SAN FRANCISCO—A panel at the ULI Fall Meeting moderated by ULI Global CEO Patrick L. Phillips looked at the question of what new trends in technology are disrupting the status quo of real estate development. More and more, real estate must adapt to constantly shifting demands from tenants, particularly under a frenzied pace of technological innovation.

"There is an increasing chasm between the industry and its customer base," said David Mandell, co-founder and CEO of PivotDesk, a co-working platform. "We simply can't predict our business the way we used to."

Increasingly, Mandell said, clients and tenants are thinking primarily about how they can grow businesses; to this end, are looking for flexible solutions when it comes to leasing, parking and workspaces, often seeking out real estate partners to support business visions and even willing to drop long-term partners who cannot.

"I can grow my business in the way it needs to grow, not the way real estate needs it to grow," Mandell said in paraphrasing this sentiment.

One tech innovation driving the industry through not driving is the growing use of autonomous cars. In addition, the growth of e-commerce and the rise of co-working platforms such as WeWork will affect how real estate is built, developed and managed.

E-commerce—showing no signs of slowing down—has a tremendous need for warehouse space and fulfillment centers, three times that of traditional brick-and-mortar retail, according to Hamid Moghadam, co-chair of the 2015 ULI Fall Meeting steering committee as well as CEO and chairman of the board of Prologis. While new businesses may have fluctuations in needs for space, technology can actually help owners and operators make sure assets are being used to the full potential.

"The good news is that if you own scarce assets, someone will be able to extract more utilization from them," Moghadam said.

Driverless cars also have the potential to remake the way that cities, roads and other infrastructure are designed and built.

"We're designing cars that are very different in a very short time horizon compared to real estate," said Mark Platshon, senior adviser with BMW i-Ventures Fund and a longtime investor in and adviser to technology startups. "Some cities may lose 30% of their cars to UBER. It's going to change things." Overcoming resistance to autonomous vehicles will be a challenge and will take longer to overcome than developing the technology itself, Platshon said.

Truck- as well as car-makers are making great leaps forward in the realm of autonomous vehicles, which hold the promise of safer roads, greater fuel efficiency and cleaner air, as well as creating greater efficiency in logistics and day-to-day business operations. "There are natural affinity groups for these cars: the elderly, for example," said Randy Rowe, ULI global chairman and chairman of Green Courte Partners LLC, a private equity real estate investment firm focused on niche real estate strategies.

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Lisa Brown

Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.