Occupier-Edge_Ed.5_US

DISRUPTION

Other questions: Will driverless cars be owned by its users – as most vehicles are today – or will it be a TAAS economy with manufacturers, ride share services, or other companies being the on-demand providers of the majority of vehicles on the road? Will driverless cars also be heavily weighted towards EV technology, thus greatly reducing the need for gas stations, emissions testing, and combustion engine mechanics? Although there are still a lot of unknowns when it comes to the future of driverless vehicles, here’s what we do expect: driverless cars will be game changing technology that changes more than just how we get around town. It has the power to increase employee productivity, free up real estate for more productive uses, lower the costs of technology, and greatly reduce automobile accidents. And with 1.3 million people dying every year worldwide from auto accidents – most of them caused by human error – and anticipated savings of up to $190 billion a year from reduced health costs, driverless cars can’t come fast enough. Cushman &Wakefield is the first commercial real estate service firm to the market with a global comprehensive automative SPG offering. Its mission is to deeply understand and address the distinctive challenges of the automotive sector from labor issues, logistics, infrastructure, technology, credits and incentives, to the unique requirements of the real estate itself.

driverless vehicles will ultimately alter the demand for parking, freeing up space in and around existing commercial real estate. This will offer myriad challenges and opportunities for owners and occupiers.

companies to take advantage of lower real estate costs that come with less convenient locations. This will, of course, dramatically impact the trucking industry as driverless vehicles are able to carry freight 24/7 with reduced labor involvement. In fact, Reuters reported recently that Tesla is developing a long-haul, all electric semi-truck with autonomous driving capabilities that moves in “platoons” and automatically follow the direction of the lead vehicle. Secondary impacts. Beyond the automobile industry and the consumers of various modes of transportation, there are other constituents who will be greatly impacted by the proliferation of a driverless vehicle economy. As with any technology breakthrough that redefines the culture, there will be winners and losers. A few examples of areas that may be positively and/or negatively impacted include: Local governments: How are driverless cars regulated? Do roads and highways include driverless and driver-led vehicles in the same locations? Does traffic increase in certain locations because of the increased ease, and decreased cost, of driverless transportation? How much rezoning of real estate–parking lots, gas stations, etc.–needs to take place? How is public transportation ridership impacted? Public safety: To what degree will automobile accidents, and related injuries and deaths, be minimized or eliminated? Where are police and highway patrol resources reallocated if speeding and other infractions are no longer common? Labor: Which skill sets and occupations will be reduced or eliminated (e.g., cab, truck, and delivery drivers, traffic rout administrators, emergency room personnel)?

Provide more location flexibility. When it comes to

driverless vehicles, the old saying, “location, location, location” takes on a diminished meaning. Sure, location will always matter, but driverless transportation has the power to reduce the stresses of a daily commute and provide opportunities for commute time to be used more productively. Both of these factors will make it increasingly less important to live close to the office for some employees. This may increase the demand for housing, and with it supporting retail, in the exurbs of cities as the distance from ones work can be increased with a lesser impact on one’s quality of life. Companies can open offices more easily in less expensive secondary markets and draw from a larger talent pool as location becomes less critical. The relationship with public transportation may also change as immediate proximity is also not as important since driverless cars are plentiful and can easily and cost effectively get people from the train or bus to their final destination. Industrial real estate users – manufacturers, fulfillment centers, and warehouses – will also see changes from the advent of driverless technology. Just as the advent of new energy sources allowed for mills to move away from rivers, an abundance of low-cost, unmanned vehicles will open up manufacturers to less costly areas less reliant on air and sea ports or train lines. The reduced and/or eliminated labor costs associated with moving materials will allow for

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