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CBRE Report: Autonomous Vehicles Fundamentally Reshaping U.S. Office Market
By disrupting the way employees commute to work, autonomous vehicles are expected to fundamentally reshape the U.S. office market by 2030, according to a new report from Los Angeles-based CBRE. The result is expected to shift the decision drivers away from geographic location and access to talent, to more importance being placed on the workplace experience and building amenities.
CBRE’s report predicts that autonomous vehicles could account for between 11% and 27% of vehicle-miles traveled (VMT) by 2030.
CBRE’s David Eisenberg says, “Autonomous vehicles may have the greatest impact on U.S. real estate markets since mass adoption of the car and expansion of the federal highway system. Ride-sharing services, which currently account for only about two percent of vehicle miles traveled in the U.S., have already had a major impact on transportation patterns, so even the conservative estimate of an 11% share of VMT will significantly disrupt employee mobility, and thus impact office markets, by 2030.”
By enabling employees to work, relax or sleep during their commutes, autonomous vehicles could increase the distance they are willing to travel to the office, giving occupiers a wider—and cheaper—range of geographic options when considering office locations. This could create new investment opportunities for landlords in areas that are not currently accessible via public transportation, such as the Bay Area suburbs east of Oakland and in Southern California’s Inland Empire, according to CBRE’s report.
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