Automated Technology: Driving Change in Real EstateCBRE GLOBAL INDUSTRIAL as future vehicles become increasingly autonomous, we will see trickle effects on housing and retail, and direct effects on logistics facilities, from self-driving trucks. In this latter area, one of the major change components will be labor. In the U.S., labor accounts for approximately 75% of the cost to move a full truckload from L.A. to New York.1 With the adoption of driver-less trucks, the trucking industry will be able cut its labor costs, shifting its focus toward building technological systems that can meet the demand for goods more efficiently while focusing more on inventory and occupancy costs. Meanwhile, trucking has seen a drastic decline in available drivers in recent yearsa result of high turnover due to demanding hours and the safety risks of the job. Trucking companies are having difficulty finding younger workers, which directly affects their cost structure. When trucks are converted into mobile computers, companies may have better luck attracting a younger labor pool, as the tech-oriented generation may be more inclined to operate enhanced big rigs. Self-driving vehicles have the potential to significantly expand the daily coverage trucks can provide to a logistics operator. Per U.S. federal regulations, truck drivers are restricted to 70 hours per week, effectively limiting them to a maximum of 3,000 miles of travel, or 400500 miles per day. Automated driving would allow these restrictions to be relaxed, increasing both distance 1. http:/techcrunch.com/2016/04/25/the-driverless-truck-is-coming-and-its-going-to-automate-millions-of-jobs/The growth of e-commerce and the emergence of these technological advances has ushered in an evolution of the physical supply chain.this has spurred a new era of modern site selection and design for investors and users. Scott Marshall, CBREs Executive Managing Director of Industrial with compression in industrial and distribution cost structures, e-commerce sales are likely to increase.Autonomous trucking technology is currently being tested all over the world. In April 2016, a caravan of about a dozen self-driving, semi-trailer trucks traveled more than 2,000 miles across Europe, crossing four national borders. The convoy was organized by the Dutch Ministry of Infrastructure and the Environment, and included rigs from six manufacturers. The trucks journeyed from manufacturing facilities in Belgium, Denmark, Germany and Sweden to the port of Rotterdam in the Netherlands, using a method known as “platooning,” in which they form a column, following one another closely (at about 30 feet) at a constant speed, connected by Wi-Fi. The trucking industry is bullish on this technology, and according to a survey done by Eyefortransport (EFT), 59% of respondents anticipate driver-less trucks in their operations in the next 9 years.2In Asia Pacific, several governments, in partnership with private companies and universities, are road testing self- driving technology, with Australia, Singapore, Japan and China leading the region. In late 2015, Volvo partnered with industry bodies to road-test autonomous vehicles in southern Australia. In Singapore, the government has fast-tracked self-driving technology with the help of technology start-up nuTonomy; they tested fully autonomous taxis in Q2 2016. Local testing has also been done in China and Japan, helping to pave the way for autonomous vehicles in both the consumer and industrial markets. Ford and local partner Changan Auto- mobile completed a 1,200 mile road test from Chongqing to Beijing in six days. While many of these pilot studies have been for the consumer, they can easily be adapted to the industrial transportation market. Singapores Ministry of Transport (MoT) and Port of Singapore Authority (PSA) aim to utilize the platooning method to increase logistics efficiency and reduce traffic congestions in the small city-state.The rise of self-driving trucks will lead to growth in IT infra- structure and data centers, as there will be a need for real- time traffic data and for providers to be located near their end users. This proliferation will support the development of the “internet-of-things,” with electronic sensors and software in devices, vehicles, buildings and other items collecting and exchanging data. Last-mile deliveryAutonomous technology will also have a significant impact on last-mile delivery. It is unlikely that driverless trucks will be able to handle the doorstep delivery of parcels anytime soon, but we may see the automation of the delivery support vehicle. Some speculate that automated handling technologies may be able to deliver parcels to fixed loading stations. In addition to the fixed locations, driverless trucks may even act as mobile 2. Eyefortransport Reports. Supply Chain Hot Trends Q1 the freight transportation industry could potentially save upwards of US$170 billion as