Occasionally I browse the commercial real estate site Globestreet.com.
Recently a post (sign in required) appeared there that I can't get out of my mind.
Globestreet reported on a report from Green Street Advisers, a Newport Beach, CA firm that advises large commercial real estate investors.
The gist of the report is this:
Beginning about 2020 there is going to be wide acceptance of self-driving vehicles along with greater adoption of ride sharing services like Uber. The result will be fewer cars on the road and a dramatic decrease in the need for parking lots.
Here is what's mind blowing.
"...some 75 billion square feet of parking space eventually will become obsolete, including garages. That’s more than the total square footage of US apartment, office, mall, strip center and industrial real estate combined."
Whoa! If this comes to pass, commercial real estate investment is going to undergo a cataclysmic disruption.
I know. As Casey Stengel said, "Never make predictions, especially about the future."
But the demise of parking lots is something to keep in mind as we move forward. After all, 20 years ago, no one was talking about how technology was about to make millions of feet of office storage space obsolete.