EV’s influence on Commercial Real Estate
The Founders of EV Stealth Solutions have a very close history and connection with Commercial Property, having established a career in the sector for over 35-years combined. The chance to collaborate with leading commercial property owners, fund managers and developers was inevitable.
Commercial Property is not limited to office buildings, they also include logistic / industrial hubs, multi-family estates, retail shopping centres and commercial car park operations. Considering the “electrification” within commercial property to future proof assets is pivotal to attracting and retaining tenants, reducing the operating costs, as well as generating foot traffic across retail hubs.
There are some great insights from a report by Dr Henry Chin and his research team at CBRE Asia Pacific on #electricvehicles and its impact on commercial real estate (#CRE). Some key take aways for us at EV Stealth include:
Governments are looking to phase out ICE vehicles - some counties are looking to phase out sale of ICE vehicles as early as 2030. Counties like NZ, INdia and Taiwan are targeting 2040.
There is a chronic shortage of public charging infrastructure - global average sees only 1 public charge point for every 10 electric cars. Over 80% of public chargers are in mainland China and Korea.
Charging infrastructure is viewed as an amenity, rather than a way for CRE owners to scale and profit. It is currently difficult to quantify the return on investment when looking at implementing charging infrastructure. For retail centres, it is a great way to generate additional foot traffic by providing this amenity, however charging users could be a deterrent.
CRE owners look to partner with Charge Point Operators (CPO's) to generate steady revenue streams (rent) without taking on operating risk - given the amount of Venture Capital investing into charging infrastructure companies, a good way to derisk any operational risk as a commercial owner is to rent car parking spaces out rather than try operate.
Hydrogen fuel could take over EV’s before it's even really begun - refueling through hydrogen is much faster than charging electric vehicles, and recent years have seen the launch of hydrogen fuel cell vehicles in mainland China, Japan and Korea.
Industrial and Logistic hubs are great locations to build charging infrastructure to accommodate fleet transition and uptake. It also helps with decentralisation - gentrification through electrification!
The advancements in electric vehicle technology have led to a surge in their popularity, and it is imperative for commercial real estate stakeholders to recognise and adapt to this shift in the automotive landscape. Electric vehicles have the power to revolutionize the way we commute, work, and interact with our built environment. With zero-emission capabilities, reduced operating costs, and increasing ranges, they offer a sustainable alternative to conventional vehicles. This transition towards electrification is not solely driven by environmental concerns but is also supported by government incentives, improved charging infrastructure, and a growing demand for clean transportation solutions.
From a commercial real estate perspective, embracing electric vehicles brings new opportunities and challenges. The integration of electric vehicle charging infrastructure within commercial properties such as shopping centers, office complexes, and multifamily communities has become a necessity. The provision of adequate charging facilities not only attracts EV owners but also enhances the attractiveness of these properties in the market.
Forward-thinking developers, owners, Fund Managers and REIT’s have already begun to implement EV charging stations as a value-added amenity. By doing so, they demonstrate their commitment to sustainability, position themselves as environmental leaders, future-proofing their asset and tap into an emerging market of environmentally conscious consumers. The presence of charging infrastructure can also prolong consumer visits, increase foot traffic, and create additional revenue streams for businesses. However, it is crucial for commercial real estate professionals to approach the implementation of EV infrastructure thoughtfully. Factors such as charging station placement, load management, and future scalability must be carefully considered. Collaboration with EV charging experts, architects, and electrical engineers is vital to designing efficient and future-proof charging solutions.
It gives EV Stealth Solutions great confidence that the largest commercial real estate owners, developers, Fund Managers and REITs are looking at initiatives to accelerate and accommodate the #ev transition.
