Examining How Driverless Cars Could Impact the CRE Market

 Posted on December 00, 0000 in Commercial Real Estate

With autonomous cars becoming more commonplace, experts are now saying that it is no longer a matter of "if" the commercial real estate market will be impacted, but "when." Smart investors know that means they need to start planning now - before the future arrives. Learn more about how you can stay ahead of the trend of driverless cars, and discover how the assistance of a seasoned commercial real estate lawyer can help you mitigate against the potential issues that may arise along the way.

Autonomous Cars and CRE Development 

To be successful as a CRE developer, one needs to stay ahead of the trends, but autonomous cars are not just a trend; they are becoming a way of life. The government believes they have the ability to reduce the number of traffic fatalities that America experiences each year, so they are pushing to have more cars developed and tested. People and businesses are responding, en mass. In fact, rideshare companies are already using autonomous cars to increase their profit margin. Countless others are hoping to follow suit.

People are purchasing and testing them en mass, and the government is certain that they will reduce the number of automobile deaths and injuries each year, which is why they are pushing to put even more driverless cars on the road. Even rideshare companies are using autonomous vehicles to increase their profit margin.

Understanding the Potential Impact 

Experts believe that the increase in autonomous cars will encourage more ridesharing, either through services like Lyft and Uber, or via personal vehicles. This alone is expected to greatly reduce the demand for parking, but there are other factors that drive it down even further. Driverless cars require 60 percent less parking space than driver-operated vehicles, and since autonomous vehicles can drop off and pick up passengers, the average household is expected to need fewer cars in the future. In short, parking garages will be almost obsolete when driverless cars take over the roads.

On the one hand, this could give commercial real estate developers more freedom to add more office space or additional amenities that they might not have had space for previously. On the other hand, developers of today are likely to experience a significant financial loss if they do not plan for the future. For example, if a developer adds a large parking garage in hopes of generating extra income, they could soon find that their once lucrative (but expensive) parking garage has become a sinkhole from which they cannot escape.

Contact Our Naperville Commercial Real Estate Lawyers

At Lindell & Tessitore, P.C., we help investors plan for the future. Committed to helping you grow and expand for years to come, our Naperville commercial real estate lawyers can assist you in everything from performing due diligence to negotiating a better contract. Call 630-778-3818 and schedule your personalized consultation with our offices today.

Source:

https://www.cpexecutive.com/post/how-are-driverless-cars-reshaping-cre/