The Leader Magazine

SEP 2018

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the leader September 2018 39 resources, similar firms, or simply the right kind of people, occupiers and investors are willing to pay more for a property located where they want to be. Connectivity to transport is no exception – whether this be an airport, mass transit, or a road network. If widespread CAV use makes commuting either more productive, attractive or simply cheaper, the relative importance of distance reduces, and that of other locational factors like amenities or built environment design increases. CAVs could theoretically prompt the reappraisal of the time factor in commuting, meaning that the value of location and proximity to the city center is potentially adjusted. It has been argued that this reappraisal of the trade-off between location and mobility not only makes suburban living relatively more attractive, but could eventually reduce the importance of travel time as a limiting variable in urban planning. (Maurer, 2016) City cores City cores with high levels of connectivity and public transport provision are less likely to see AVs have a transformational impact on CRE. The sheer scale and density of people that need moving within urban cores means CAVs are unlikely to replace mass transit. This is particularly the case in cities like London, where population growth and high-density development puts pressure on existing road space. Similarly, central business districts will continue to enjoy a locational premium based on their density of amenities, skilled people, and economic activity. However, CAVs will become part of the range of transport available in a city core, either in the form of ridesharing or driverless shuttle buses. OEMs and ride-hailing companies are already making major investments into on-demand, autonomous and electric vehicles. General Motors announced a $500 million investment in the ride service Lyft, with the aim of building a new generation of autonomous taxis. Ford has invested $1 billion in Argo AI to create a fully autonomous vehicle for use in predefined areas by 2021. Daimler has a deal with Uber to roll out its self- driving vehicles as part of the platform, with Uber also investing in 24,000 AV-ready vehicles from Volvo. journey and the destination, and the im pact

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