Although autonomous vehicles are not yet a common sight on today’s roadways, land-use planners, developers and other real estate professionals are already preparing for its potentially vast impact on the real estate environment, according to BBG, a Dallas-based commercial real estate valuation, advisory and assessment firm.
Recent announcements have put autonomous vehicles on the radar. On Monday, Sept. 18, Intel announced it is working with Waymo, the Alphabet-owned self-driving car company, to help its vehicles reach levels four and five autonomy, or high automation and full automation, respectively. And the technology is progressing rapidly.
“Given the pace at which autonomous driving is coming to life, I fully expect my children’s children will never have to drive a car,” wrote Intel Corp. CEO Brian Krzanich in a blog post announcing the news. “That’s an astounding thought. Something almost 90 percent of Americans do every day will end within a generation.”
His insights come in the wake of other major events, including General Motors’ announcement that it can begin manufacturing autonomous vehicles for mass production pending regulatory approvals. Following the likes of companies like Tesla and Google, the company is working to turn self-driving vehicles from something out of a movie into reality.
In addition to making roadways a safer place to be, the prospect of autonomous vehicles has influenced real estate development projects across the country. According to BBG, the developer of a mixed-use project in Nashville is reducing the amount of parking spaces available and a parking garage in Somerville, Massachusetts is reducing spaces by more than 60 percent, based on expectations that more users will be commuting with autonomous vehicles or utilizing ride-sharing services like Uber and Lyft, which are also getting into the self-driving business.
With less space allotted for parking, developers and planners are rethinking other users for the land. According to BBG, scaling back on parking could mean more room for high-value space such as multifamily developments and mixed-use, walkable destinations.
“The day is coming that autonomous vehicles will be made widely available across the country, transforming society in more ways than how we transport people,” says Chris Roach, CEO of BBG. “Besides reducing traffic congestion and the carbon footprint, self-driven vehicles will clearly impact the design and construction in real estate development projects in cities and towns nationwide.”
However, the prospect of autonomous vehicles does not come without limitations. Planners will need to modify or create new land-use designs and zoning and traffic regulations before self-driving vehicles can fully take shape, BBG notes. “As a result, it’s of the utmost importance that those planners, developers and others in the real estate ecosystem work closely together to ensure that this innovative technology enables better places to work and live,” says Roach.
— Camren Skelton