How might driverless cars impact real estate?
One year ago, the Department for Transport targeted 2021 for having connected and automated vehicles on UK roads.
One year ago, the Department for Transport targeted 2021 for having connected and automated vehicles on UK roads.
The car industry has undoubtedly been accelerating R&D projects in this area. ‘Driven’ trialled a driverless car in Stratford London last year. In the US, General Motors’ Cruise launched 2020 by unveiling its vision for driverless shared ownership cabins, and Google’s Waymo announced last week that it would team up with UPS to test self-driving vans in Arizona.
Driverless vehicles have been promised by many as a panacea to numerous ills. Automation could mean efficient traffic management, greater accessibility, tailored public transport, faster travel times and a reduction in the large costs of congestion to business.
There remains scepticism regarding timescales, given safety concerns and that only 54% of UK A and B roads have 4G coverage (or better), there remains a large infrastructure gap to fill. There is also a concerning blind-spot when it comes to bad weather in trials. But even with delays, we might soon start seeing changes to where consumers choose to live and shop. This could well happen within the term of a commercial lease, or impact the long-term viability of developments, and all manner of consequences to our lives and real estate have been theorised.
Greater ease of transport may shift demand for residential space away from densely populated areas. Cheaper car sharing may remove the demand for city-centre car parking and free up space for leisure, retail or other uses. Driverless vans could amplify the profitability of online shopping and click-and-collect. Retail stores may even go mobile and cars might eventually lose ground to automated pods that shuttle goods and people alike.
Likely or not, the scope for innovation is exciting. It would also fundamentally disrupt the real estate sector, as longstanding perceptions of the value of locations adapt. So, flexibility in your real estate portfolio remains critical.
As for what land will have the greatest value in the future? That’s the billion-pound question, you tell us!
Contact
Mark Hickson
Head of Business Development
onlineteaminbox@brownejacobson.com
+44 (0)370 270 6000
Related expertise
You may be interested in...
Legal Update
Charity law update: December 2024
Legal Update
When roads diverge regulating autonomous vehicles: EU v UK approaches
Press Release
Comment on Older People's Housing Preferences report
Legal Update
Navigating the future: A consultative approach to local government funding reform
Legal Update - Public matters newsletter
Public matters: December 2024
Online Event
Pupillage open evening
Published Article
Navigating the future of local government finance: Strategies for maximising central government funding
Press Release
Comment on English devolution white paper
Legal Update
Taking account of a supplier’s approach to payment in major contracts procurement (PPN015 and PPN018): What is new?
Legal Update
Embedding social value in procurement
Legal Update
Planning Reform Working Paper: Planning committees
Legal Update
Martyn’s Law: Paving the way for enhanced security measures across UK venues and events
Legal Update
Employment Rights Bill: Will it cost more to outsource public services and back-office functions?
Legal Update
A call to councils: Implementing effective tree management to prevent future tragedies
Legal Update
Navigating workplace sexual harassment laws during the festive season
Press Release
Comments on new MHRA clinical trial regulations
Press Release
Comments on the National Planning Policy Framework reform
Guide - PFI expiry
PFI expiry guidance for schools
Opinion
Revolutionising the Workforce: Impact of Get Britain Working White Paper
Legal Update
The latest take on vicarious liability for kinship / connected person foster care
Legal Update
Supreme Court shines a light on collective agreements
Press Release
Browne Jacobson advises Celtic Freeport as it opens for business
Press Release
Comments on the Prime Minister’s ‘Plan for Change’ speech
Press Release
Browne Jacobson advises Oxford City Council on Barton Park affordable housing deal
Legal Update - Public matters newsletter
Public matters: November 2024
Press Release
Comment on local goverment finance policy settlement
Legal Update
A new code of conduct, how this might be useful for local authority companies
Opinion
Opportunities for private children’s services to engage with Regional Care Cooperatives
Legal Update
The housing benefit subsidy deficit: Strategies for funding temporary accommodation
Legal Update
Manchester Ship Canal Co Ltd v United Utilities Water Ltd: Opening the floodgates to mass litigation?
Legal Update
What’s in a name: ESG principles and UK local authorities
Legal Update
How the Data (Use and Access) Bill will impact the public sector
Legal Update
Know your dispute resolution clauses: Key take-aways from Kajima v Children’s Ark and Lancashire Schools v Lendlease
Legal Update
Martyn's Law: A closer look at the UK's new proposed anti-terror measures
Opinion
Power for local authorities to conduct compulsory rental auctions of vacant high street properties to come into force next month
Legal Update
Building an inclusive workplace: Strategies for attracting and retaining disabled talent
Legal Update
What will the new RISE Scheme mean for schools and academy trusts?
On-Demand
Kinship care: DJ v Barnsley Metropolitan Borough Council and SG
Legal Update
Roundtable report: Community engagement in high street regeneration
