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Innovations in Transportation Pose Potential Pitfalls for CRE

Wednesday, August 22, 2018   (0 Comments)
Posted by: Irfaan Ramzan
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With a population of just over 500,000, along with an average growth rate of 1.42%, Sacramento’s is expected to reach 2.2 million people by 2060. The desire for fast, easy and energy efficient forms of transportation has become increasingly more of a necessity. Getting through a congested downtown area without the frustration of parking your own vehicle at every meeting or stop you make, is certainly accomplished by the use of the city’s new bike share program, JUMP Bike. Cities including Sacramento and West Sacramento have launched JUMP Bike programs and for as little as one dollar you can go about your day while saving time, money and traffic induced stress.

During the BOMA Sacramento’s Advocacy Luncheon on July 19, we had the honor of having West Sacramento’s Mayor Christopher Cabaldon address the progress and future plans for his West Sacramento. The Mayor highlighted West Sacramento’s expansion and innovation related to alternate forms of transportation in the very near future. He praised the successes of the city’s new bike share program and noted that he personally uses it very often. Mayor Cabaldon also noted that changes in the way people use transportation are happening very quickly, referencing the city of Pittsburgh’s early adoption of self-driving Ubers.   

In addition to the JUMP bike program, a company called Bird recently showcased their battery operated single use scooter on April 11, 2018 at a Sacramento’s Kings game. The scooter travels a maximum 15mph and can be used by any registered user through Bird’s mobile app to access any Bird scooter found on the street that is not being used.

While the interest in alternative forms of transportation grows, so do concerns over liability.  For the commercial real estate industry there are specific concerns related to a property owner’s liability and responsibilities when these shared transportation devices are left on premises. These are relatively new programs for the Sacramento Valley area, nevertheless it’s advantageous to take note of challenges other cities are experiencing with similar programs.

For example, KCRA recently reported there seems to be confusion regarding where the scooters are to be used.   Bird specifically instructs riders to use the bike lanes when available and not to use sidewalks, however pedestrians often find themselves sharing sidewalks with scooter riders.  Cities such as Oakland and Los Angeles where Bird scooters are currently offered have also reported issues with rider misuse including improper parking on private property. 

BOMA Greater Los Angeles is active on this issue and has met with representatives from the City of Santa Monica regarding concerns voiced by area property owners. BOMA GLA states that, “to have Bird [Scooters] laying around commercial office space and in walkways is unacceptable to our membership.” A June 13,, 2018 article by Bloomberg News raised another concern stating, “In recent months, people hurt riding (or hit by) scooters in San Francisco and Los Angeles have been calling legal firms to file claims. Smelling opportunity, firms have even carved out dedicated spots on their websites urging people to file scooter-related claims.”

As these alternative modes of transportation continue to grow, we will closely monitor this issue to provide our members with the latest information and resources.  Innovation in transportation is an important focus for our communities, and we look forward to seeing how these programs grow and shift the way we think about transportation.

 

 

 

 

 

 

Irfaan Ramzan
Property Manager
Cushman & Wakefield
3255 W. March Lane, Suite 230
Stockton, CA 95219