Meet Neo, your AI-powered Co-GP.
The need for renewable energy infrastructure has permeated nearly every industry, and it’s becoming increasingly clear that this will have an impact on commercial real estate — namely, with the way investment partnership accounting software must adapt to this growing need. This is particularly obvious with the demand for EV charging infrastructure.
The National Renewable Energy Laboratory projects that by 2030, there will be 33 million electric vehicles on the road, and that means 28 million EV charging ports will be needed in order to support them. There will need to be an infrastructure in place for EV charging stations at workplaces, stores, restaurants, hotels, and more.
With this increasing demand, CRE professionals may find new opportunities in EV charging infrastructure, and investment partnership accounting software must adapt to meet these evolving needs. Let’s take a closer look at how.
Looking for an investment management solution that can streamline your processes and help you engage with investors? Learn more about Covercy here.
The EV Boom and Its Effect on Commercial Real Estate
In recent years, adoption of EVs amongst consumers has been rapid. In 2021, the Infrastructure Investment and Jobs Act funded $7.5 million in EV charging infrastructure, while the Inflation Reduction Act provided tax credits for electric vehicles. That means EV support equipment, like hardware, installers, and charging stations, are needed.
The EVSE market is poised to grow from $7 billion today to $100 billion by 2040, and a large part of this market consists of charge point operators (CPOs), which build, operate and maintain EV charging stations. CPOs are expected to increase to a staggering 65% of the total EV market by 2040.
While the upcoming growth of CPOs is undeniable, it’s also important to note experts expect a shift in segments where these charging stations will be built. Instead of needing more residential stations, the at-work segment is expected to rise, meaning that there will be an increasing demand for public charging stations.
How will this affect commercial real estate? Many CRE professionals will need to consider how to incorporate EV charging infrastructure into their already existing or to-be-built buildings. That means it will be important to include charging stations in parking lots or garages when designing new commercial buildings, or even investing in retrofits for existing ones. CRE professionals will need to include EV charging stations in many of their properties, and investigate regulatory or zoning requirements for installing these stations.
