Personal car ownership is declining, and it is pressing developers to consider alternatives for onsite parking. In addition to a decrease in personal car ownership, as a result of public transit and ride sharing services, the possibility of driverless cars also decreases the need for generous onsite parking. Multifamily and office owners have been the most vocal about finding parking alternatives, but a new study from CBRE that looks at the future of retail, shows that retail owners are also looking at how changes in car ownership will affect the massive parking structures attached to many retail centers.

“It is a big question mark that everyone is trying to figure out,” Melina Cordero, head of retail research for the Americas at CBRE, tells GlobeSt.com. “We know that right now in new developments, parking structures are being built so that they are easily convertible. The answer is going to be unique for every property, depending on market conditions, demographics and demand locally. It is really to be seen.”

For retail developers, the option of creating adaptable parking is an easy change in the interim. Existing retail centers, however are a more difficult challenge. “One of the challenges with existing or older parking structures, if you think about big parking garages, is that the floors are slanted,” adds Cordero. “Those are big concrete slabs and those cannot easily be leveled off. New parking structures are being built with flat levels and a ramp, so they are being built with future conversion in mind. Older parking structures are going to need to be completely demolished. That is how people are future proofing to get ready for driverless cars.”

While finding a solution could prove difficult, activating the additional square footage could prove to be beneficial to retail owners by creating new forms of revenue. In some cases, that could mean converting the square footage to new uses that are in demand in the surrounding market. “It opens up a lot of potential new revenue streams for shopping malls, strip centers and retail assets like that where you have tons of square footage that you are not getting revenue from. The question is: what do you do with that space to generate more money,” explains Cordero. I think that is something a lot of people are thinking about. Will they convert that space into mixed-use, or will they create an outdoor space. People are really thinking about it and trying to figure out what is best in their market.”

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How Are Retailers Planning for Driverless Cars?

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