Urban transport is changing – developers must too

The self-driving car may be some away off, but a combination of urban policy, transport use and technology is changing not just how we navigate our cities, but how we build them. As the boundaries blur between working, living and playing, and with them the distinction between private and public spaces, it’s high time developers added ‘moving’ to the end-user agenda. What, then, do these changes mean for real estate developers and how might commercial real estate be affected? It makes sense to start with urban policy as it is more predictable than adopting new technologies or latest trends in commuting behaviour. Changes to land use policies also tend to have an immediate impact on real estate development. After the London Plan shifted from minimum to maximum parking requirement standards, the number of parking spaces per unit of residential development applications fell 50%, and 60% of developments in inner London were built totally car-free. Car-free policy Current drafts of the London Plan are more ambitious (even if national planning policy appears to be moving in the opposite direction), proposing a car-free policy for new developments within the Central Activities Zone and in areas of excellent public transport accessibility. The goal – a city where 80% of journeys are made either by active (cycling or walking) or public transport. But it’s worth noting that planning tools will need to adapt as guidelines around density and analysis of catchment areas still largely rely on static data, based on assumptions around public transport provision or driving times. Secondly, responding to changing transport use isn’t just about complying with planning frameworks – it’s about meeting changing end-user expectations too. City dwellers increasingly expect to switch between transport modes without friction, often with little consideration of which methods are public or private. New models of transport provision are emerging, including on-demand buses, ride-hailing, car-sharing and micromobility (eg scooters and dockless bikes). How we commute is no longer just about getting from A to B – it’s increasingly a lifestyle choice. Some developers are responding to this, with 22 Bishopsgate, for example, collaborating with Brompton to offer on-site bike hire. Lowering demand for parking Experimenting with some of these lighter and quicker transport interventions has benefits beyond just meeting end-user expectations. Greater use of active and public transport means less demand for car parking and, as a result, more developable land. New transport options can also help mitigate the potential for reduced catchment areas in locations where parking is restricted or public transport is lacking. The regulatory and geographical consistency of these areas lends them the development, trial and early even adoption of new mobility services, from electric bikes to driverless vehicles. But what if rather than simply meeting ambitious transport targets and changing commuter expectations, developers sought to exceed them? That is, rather than focusing on why end-users should travel to their destination, developers looked at how they do so. This could mean working with retailers on mixed-use sites to offer rewards for those who arrive via active transport, or encouraging office occupiers to promote agile working to smooth peak demand. Making the most of change The result – healthier and happier employees, a positive contribution to public health, and the ability to leverage sustainable transport and its benefits as a key differentiator for occupiers. The days of beautiful places with ugly air quality are limited. The emergence of new models of transport provision may mean developers feel they have less control over the supply of parking infrastructure. However, with greater understanding of commuter behaviour, and the ability to collaborate with transport providers, architects and occupiers, there’s no reason why forward-looking developers shouldn’t be able to make the most of changes underway. Kat Hanna is associate director, urban change, at Cushman & Wakefield. Pic credit: Matthew Chattle/REX/Shutterstock