Self-Driving Cars: The Answer To A Question Nobody Is Asking
The powers that be have decided self-driving cars are no longer theoretical as upwards of $80 billion have been invested in the sector with companies such as Google, Uber, and Tesla all racing to get their self-driving cars onto a road near you.
Many think it’ll have the same transformational change as the introduction of the automobile. I personally think there will be lots of push-back, as the so-called efficiencies will not accrue to the individual but to governments and corporations. Of the many different agendas at play here, this article will focus on the implications that may impact real estate.
Of changes affecting urban real estate development in the age of driverless cars, a reduced need for parking may be the most significant. 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.
Real estate firms would negotiate for fewer parking spaces, perhaps even setting up their own agreements with autonomous bus or transportation-network companies, such as Uber or Lyft, to provide tenants with transportation access in exchange for gaining more usable, high-value urban space. Though banks and financial institutions would need to get on board with the concept, this would offer a new way to add density, and could help spur more mixed-use, walkable cities.
It’ll likely change where people choose to live since ‘access to public transit’ is everywhere. If individuals are thoughtful, as opposed to entities that want dense urban environments and public transport, the easier access would shift residential value from properties in urban centers to those in suburban areas. People would likely be okay taking longer commutes and go out in bad weather.
Big box retail, which is based on the arbitrage of land costs, transport cost, and people’s willingness to drive and park, would go away. Grocers could use their stores as distribution centers for home delivery. Most of the 150k gas stations in the USA would go away.With no accidents, most collision repair shops would go away.
Much of this seems confined to the distant future, but in fact the debate will be mainstream very soon! These few guesses are just skimming the surface of what is coming. Do your research and be informed to consider personal and family impacts. And don't expect insurance or regulation for your current self-driven car to get better in the meantime!
