Driverless cars are inching closer to becoming a reality: on-road testing is well underway in the US, while the UK had its first taste in April when tests of driverless pods began in North Greenwich, London.

Given it is a question of not whether driverless cars will appear on British roads, but when, this is a good time to consider the potential positives, plus the challenges, this new generation of vehicles poses for out-of-town retail.

If driverless cars become mainstream the most immediate impact could be a significant drop in demand for car parking space at out-of-town retail schemes. If you can get your car to drop you off, return itself home (or to another location) and collect you when summoned, there’ll be no need to have car parking in the immediate vicinity of a retail centre.

This would potentially enable landlords to transform former parking spaces for alternative uses, such as additional retail and leisure space or residential development. Even if on-site parking is still required it will take up much less room: cars will drop off their passengers then park themselves in spaces immediately abutting each other, with no need to leave any space between vehicles to allow people to exit.

But there could be challenges too. Many consumers choose out-of-town retail parks because of the ease of getting there and the availability of free or cheap car parking compared to high street or city centre locations. With driverless cars potentially removing this advantage, as it will be just as easy for your car to drop you in a town centre, out-of-town landlords will need to reassess what makes their schemes an attractive place to shop.

Many are already embracing this approach by enhancing the food and beverage to increase dwell time and give consumers an experience beyond simply shopping. Reduced car parking provision on some parks will allow developers and investors to potentially create even more mixed, vibrant and in turn more attractive retail destinations.

Driverless cars could also be an opportunity to create new income streams. Electric vehicles require charging and landlords could establish their out-of-town retail schemes as local charging hubs. This is an option that many of the retail parks and shopping centres Savills manages have already decided to explore and we are currently working with POD Point, the UK’s leading provider of charge points for electric and hybrid cars, to promote electric vehicle charging across all our UK sites. However, we are also conscious that given the technology is still evolving, it is important not to commit too early to one type as this will no doubt evolve further over the next few years.

Essentially, driverless cars present a mix of potential opportunities and challenges. For out-of-town developers and investors it is perhaps too early to say exactly what impact autonomous vehicles will have on their retail portfolios. What is apparent, however, is the need to consider future-proofing current developments by designing in flexibility and the ability to reposition car parks for other uses at a later date. This is particularly true of multi-storey car parks, and will help avoid expensive re-purposing in future.

Further information

Read more: Savills Spotlight: Retail Revolutions