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In 1998 I found myself developing strategic properties for mobile phone providers in four states. I was at the beginning of a trend that was taking off due to the mobile phone industry boom. Consumers were buying cell phones and wanted them to work everywhere, and cell phone service providers were in a rush to increase network coverage in every market. Thousands of new telecom sites were urgently needed in the cities, suburbs, public places, highways and just about everywhere to satisfy their mobile phone customers. I was the guy finding the strategic sites and leasing them, then managing the architects, engineers, permitting and construction work to have them installed on rooftops, in parking lots, in strategic urban spaces, near highways and in numerous other locations.
The telecom providers paid good money to lease those strategic sites, and they still do today. They engaged in long-term leases and paid a premium for strategic sites. While there are always multiple locations to choose from in the same areas, the real estate developers, landowners, property managers and real estate brokers who knew about this trend were able to benefit from the window of opportunity by positioning themselves to secure long-term, profitable contracts by leasing portions of their properties that were not producing income, such as rooftop areas, rear parking lot locations and such.
I’m now in the commercial real estate development business developing primarily new multifamily buildings in urban areas, and I see a similar window that will open for a short period of time relating to the new passenger drone vehicle trend that is about to boom. Numerous landing sites will be needed in urban and suburban areas, and property owners will have the ability to lease their rooftops, portions of parking lots and other strategic locations to allow the drones to land there. In every area there will be a need for a limited number of landing pad locations. The property owners who are aware of this and ready to capitalize on this opportunity will be those who benefit most by positioning themselves strategically ahead of time.
Many are not aware of the advances in technology or of the fact that passenger drones are already flying in other markets. They don’t know the benefits that passenger drones will provide in transportation, such as reducing environmental contaminants, reducing traffic accidents, traffic congestion and noise pollution, and transporting people faster, more safely and easily than current antiquated traffic system. Because they don’t believe that the change is coming, they’re not preparing to capitalize on the real estate benefits that will be available as a result of the new technology.
At one time, I would have never imagined a wireless mobile device that you can use as a phone, a camera and a computer with countless applications and for communicating with people anywhere in the world. Now, my kids have never used a corded telephone or public phone, and it’s hard to imagine a world without our mobile devices. Passenger drones will have a similar effect. We will wonder how people lived when the primary means of transportation was the automobile and when it took so long to go from place to place and we had to deal with traffic jams, accidents and so much pollution. The predecessor of today’s mobile phone was the beeper. You couldn’t talk through it and there were no apps available; you simply received a wireless signal that caused phone numbers to show on the screen. In a similar way, today’s first passenger drones are the predecessors of the more advanced drones that will enhance our transportation in the next few years. As mobile phone technology expanded, everyone had to have one as the technology increased — so it will be with passenger drones.
Because I see the change and I’m in the real estate development business, I’m taking certain measures to prepare so that I can benefit from the real estate opportunities that will be directly related to the deployment and expansion of passenger drones in our society. You can, too. Consider:
• Outfitting a rooftop of your building with a passenger drone rooftop landing pad.
• Purchase a passenger drone and park it on the roof to designate your building as a landing site for future passenger drones once regulations are approved.
• Work with lobbyists and FAA regulators to assist with regulations for passenger drones in the communities where you own property.
• Work with your property locations’ local governments to assist with regulations for passenger drones.
• Learn about and stay up to date with the latest technologies, regulation approval status, new passenger drone models, approval statuses and industry improvements.
• Network with passenger drone manufacturers, companies and organizations that are in the process of creating this new transportation system.
Passenger drones will have a significant positive impact on transportation and in our society. It will also create opportunities for the real estate developers, landlords and professionals who can find, arrange, design and lease sites that will facilitate the use of drones. Those of us who are well-versed in the technology and prepare in advance will be in the best position to capitalize on these forthcoming opportunities.