{"id":1004165093,"date":"2017-01-25T12:42:21","date_gmt":"2017-01-25T20:42:21","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004165093"},"modified":"2020-04-15T08:31:15","modified_gmt":"2020-04-15T16:31:15","slug":"get-ready-for-the-driverless-revolution","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/get-ready-for-the-driverless-revolution\/","title":{"rendered":"Get Ready for the Driverless Revolution"},"content":{"rendered":"

By Steven Bandolik and Kenneth Meyer<\/p>\n

\"Bandolik_Kenneth_800x600\"<\/a>

Steven Bandolik and Kenneth Meyer<\/p><\/div>\n

Experts from a wide range of industries agree that the coming decade will be defined by the automation of the automobile. When we discuss the future of mobility, which is also detailed in Deloitte’s 2017 outlook<\/a>,\u00a0it\u2019s important to understand that the trend is much bigger than driverless cars or any one sector\u2014it\u2019s about how people use real estate and the space around them.<\/p>\n

As the number of individually-owned cars declines, the shift to car-sharing, ride-sharing, and autonomous vehicles will affect commercial real estate in multiple ways. Our columns in the November 2016<\/a><\/strong> and December 2016<\/strong> <\/a>issues of CPE touched on the trend as it relates to smart cities and investment. This month, we\u2019ll explore the two areas where autonomous cars stand to have the greatest impact on real estate\u2019s bottom line: parking and mass transit.<\/p>\n

Boosting Value for Underachievers<\/strong><\/p>\n

In a future tailored to driverless cars, parking lots\u2014often viewed as underproductive assets that sit unused much of the time\u2014will be less essential than they are today. A shared, driverless \u201cpod\u201d could pick up passengers, drop them off at workplaces or other destinations, and return later in the day to bring them home. Such a vehicle is nearly fully utilized, and almost never sits unproductively at rest in a parking lot.<\/p>\n

Freed from the necessity to accommodate hundreds or thousands of cars, retail and office property owners could reduce the footprint dedicated to parking and focus on building additional rentable square footage. Even though parking facilities will get somewhat smaller over time, people will still want and be able to drive their own vehicles and will need places to store and have easy access to them.<\/p>\n

This ultimately would provide opportunities to develop more profit-generating real estate across a broad spectrum of asset categories\u2014retail, office and multfamily and parking (commercial and residential).<\/p>\n

Micro Mass Transit <\/strong><\/p>\n

Another dimension of the evolving transportation ecosystem is that we are likely to see a greater reliance on what is called \u201cmicro mass transit.\u201d Some observers believe that mass-transit networks could eventually rely on smaller buses that will extend mobility to neighborhoods not adequately served by conventional buses and trains.<\/p>\n

This shift to more agile mass transit \u2013 coupled with widespread use of lower-cost, efficient, autonomous vehicles\u2013has the potential to transform neighborhoods by creating greater accessibility\/connectivity and consequently increasing their value. This could even have a ripple effect on office, retail, or residential properties that are not located on main transportation lines.<\/p>\n

Act Now <\/strong><\/p>\n

The growing popularity of driverless technology underscores the urgency of the trend. Most commercial real estate companies seem to be projecting that the technology will be commercially available within the next five to 10 years. Given the gestation periods associated with development, however, the time to start planning for this change is now. Transforming real estate, of course, demands attention to zoning, finance, regulations and design, not to mention the intricacies of construction. This is today\u2019s issue, and real estate decision-makers must get ahead of a curve that is rising exponentially.<\/p>\n

Steven Bandolik<\/strong> is a managing director with Deloitte Services LP and a senior leader in Deloitte\u2019s real estate services practice. A 30-year industry veteran, he provides advisory services in a wide range of business areas, including capital markets, corporate finance, mergers and acquisitions, investments, restructuring and reorganization, workouts and asset recovery.<\/em><\/p>\n

Kenneth Meyer<\/strong>, a principal with Deloitte Consulting LLP, has more than 20 years\u2019 experience serving the real estate industry and corporate real estate clients. \u00a0He is the national leader of Deloitte\u2019s Real Estate Consulting practice and is a member of Deloitte Consulting LLP\u2019s Future of Mobility practice, advising clients on the impact of autonomous vehicles and other trends. Ken has helped leading real estate organizations develop strategic, operational, financial modeling and technical initiatives. He works on a variety of strategic issues, such as corporate expansion, due diligence, financial analysis, post-merger integration, operational redesign for leasing, management, and finance\/accounting.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

The veteran Deloitte consultants explain the opportunities and challenges created by the new technology.<\/p>\n","protected":false},"author":1260,"featured_media":1004165105,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[39191,21783,21785,21787,21684],"tags":[32782],"class_list":["post-1004165093","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-rc-cfo-corner","category-investment","category-property-management","category-technology","category-viewpoint","tag-deloitte"],"acf":[],"yoast_head":"\nGet Ready for the Driverless Revolution - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/get-ready-for-the-driverless-revolution\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Get Ready for the Driverless Revolution\" \/>\n<meta property=\"og:description\" content=\"The veteran Deloitte consultants explain the opportunities and challenges created by the new technology.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/get-ready-for-the-driverless-revolution\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2017-01-25T20:42:21+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-04-15T16:31:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/01\/Bandolik_Kenneth_800x600.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Steven Bandolik\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/get-ready-for-the-driverless-revolution\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/get-ready-for-the-driverless-revolution\/\",\"name\":\"Get Ready for the Driverless Revolution - 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