For so many years experts and the public have been speculating the day when driverless cars finally come of age. Enter the the shared economy. Brandon Fugal is the Chairman of Coldwell Banker Commercial Advisors (CBC Advisors). Fugal recently spoke with Bloomberg and gave some very interesting insight regarding driverless cars. In the interview, he stated that driverless vehicles will actually “alleviate” concerns within the commercial real estate sector. When asked why, Fugal replied that people will actually take rideshare as a preference to their place of work or business, and even shopping as opposed to the parking ratio. Fugal believes that this change would not happen right away, rather he compared the change similar to AirBnB’s model.
Alphabet formerly Google is planning to expand its development of its self-driving cars unit in 2016. Consumers have been especially reliant on the company to deliver what traditional auto companies cannot to the market. Google is expected to offer a stand-alone business for the self-driving cars under the Alphabet Inc. corporate umbrella for next year. Alphabet’s self-driving cars unit will offer rides for hire. Google’s autonomous vehicles made headways on public roads, mainly near San Francisco and Austin.
It is likely that these cities will be the first places for the self-driving cars launch. The fleets are expected to range of small to large vehicles and may be found in confined locations, such as corporate office parks and college campuses. Innovation is beginning to reap in its rewards from its automotive technology advancements. It is forecasted that consumers are turning to different modes of transportation, but continue to include personally owned vehicles. Self-driving vehicle fleet development is only getting hotter. Last February, Bloomberg reported that Google was developing a rival to Uber Technologies Inc., most likely in conjunction with its driverless-car project. Uber is also pursuing its own autonomous developments.
Autonomous cars remain as a parking concern amongst CREs.
“One of the greatest concerns we are seeing in the commercial real estate market is increased pressure with companies putting more people in less space,” Fugal said to Bloomberg. Fugal said we are moving to more “modular” and “creative” workspace environments. “As much as mass transit has been a potential toward this, it really hasn’t helped alleviate the pressure on parking needs,” Fugal stated. So what does this mean? Is commercial real estate that is currently reserved for parking expected to go away? Fugal believes we will see more “responsible, sustainable” approaches to this in land development. Bloomberg then brought up an example scenario, that if a commercial real estate developer owned properties which were comprised of many parking garages, what would someone in this situation do? Fugal had replied, “In the future you should look at adapting those garages for other use.” “Infrastructure in other areas are being utilized for other types of living spaces.”