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Is proximity to mass transit becoming less of a draw for apartment renters?

In the few years since companies like Uber and Lyft began to offer their ride sharing and carpooling options to riders in San Francisco, the premium earned by apartments near mass transit has dropped.

Apartment dwellers have traditionally been willing to pay a premium to live near mass transit stops in urban markets. But fueled by the proliferation of ride-sharing services, a rise in use of electric vehicles and other factors, that allure has begun to lessen in the Golden Gate City and that effect could spread elsewhere, according to new findings from MetLife Investment Management.

“When we look at what makes real estate assets most attractive to tenants, access to transit has traditionally been near the top of the list,” says Adam Ruggiero, head of real estate research for MetLife, which recently released its new report, “On the Road Again: How Advances in Transportation Are Shaping the Future of Real Estate.”

Apartment renters have more options to get around, which may be diluting the amount of extra rent that they are willing to pay to live near a subway stop or light rail station. In the few years since companies like Uber and Lyft began to offer their ride sharing and carpooling options to riders in San Francisco, the premium earned by apartments near mass transit has dropped—but not disappeared.

“It might lower the spread but it does not erase the spread,” says Justin Bakst, director of capital markets for CoStar Risk Analytics, which provided data for the MetLife report.

The introduction of ride sharing and carpooling services in San Francisco coincided with a decline in rental premiums for on-transit apartments (defined properties within a five-minute walk of a transit stop) from a historical average of 20 percent to only 15 percent today, according to the MetLife report

 

Read more from National Real Estate Investor

 

 

Autonomous cars are about to transform the suburbs

Suburbs have largely been dismissed by environmentalists and urban planners as bad for the planet, a form that needed to be eliminated to make way for a bright urban future.

Yet, after a few years of demographic stultification amid the Great Recession, Americans are again heading to the suburbs in large numbers, particularly millennials.

So rather than fight the tide and treat suburbanization as an evil to be squeezed out, perhaps a better approach would be to modify the suburban form in ways that address its most glaring environmental weakness: dependence on gas-powered automobiles. The rise of ride-sharing, electric cars and ultimately the self-driving automobile seem likely to alter this paradigm. In most other ways, suburbs are at the least no more damaging than dense cities, and they are superior in terms of air quality, maintaining biodiversity, carbon sequestration and stormwater management.

We may well be on the verge of evolving a new kind of highly sustainable, near–zero carbon form, one linked by technology, and economically (and increasingly culturally) self-sufficient. Autonomous cars will remotely park in solar-charged sheds off-site, to be called to the home through handheld devices, thus eliminating the need for garages and driveways. With safer vehicles that can see and react to situations better, roadways will be designed with much less paving to mitigate stormwater runoff and flooding. Homes will have drone delivery ports built in, greatly reducing the number of daily household trips and congestion. With much less redundant paving and more undisturbed land, autonomous suburbs will expand parks, bike trails and farms, and reduce forest fragmentation. Some of the next generation of suburbs will be anchored by main street districts, some of them restored, while others will be built from scratch, as we have seen in places like the Woodlands outside Houston and Valencia north of Los Angeles.

Read more from Forbes

 

 

 

Ride Sharing and Driverless Cars Are Game-Changers for Real Estate and Cities

The coming wave of ride-hailing companies and driverless cars will push down levels of vehicle ownership, reduce parking demand, and transform the way that city planners, real estate owners, and consumers interact with urban space, a panel of experts said at the ULI Fall Meeting.

Consumer adoption of ride-hailing services such as Uber and Lyft has already started affecting how some private urban developments and municipal projects are built, but the large-scale implementation of autonomous vehicles over the next decade will have even more wide-ranging implications—both positive and negative—real estate and transportation officials said during a panel discussion in Los Angeles.

Read more from Urban Land Magazine

Driverless cars: changing attitudes around multifamily real estate

Google predicts driverless cars will be commercially available by 2020. This seismic shift in how people get from place to place will change where and how we as a society live and work.

The future of commercial driverless cars

Think you’ll own your own driverless car that will sit idly when not in use? Think again.

Driverless cars will be a utility, not a luxury afforded to few. People will no longer own their own cars, but driverless cars will be as ubiquitous and inexpensive as public transportation. Imagine taking a self-driving Uber or Lyft-type vehicle to work every day, or even to meetings just a few blocks away, much like you would a city train or a bus. That’s the future of driverless cars.

And once personal vehicles are obsolete, people will no longer need garages or parking spaces at their homes, condos or apartment buildings. So what does this mean for multifamily real estate?

Read more from Buildout