Mall Foreclosures Up 11% – Due in Part to E-Commerce

Mall foreclosures continue to rise as retailers face more and more competition from E-commerce and a large rush away from enclosed malls.  Many owners are letting their loans default instead of trying to restructure as they see no easy future in a shifting economy.

These declining/failing properties not only cause problems for tenants, but also for the surrounding properties.  “If a mall closes or goes into decline, you’re going to see declining property values in the area,” commented Arthur C. Nelson, professor of Urban Planning and Real Estate Development at the University of Arizona. “The mall is a marker.”

One of the early casualties in the shift to E-commerce.

Getting out ahead: Regulating AVs

On the heels of USDOT announcing 10 pilot designees for testing AV technology, one state is getting out ahead of AVs.  Legislation proposed in Massachusetts would ” allow self-driving cars on public roads, but impose a mileage-based tax on their use, allow some large municipalities to ban them, and require all such cars to be zero-emissions vehicles.”  (Boston Globe, January 19, 2017)  As pointed out in the article, AVs currently fall into a legal gray area in Massachusetts and many states.

APA reports that Michigan, Arizona, California, the District of Columbia, Florida, Nevada, North Dakota, Tennessee, and Utah have statutes regulating AVs. (“Michigan joins small number of states with self-driving car laws.” – APA blog)

Article: “Mass law would tax autonomous vehicles by the mile,” by Dan Adams, Boston Globe, January 19,2017.

 

 

Envisioning Future Cities with Automated Vehicles Webinar

 

Mark your calendars for OAPA’s (Oregon American Planning Association) webinar on Automated Vehicles on Tuesday January 24th at 12-1 pm PST

Click here to register

More info on the webinar:

“Automated Vehicle (AV) technology promises to reshape the transportation system and the built environment in ways not seen since the introduction of the automobile over a century ago. By revolutionizing the nature of personal mobility and removing the need for passengers to be in the car at all times, AVs have the potential to dramatically impact roadway design and the built environment to yield urban spaces that are safer, more efficient, and attractive. However, unlike America’s first experience with the automobile, it is hoped that policy makers will recognize and take advantage of this opportunity to reshape our urban areas in ways that promote safe, sustainable, and people-centered environments. AV technology offers an opportunity to balance what have long been seen as conflicting goals of safer and more efficient transportation systems and urban environments founded upon the principles of sustainability and human-centered design. But the twin goals of efficiency and urbanity can be achieved only through proactive planning and investment by federal, state, regional and local transportation agencies.

This webinar will review the innovative work Florida Department of Transportation and Florida State University are doing to take the first steps toward envisioning the future in an AV world, a future that can yield attractive, people-friendly, efficient and safe urban environments. In addition, this webinar will identify near and medium-term infrastructure investments and policy decisions that could enable a smooth transition to a transportation system dominated by AVs. Few understood and foresaw the massive impact the automobile would have upon travel behaviors, transportation systems, and the built environment over a century ago. This session hopes to prepare and equip local governments with the tools necessary to take advantage of this remarkable opportunity to reshape the built environment into more livable communities.”

 

Warehouses Will Be Everywhere

As we continue to trend towards e-commerce and a range of delivery methods for products, warehouses – one of the key infrastructure elements of delivery – are going to both shift and proliferate.  A report from Colliers looks at these shifts broadly, but pertinent to this blog, there are sections on First Mile and Last Mile of delivery that outline the changes we will be seeing in the built environment.  Some takeaways:

  • Large consolidation of distribution facilities is happening as this facilitates logistics and the implementation of automation
  • Due to this consolidation, the size of facilities is greatly increasing – ‘First Mile’ facilities (these are distributions centers that are first accepting parcels from suppliers)  greater than 1 million square feet are becoming more commonplace. — Picture a single facility as large as 4-5 New York City blocks or 16-20 Portland blocks.
  • ‘Last Mile’ facilities (distribution centers that ship directly to customers) – on the other hand are locating in order to shorten and speed up final deliveries.  This is leading to smaller distribution centers (50-75,000 square feet) scattered around urban areas.

A great graphic that shows the complexity of new shopping and delivery methods is below.  Many forms of delivery and each has its own land use and transportation implications.

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First Driverless Transit Shuttle in U.S. is Up and Running

And the milestones keep coming.  Las Vegas just made active the country’s first AV public transit shuttle.  These type of fixed lines routes (transit lines) are obvious choices as early adopters as the environmental variables are limited.  The bus is small – 12 passenger – and the route is short but it is yet another step towards full automation of the transit system.

This type of vehicle is potentially going to be doing the heavy lifting for paratransit and shared trips in the near future.  Picture something like this coming to pick you up next time you use uberPOOL or Lyft Line.

E-Commerce?? – Depends on What you Are Shopping For

A new study in Transportation Research Record by Zhen et al. looks at the relationship between online versus in-store shopping based on the types of good you are shopping for.  Based on a survey of shoppers in Nanjing, China, they differentiate between experiential goods (ones with “traits that cannot be determined until the product is used” – such as clothing) and search goods (ones  “that consumers can ascertain fully before use” – such as electronics).  Unsurprisingly, they found more online purchasing happening with search goods than exchange goods.  A few other takeaways:

  • Cost consciousness is related to lower in-store clothing and electronics purchases
  • Shopping enjoyment increases in-store purchases for daily goods, but not for electronics – so “a particular shopping attitude does not always affect purchasing behavior for different products in the same way.”
  • More education is related to less in-store shopping and more online shopping for books and clothing

In terms of the effect on the overall transportation system, the results are not clear cut.  They state that “If returns of unsatisfactory products and freight transportation are considered, online purchasing generates even more travel demand. Therefore, transportation planners should expect growing challenges associated with the proliferation of Internet sales.”

E-Commerce: Brick-and-Mortar Slide Continues – 12% Drop in Store Trips This Past Holiday

A recent article in the Wall Street Journal documents the continued rise of e-commerce coupled with the inevitable slide of brick-and-mortar stores.  A few key numbers:

  • Overall, online holiday sales increased by 11% over the previous year while brick-and-mortar sales increased only 2.7%
  • JC Penny brick-and-mortar sales dropped by nearly 1% while its online sales grew by double digits.
  • Amazon was the clear leader in online sales with 38% of all online revenue

Probably the most striking number for the subject of this blog, brick-and-mortar shopping traffic (as in the number of times people went into stores) declined by 12%.  That number – if it continues – will inevitably lead to a drop in the amount of brick-and-mortar stores and major shifts in land use and transportation demand.  This will potentially also decrease the vitality and activity around commercial areas.

AV’s Future is Shared (at least initially) – Views from CES 2017

CityLab has posted a report from this years Consumer Electronics Show and – unsurprisingly – the roll-out of AV’s seems to be focused on shared fleets and they will focus on freight and high occupancy transport.  Cost seems to be the largest factor early on with AV technology being cost-prohibitive for individual ownership (although Tesla might have something to say about that).  Another reason is simply the ability to monitor and modify cars and algorithms – much easier to do roll-out and testing in limited contact points via larger shared fleets.

This is not to say that shared vehicles are the only future for AV’s – but thier initiation happening as shared vehicles is promising and gives a bit of time to figure out how best to promote and cement that future over individual ownership – probably the most critical issue in avoiding a dystopian future.

Chrysler Portal - Self Driving Car - Jae Hong/AP
Chrysler Portal – Self Driving Car – Jae Hong/AP

E-Commerce and the End of Department Stores…

Macy’s and Sears are closing stores throughout the country (250 stores in total) as trends continue to push against traditional bricks-and-mortar retailers.  While nobody suggests bricks-and-mortar will completely disappear, this is yet another step in the continuing shift away from traditional retail.  Previously considered anchor tenants that drove (almost literally) shoppers to large malls, the retail landscape has shifted towards smaller, more nimble, and often e-commerce linked retail.  This will have large implications on the amount of retail in the country, its distribution, and the size of parcels/spaces.  From recent discussions we have been having with industry experts, it seems that a quality sort is just beginning, where size and location of retail may start to give way to quality of experience and place.

DOT Report on Smart Cities Challenge is Out…. (but effect on cities is still missing)

USDOT just published a report on the Smart Cities Challenge process and lessons learned. They list six key categories of these lessons: How we move, How we move things, How we adapt (in terms of how these technologies affect climate change), How we move better (data, sensors, and monitoring), How we grow opportunities for all, and How we align decisions and dollars.

Starkly missing from this list is how all of these issues and technologies are going to be changing city form, development, and design – a key concern of this blog and the work we are doing.  Without this layer of understanding and research, there could be devastating effects upon lives, economies, and regions.  We need to continue to expand the conversation beyond the applications and development of the technologies itself.

No One Likes a Right Hook

Right hooks are just one of many issues that people on bike confront when trying to navigate city streets imperfectly designed for bicycle transportation and it seems that this is one area that autonomous vehicles don’t yet have an answer for, according to this article from the Guardian.  If driverless cars only had to deal with other cars, then behavior and safety could be much more regulated, and in fact the vast safety savings anticipated from autonomous vehicles comes from a reduction in vehicle to vehicle, or even solo vehicle, crashes.  But, cities are also made up of people who walk, bike, and roll, presenting different challenges due to speed, mobility, and the fact that the goal of walking, biking, or rolling is not always to maximize speed.  And these other modes often have their own infrastructure that varies by block and intersection and part of town.  For cycling, infrastructure ranges from simple bike lanes to protected bike lanes to no dedicated infrastructure at all, adding to the complexity.  Figuring out how driverless vehicles will complement biking, especially as a worldwide resurgence in this sustainable and space saving form of transportation is taking place, will be especially important to get right for the sustainability of our cities.