The Electric vehicle (EVs) industry in the U.S. has shown an impressive trajectory, consistently outpacing other automotive categories. Remarkably, in 2022, North America saw a year-on-year increase of 49% in EV sales, despite the overall new car market contracting by 17%. This rapid expansion is projected to maintain its pace and perhaps even intensify, leading to an increasing demand for EV charging facilities.
Significantly, the Federal government is throwing substantial support behind this infrastructure development. The National Electric Vehicle Infrastructure (NEVI) program, along with the Inflation Reduction Act of 2022, have become key drivers in advancing this cause. These initiatives have catalyzed the acquisition and ownership of EVs and fostered the development of a widespread charging network, crucial for mainstream adoption of EVs.
However, a noteworthy aspect of EV charging is that a major portion occurs at residential or office locations. According to the US Department of Energy (DOE), around 70–80% of all EV charging takes place at home or at work. This implies that EV users are looking for and expecting the ability to charge their vehicles conveniently in these locations. Consequently, EV charging facilities are poised to become indispensable amenities in multifamily, commercial, and workplace properties.
Real estate developers must anticipate this need and ensure they incorporate EV charging stations into their offerings. These Level 2 (240V AC) and Level 3 (high-capacity DC fast) charging stations are set to become a key factor in attracting and retaining tenants. The question then arises, how should property owners adapt to this new requirement?
Pivoting Property Amenities To Match Current Demands
Staying Competitive: To remain relevant in the changing real estate landscape, properties need to offer amenities that align with modern requirements. The increasing consumer preference for properties equipped with EV charging facilities indicates a promising opportunity to enhance rental value.
Simplifying Installation: While the installation process may seem complex, there are numerous end-to-end solution providers in the market that can help navigate the technical, legal, and construction aspects of the task, effectively transforming ordinary parking spaces into EV charging points.
Financial Incentives: There are several federal and local government subsidies, rebates, and credits available that can help offset installation costs. It's crucial to leverage these opportunities swiftly, as these incentives may not be available indefinitely.
Sustainable Business Decisions For a Green Future
Impactful Investment: Installing EV charging stations in commercial, multifamily, and workplace properties is not only a savvy investment for developers but also contributes to the reduction of greenhouse gas emissions. It aligns with escalating public demand for sustainable transportation alternatives.
Meeting Global Demand: With worldwide demand for EVs expected to surge, the urgency to equip properties with Level 2 and Level 3 charging stations will only increase. Early action ensures readiness to cater to the EV requirements of future tenants while taking advantage of available financial incentives before they expire.
With the ongoing surge in EV sales, the incorporation of EV charging facilities in multifamily and commercial properties across the U.S. is no longer optional. This step is crucial to cater to the growing demand for EV charging, keep properties contemporary, competitive, and relevant, and participate in the global effort towards a greener and more sustainable future.
At GAINCRE, we're not just observing these changes; we're leading them. We've anticipated this seismic shift and responded by developing an ESG-forward portfolio of properties equipped with robust EV charging infrastructure. Our portfolio is a testament to our commitment to sustainability and our foresight in embracing the EV revolution.
If you're interested in aligning your investments with the future of sustainable real estate, reach out to us at TAD@GAINCRE.COM. Join us in paving the way for a future where commercial real estate and environmental sustainability go hand in hand. There's no better time to act than now. Together, let's drive the change towards an electric and sustainable future.