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- ⚡ EV Charging: 💪 Future-proof your property
⚡ EV Charging: 💪 Future-proof your property
Ben Apple
April 11, 2023
Hi friends - I'd like to extend a special welcome to the new subscribers this week.
As this is a new and growing newsletter that breaks down a new real estate trend every week in 5 minutes or less, I'd love to hear feedback and let me know what you'd like to see in future trend breakdowns.
Please drop a reply to this email or click the feedback form at the bottom to help me better meet the needs of this growing community!
Okay, on to this week's trend breakdown.
Here’s what you will learn in today’s email:
Should you build or invest in EV charging at your sites?
How do you get started?
What financial incentives are available?
What are the costs and benefits to building EV charging stations?
And more!
👉 Problem
The future of EV will require significant charging infrastructure. Electric vehicle sales are expected to grow at 25% year-over-year for the next 5 years.
⚡ Big Idea
There is a responsibility and opportunity for real estate owners to provide EV charging stations to keep up with the demand of EV and provide this amenity (soon-to-be necessity) for tenants.
📊 Charts and Data
It is estimated that the US will have over 25 million electric vehicles on the road by 2030.
There is currently a lack of EV charging infrastructure to support the growth. McKinsey estimates that we will need 20x more EV charging stations by 2030.
This map charts all charging stations across the US. Clear gaps exist across rural America.
🔥 Opportunities
Provide EV charging station as amenity in residential communities
Bella Victoria, an apartment complex in Arizona, provides EV charging for all residents
Offer EV charging station as a service at office and retail properties
7 eleven offers 7Charge for customers to charge at selection locations
Partner with EV charging network providers
Simon Property Group partnered with EVgo to offer charging as a service
Drive foot traffic to your property
EV drivers will seek out EV charging locations and have time to shop
Receive subsidies and incentives to build
💼 Case Studies
Clarksburg Condominium - A case study analysis on cost and financial incentives
Wal-Mart - Installed DC fast chargers at 280 locations, with plans to roll out EV charging at all locations by 2030
Simon Property Group and EVgo - Case study of retailer partnership with EV charging network
Columbus Ohio case study of multi-unit dwelling (MUD) EV charging stations
🤝 Players
EV Charging Networks
ChargePoint - the world's largest network of EV charging stations in North America and Europe
Tesla - Global supercharging network with 40,000 locations
Loop - Raised $60M to offer turnkey EV charging solutions to property owners
EVgo - EV fast charging network
Blink - Turnkey EV charging stations for businesses
Commercial
Simon Property Group - Launched EV charging at mall locations
Subway - The sandwich franchise is rolling out EV charging "Oasis"
Residential / Multifamily
AvalonBay - Multifamily developer providing EV charging in new developments
✨ Predictions
Increased demand for EV charging infrastructure, especially across rural America
Integration of EV charging at parking facilities
EV charging capabilities will lead to increase in property valuations
Further government financial incentives will incentivize developers
⚠️ Risks
Potential high upfront costs associated with EV charging install
Changes in technology may impact future demand
While EV charging may attract premium tenants, the ROI is not guaranteed
Regulatory codes and enforcement for EV charging may change
✅ Key Takeaways
EV charging stations can serve as an amenity for tenants with potential to generate ancillary revenue
Many financial incentives and business models exist to help fund the cost
EV charging may help attract premium tenants
Restaurants and retailers may attract additional traffic by offering EV charging
Not preparing for electric vehicle infrastructure may cost you in the long run - take advantage of incentives now to future proof your property
🧐 FAQ
What are the different types of charging?
There are 3 types of charging stations.
Level 1 - Slowest charge, at about 3-5 miles per hour of charge. Mostly for home use and works with typical 120-volt outlet.
Level 2- Faster than level 1, charging between 12-80 miles per hour. Needs 240-volts, like your typical large appliances, such as air conditioner or dryer.
Level 3- Fastest charge - converts AC to DC and can charge and empty battery to full in about 30 minutes.
What are the associated costs?
Level 1 charging is typically less than $3k, as it is the slowest option, running on a typical 110V.
Level 2 charging cost averages about $6,000 per station - this is the most efficient for multifamily and commercial properties.
Level 3 charging is the most expensive, and the fastest commercial grade option, averaging about $50,000 per station.
What business models exist for real estate owners to build EV charging?
Offering charging stations can be quite an extensive process, from site design and permitting to grid connection.
The owner can choose to self fund, work with a Charge Point Operator and keep 100% of the profits.
The owner can also choose to let the EV charge point operator fund and install, with a profit share.
The last option is a hybrid in up front costs and profit sharing.
What financial incentives are available?
There are many federal, state, and local incentives and grants to help fund EV charging stations. A list can be found here.
🔗 Additional Resources
McKinsey - Report on EV infrastructure
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