Posted 29 Apr 19 By: No comments yet

As Demand for Parking Changes, CRE is Impacted

All across time, transportation has stood as a major factor in shaping civilizations. A culture’s mobility effects not only the daily lives of those who live there - but also the region’s contextual building plan.

In our ever-advancing global society, new technologies are completely reshaping metropolitan and suburban design schemes. These trends extend all over the world, ushering in a massive industry-wide effort aimed at adapting to meet mobility’s new slew of demands.

The expanded array of vehicles intrinsically tie into the sphere of CRE, as they require specific accommodations, storage, and parking facilities. The current trends and technologies affect the planning and development of modern multifamily, office, and retail sectors.

Decentralized Parking

As of now, cities and popular areas have a high concentration of parking facilities. In both downtown and residential areas, it’s necessary for ample parking to be available and easily accessible for visitors, employees, and residents. However, implementations for autonomous vehicles are adamantly changing this reality.

Autonomous vehicles don’t need to be parked nearby the destinations. This means CRE will undergo a huge shift as large openings of potential downtown spaces provide for constructive and cultural opportunities.

All in all, experts are predicting a 90% decline of the current parking inventory in the next 15 years with a total of 6,500 s.m. of affected properties.

A Decline in Car Ownership

In today’s society, getting around is easier than ever. Mobility techs such as Lyft and Uber reduce the need for individuals to purchase and own cars, as commitments are becoming increasingly unnecessary for transportation.

In 2018, Uber’s former CEO Travis Kalanick told the World Economic Forum that “People will not own cars, they'll have a service that takes them where they want to go.” Kalanick believes that personal car ownership in major cities will be generally extinct by 2025.

This high level of convenience delivered by ride-sharing companies is changing consumer behaviors across the board, which inadvertently effects CRE. Residential parking needs are expected to decline, and urban parking schemes will also feel the heat.

High Risk for Gas Stations

As electric vehicles continue to expand mobility, properties utilized for gas stations are at high risk. At the same time, a new frontier for CRE to explore will be electric-charging stations.

Experts in the field anticipate 140,000 US gas stations will become obsolete, but many of them will be transitioned into self-charging stations to fuel the future’s transportation module.

Aside from EV, the culture of ride-sharing reduces the utility of roadside shopping. Travelers who are simply entering in their destination are less likely to stop at strip malls, city centers, and other roadside destinations. These areas offer massive potential for CRE repurposing projects.

Reconsiderations in Lot Design

In order to keep up with the times, parking lots need to accommodate AV and EV. CRE will need to be renovating lots and ensuring that the flow, transitions, and spaces will be able to function according to the maturing mobile scene. Charging stations and autonomous sectors are basic requirements moving forward.

By: NAI Global CRE Outlook, April 10, 2019

Read original story here https://bit.ly/2VCFudy 

NAI Global is a leading global commercial real estate brokerage firm. NAI Global offices are leaders in their local markets and work in unison to provide clients with exceptional solutions to their commercial real estate needs. NAI Global has more than 400 offices strategically located throughout North America, Latin America, Europe, Africa and Asia Pacific, with over 7,000 local market professionals, managing in excess of 425 million square feet of property. Annually, NAI Global completes in excess of $20 billion in commercial real estate transactions throughout the world

 

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