How CRE can prepare for the implications of driverless vehicles
Take the wheel
What are the potential impacts of driverless cars and ride-sharing on commercial real estate properties? Are commercial real estate (CRE) investors prepared? Recent results from a global Deloitte Center for Financial Services survey suggest that potentially high to significant impacts on industrial, office, and retail properties could be in store. Despite these findings, there are actions that CRE owners and operators can take to prepare and respond to the evolving environment.
There is tremendous buzz around the impact of driverless vehicles and ride-sharing on parking spaces—and therefore, the potential for significant development opportunities. Our recent global survey of 500 institutional investors revealed that nearly one-quarter of the respondents expect parking space to freeup and create development opportunities for CRE companies over the next 18 months. Another third said they anticipate this phenomenon to take place 18 months to three years from now. Interestingly, a relatively higher proportion of investor respondents from Japan, China, and Hong Kong anticipate the impact to take place within the next three years.