OCTOBER 20238 PropTechOutlookOPINIONIN MYEV Charging at HomeBy Grant Ervin, Director of ESG and Innovation, S&B USA T he rapid growth in ownership of electric vehicles is requiring the real estate and property technology space to take the activities in electric mobility into deep consideration. Though real estate investors and owners are not transportation experts, it is crucial for them to become aware of the basic needs of the accelerating EV market. At the macro level, three main trends are occurring in the motorized transportation sector influencing real estate investors,1) automation (we've all heard of autonomous vehicles or "robot cars", 2) shared platforms (think of Uber or Lyft), and 3)Electrification ( think of your boss's Tesla or eco-conscious college roommate's Nissan Leaf). For the sake of this conversation, we want to focus on the transition from internal combustion engines (your gas or diesel vehicles) to fully electric vehicles. The electrification transition creates several technical challenges and opportunities that commercial and residential property owners need to consider, local governments can help support, and solutions providers can help accelerate. According to the U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy, eighty-five percent of all charging will occur at home. While recent federal investments like the Inflation Reduction Act (IRA) and Infrastructure Investment and Jobs Act (IIJA) are working to support the needs of corridor charging and commercial availability, there is a growing need for owners of multi-unit developments (i.e., apartments, condos, and co-operatives) to enhance their properties by supporting the "at home" charging needs of their residents. What are the benefits of supporting EV charging on your property? 1. Staying Competitive. As the market of EV ownership grows, operators will look for living arrangements that support the needs of their mobility choices. The "in-building" market will quickly move from an attractive amenity to a "must-have" for many tenants. 2. Attending to Sustainability Needs. Sustainability in this case is not simply the environmental benefit of zero tailpipe emissions, but also considerations such as obtaining electricity from renewable sources and social justice benefits that ensure that multi-unit development residents have access to the same amenities that a single-family dweller might have available to them. Such considerations may also influence various forms of property investors that are looking to manage the environmental, social and governance implications of their portfolio investments. 3. Managing Operating and Capital Investments. Installation of charging infrastructure should not be done as a "one-off" activity, but thoughtfully integrated into the capital investment considerations and operating decisions of a real estate asset. While there is an upside to the attracting and retention of clients, infrastructure investment should evaluate construction, technological and ongoing operational risks. What considerations do property owners need to make when considering EV Infrastructure Investments? 1. Property Ownership Structure and Site Location: The legal configuration of the property can require various forms of approval and numerous methods of deployment of charging Grant Ervin
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