches befindet sich more closely than just “is.”

Why does the reflexive pronoun sich come after befindet?

German main clauses follow the Verb‑Second (V2) rule: the finite verb (befindet) must be in position 2. Reflexive pronouns like sich then immediately follow the verb in position 3, so you get befindet sich.

What is the grammatical subject of the sentence, and what case is it in?

The subject is ein kleiner Parkplatz. It’s in the nominative case because every subject in German must be nominative. Even though the phrase comes after the verb here (due to inversion), it still functions as the sentence’s subject.

Why does the adjective kleiner end in -er?

With an indefinite article (ein) and a masculine noun in the nominative, the article doesn’t fully mark the case (its ending is zero), so the adjective takes the strong declension ending -er:
• ein kleiner Parkplatz
If it were feminine (e.g. eine kleine Garage), you’d see -e, and if it were neuter (e.g. ein kleines Auto), you’d see -es.

How does starting the sentence with Direkt neben dem Schild affect the word order?

Putting the adverbial phrase Direkt neben dem Schild in the first position triggers inversion: the finite verb (befindet) must come second, and the subject (ein kleiner Parkplatz) follows the verb. If you started with the subject, you’d say Ein kleiner Parkplatz befindet sich direkt neben dem Schild.

Could you replace befindet sich with liegt or ist? Would that change the meaning?

Yes. All three convey location but with slight nuance:
• liegt (“lies”) is common for flat or ground‑level objects.
• ist (“is”) is the simplest but more general.
• befindet sich is more formal or descriptive (“is located”).
So Direkt neben dem Schild liegt ein kleiner Parkplatz or … ist ein kleiner Parkplatz both work, but feel a bit less formal than befindet sich.

Why are Schild and Parkplatz capitalized in German?

One of the central orthography rules in German is that all nouns—concrete and abstract—are capitalized. That’s why Schild (sign) and Parkplatz (parking lot) always start with a capital letter.