L. Burger, CPM®, CRX, CSM
It was a rather small story that appeared over the weekend
so it might not have garnered your attention.But the implications behind it are huge, and we picked it up for EBMC’s
own news page.
I’m referring to the announcement that Budweiser delivered
some 50,000 cans of beer from Fort Collins to Colorado Springs, CO by
driverless technology. The company claims that it is the world’s first
commercial delivery using the technology, and that might be. Europe has been
making great strides in the area, but so far no like announcement has hit the
Be that as it may, the age of the driverless vehicle is
here, and so begins the transformation of American business, from retail and
industrial facilities to commercial and multifamily real estate.The implications for office and multifamily
assets are huge among themselves. Just think of the impact on parking as
private users turn to driverless services such as Uber (which, by the way,
owned the Budweiser truck).
This will be especially true in CBD office and apartment
assets, where parking is often dictated by local code and increases
construction costs exorbitantly.
But the implications for retail and industrial facilities
are off the charts. Granted, this is long-range thinking, but we’re already
seeing the merger of industrial and retail as providers such as Amazon strive
for the Holy Grail of service--same-day delivery. Industrial facilities are
moving closer into populace areas and not only futurists but real estate
practitioners as well see the day when the two now-separate asset types
merge--more or less--into one. The advent of driverless deliveries moves that
vision one step closer to reality.
We mentioned parking and nowhere will automated vehicles
have larger impact than in the American shopping center. As companies like Uber and Lyft grow their
automated services, practitioners say vast acres of unused parking can be
turned over to much-needed housing.
This may all sound very much like “The Jetsons,” but to
quote another classic TV show of that era, we have the technology. Budweiser
just proved that. And if you buy into Moore’s Law, which states that computing
power doubles every 18 to 24 months as costs are cut in half, the Brave New
World I just painted is not really that far off.
As managers with experience in virtually all of the above-mentioned
property types, we at EBMC marvel at the place to which technology has taken us
and we look with enthusiasm to how traditional real estate will respond.
After all, you adapt, or you get left behind.
Steve Burger, President
EUGENE BURGER MANAGEMENT CORPORATION
president and COO of Eugene Burger Management Co., Steve Burger is directly responsible for the overall quality, depth
and consistency of management services provided in all 15 regions in the EBMC