March 9, 2018
The future of driving is nearing autonomous vehicles, and its effects will surely be felt by individuals and businesses alike. Transwestern Commercial Services released a study entitled, “The New Industry Driver: How the Rise of Autonomous Vehicles Could Impact Future Real Estate Strategy,” which outlines some of the major impacts that driverless cars will have on the industry. More automakers are joining the race to get self-driving cars on the road, and real estate and transportation authorities are beginning to plan for the new normal.
Here are some of the big takeaways from the study:
- Restructured Retail: Big box stores could turn into distribution centers that use autonomous vehicles to deliver items on the same-day they are ordered. This means that current malls would have more real estate for restaurants, and even residential projects.
- Office Space: Transwestern believes the work commute will become safer, and that the need for parking garages will become nearly obsolete. They advise looking for ways to monetize that space now. Curbside pickup and ride-share lobbies will be in high demand.
- Healthcare Upgrade: With parking needs decreasing, hospitals will face fewer barriers for growth, which, in turn, could promote better healthcare and the allocation of resources to be spent on amenities and specialized medical practices, rather than parking and upkeep.
- Public Transit’s Population: The talent pool for transportation will grow, as ride-sharing apps can partner with transit authorities to subsidize rides to and from hubs for those who live in geographically-distant areas. This is already happening in Summit, NJ with Uber. Another effect is that there would be less parking needed in urban centers.
For comments, questions or concerns, please contact Daniella Soloway