12A — July 15 - 28, 2016 — DelMarVa — M id A tlantic
Real Estate Journal
www.marejournal.com
D el M ar V a By Wes Guckert, PTP, The Traffic Group The impact of driverless cars on real estate
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forcing real estate investors and developers to re-examine their strategies.
he buzz lately has been all about driv- erless cars and what
parking take up 45% of the downtown central business district, and cars can oc-
of these vehicles means real estate owners and investors should start paying attention now. But, how will driverless cars effect real estate usage and values? Less Parking and Streets Needed If private vehicle owner- ship dramatically declines, the need for all types of park- ing will clearly decline. That means the value of parking garages and parking lots will plummet. It’s also likely that some above ground parking garages will have to be re- purposed.
Parking for high-rise apart- ment buildings that comprise as much as 15% of construc- tion costs, will likely become unnecessary, or at least re- duced. This reduction in cost will increase developer re- turns or allow reduced rental costs by as much as 30%. Keep in mind, any developer who builds parking today could be at a huge disadvantage when the demand for parking diminishes. In addition, parking lanes on streets could be converted to bicycle and scooter lanes, while some streets could be re-purposed into green spaces, decreasing water runoff and heat buildup. San Francisco already has programs that allow residents to repurpose street parking into mini pub- lic spaces or very small parks and patios, called “parklets.” Converting a fraction of San Francisco’s 280,000 parking spaces (which represents 40 million s/f) could result in significant changes in resi- dential and retail markets in San Francisco. Another major change: au- tonomous cars operating as fleets and maintained and refueled at central locations will make the 125,000 gas stations in the U.S. obsolete. Data Centers As millions of vehicles tran- sition into sophisticated mo- bile computer driven telecom- munication devices, the al- ready extraordinary demand for data center space will grow. There will be, poten- tially, a need for office space for high-tech and creative professionals who create the software and designs for these new vehicles. Summary There is no question that vast economic and cultural change will arrive with the driverless car and real estate will be impacted in a variety of ways. Now is the time to prepare. Wes Guckert, PTP, is president & CEO of The Traffic Group, a leading 30-year-old traffic engi- neering and transporta- tion planning firm head- quartered inWhite Marsh, Maryland. For more infor- mation please contact the author at: wguckert@traf- ficgroup.com, visit the web- site www.trafficgroup.com, or follow him on Twitter @ wes_guckert. n
our t rans - p o r t a t i o n future may l o o k l i k e . Transporta- tion Secre- tary Antho- ny Foxx has s a i d f u l l y autonomous
As millions of vehicles transition into sophisticated mobile computer driven telecommunication devices, the already extraordinary demand for data center space will grow.
For example, Houston’s central business district is comprised of 65% streets and surface parking with only 35% for buildings and parks. Even in Washington, DC, which has a sizable mass transit system, streets and
cupy substantial space within buildings - upwards of 30%. It is hoped that driverless vehicles will reduce the need for car-related space, relieve congestion, reduce fuel use, and lower the number of ac- cidents. The likely advent
Wes Guckert
cars will be available to con- sumers within the next ten years. The reality is that these new vehicles will likely drive massive disruption,
There is no question that vast economic and cultural change will arrive with the driverless car and Real Estate will be impacted in a variety of ways. Now is the time to prepare.
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www.trafficgroup.com
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