How self-driving cars will profoundly change real estate

Key Points:
Fewer parking lots
In 2016, in the D.C. area, commercial underground parking garages added 10-12% to the cost of office construction according to CBRE, the world’s largest commercial real estate service firm.


Fewer gas stations.
“Think of all these gas stations. There are 125,000 gas stations in the United States in prime real estate, you won’t need those anymore,” said Andy Cohen.


Self-Driving Cars Curbed
A recent  policy brief  by the Institute of Transportation Studies at University of California, Davis, was even more clear. The convergence of three new technologies—automation, electrification, and shared mobility—has the potential to create a whole new wave of automation-induced sprawl without proper planning and regulation.
Shannon McDonald, an architect, assistant professor at Southern Illinois University-Carbondale, and an expert in future mobility planning.  “I think it’ll have the same transformational change as the introduction of the automobile.”


There are currently 263 million non-autonomous cars on the road, and roughly 2 billion parking spaces in the United States.
“Streets are 25 to 35 percent of a city’s land area… [the] most valuable asset in many ways,” says Zabe Bent, a principal at transportation consulting firm  Nelson/Nygaard
But with the potential for driverless tech to reduce private car ownership, developers  won’t need to worry about parking spaces, and can make more money by avoiding wasting space on cars
Redesigning parking lots and entrances to be  less about static parking and more about increasing the flow of dropoffs and pickups.


Self-Driving Cars MYND

Colin Wiel

  • Parking lots and garages will become less necessary – if not obsolete.
  • Cities will lower their parking requirements, thereby allowing developers to increase residential density.
  • Neighborhoods that currently lack parking will become more  attractive.
  • Housing will become more affordable.  The average parking space is only 330 square feet in size but can add anywhere from  $10,000 to $50,000 per space  to a development’s total project costs


Self-Driving Cars CEOWorld

Our forecast is as follows:
  • new-build residential property  will become cheaper;
  • detached houses on the outskirts of town with insufficient infrastructure will become less liquid;
  • the demand for short-term rentals and hotels will decrease;
  • the demand for retail property will fall, whilst the demand for warehouses will increase;
  • warehouses will be built even further from city centers;
  • parking spaces in business districts will be relocated closer to the periphery of cities.


How Automation Will Affect You Personally


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