self driving car - impact on real estate
TRANSCRIPT
Driverless Cars: Impact on Real Estate
Rodrigo AmadoEmily Dunn Pauline MartinKshitij ParasharClelia Schwing
Agenda
What is a driverless car?
Impacts on:- Parking- Retail- Residential
Companies Involved
Driverless cars will have profound impacts on our cities and the way we live.
90% Driveless
cars
90% Driveless
carsX2 Capacity
Reducetime by 60%
on Motorway
Impact on Parking
Saved space = More recreation!
Parking Space, Now
Ride Sharing = More Green!
How parking affects the economics of a real estate project
Source: CBRE Research, Q1 2016
Commercial Real Estate
Single-Family Real Estate
Development cost Occupancy cost
0
20
40
60
80
100
120
140 1 additional parking space
Cost/unit Volume/unit
+25% -25%
How parking affects the economics of a real estate project
Source: CBRE Research, Q1 2016
Commercial Real Estate
Single-Family Real Estate
Development cost Occupancy cost
0
20
40
60
80
100
120
140 1 additional parking space
Cost/unit Volume/unit
+25% -25%25-30% Mortgage
How parking affects the economics of a real estate project
Source: CBRE Research, Q1 2016
Commercial Real Estate
Single-Family Real Estate
Development cost Occupancy cost
10-12 % 4,5 %
0
20
40
60
80
100
120
140 1 additional parking space
Cost/unit Volume/unit
+25% -25%25-30% Mortgage
Offices’ Underground garage
Driverless cars could allow people to live wherever they want
Miles spent for park-ingMiles getting to your destination
30%
70%
Impact on Parking: Increased Flexibility
Impact on Parking: Commercial
800 million Sqft
1/8 commercial parking
Impact on Parking: More Office Space!
2OFFICE INVENTORY
Parking Space Itself, Decreases!
Impact on Retail
Stretch out
Impact on Retail
Stretch outEasier
commute
Customers
Impact on Retail
Stretch outEasier
commute
Customers
Delivery
Commodities
Impact on Retail
Stretch outEasier
commute
Customers
Delivery
Commodities
Lifestyle &
Entertainment
Impact on Retail: Rent decreases
Rent
Density
Current situation With driveless car
Impact on Retail4-Quadrant Model
1
2
Impact on Retail4-Quadrant Model
1
23
4
Impact on Retail4-Quadrant Model
3
4 5
6
Impact on Residential
“Cities may become places where no one lives but where everyone works and meets” (Noah Smith, 2015)
Impact on Residential
Easier commute
Key Assumption: Most jobs in city centre.
More suburban
areas
Impact on Residential
Easier commute
Key Assumption: Most jobs in city centre.
More suburban
areas
Impact on Residential
Easier commute
Bigger houses
Row house complex
Key Assumption: Most jobs in city centre.
More suburban
areas
Mix retail & Residential
Impact on Residential
Easier commute
Bigger houses
Row house complex
Key Assumption: Most jobs in city centre.
Impact on Residential: Suburbs
Space: Asset/Market:
Impact on Residential: Downtown
Space: Asset/Market:
Overall Housing Rent Impacts
Assumption:
Agricultural land not available for housing
• Increased demand for land = flattened line
• Increased land value due to reduced costs of transfer (K)
What toWatch ?
What to Watch
Increased Property value
suburbs
Lifestyle & Entertainment
areasLess Parking
The future is
here… Adapt.