E-mobility is the future. But what does that mean for real estate?
In our latest publication, ‘E-mobility in the fast lane’, our award-winning Energy & Sustainability team explores how the growth of electric vehicles will impact real estate and what opportunities exist for landlords, developers and occupiers.
4 minutes to read
The electric car market is growing rapidly. At the end of February, over 215,000 pure electric vehicles (EVs) were on UK roads – and that figure rises to 455,000 if you include plug-in hybrids (PHEVs). 108,205 EVs were sold in 2020 across the UK, representing a 180% year-on-year rise, while PHEV sales rose 90% to 66,877.
That means that 10.7% of all cars sold in the UK in 2020 had some level of zero emission running capability and could be plugged in.
However, the UK largely lacks the key infrastructure necessary to support the continued growth of electric vehicle demand, but this challenge is also a sincere opportunity for landlords, developers and occupiers, who – if they act now – will be able to match demand with supply and increase the appeal of their real estate assets.
Read our latest publication: E-mobility in the fast lane: How the growth of electric vehicles will impact real estate
There is a growing need for investment
David Goatman, Head of Energy, Sustainability and Natural Resources at Knight Frank, explains: “We are seeing a significant rise in the adoption of electric vehicles across the UK, both by individuals and by businesses via their car fleets. This is a very positive shift for the economy as the Government looks to progress towards its Net Zero objectives in a crucial year, with COP 26 due to take place in November. As battery capacity increases, technology allows faster, more powerful charging points to become available, and the 2030 legislation looms closer, drivers will become increasingly inclined towards electric vehicles.
“However, this growing demand for electric vehicles requires much greater quantum and variety of charging points nationally. Across all kinds of real estate, from residential and retail to logistics and commercial offices, there is a shortage of charging points and a growing need for investment. As the shift to electric vehicles continues to gather momentum real estate asset owners need to consider now whether or not their assets have sufficient EV charging infrastructure to meet current and future occupier demand.”
The opportunity for landlords, developers and occupiers
One of the main themes discussed in our latest E-mobility report is the ways in which these shifts will impact real estate.
Petrol stations: Petrol stations are an area of future transition, with charging behaviour likely to replicate how we charge our other electronic devices – intermittently throughout the day and when needed. Existing petrol station sites, therefore, present interesting opportunities for future residential and commercial development.
The workplace: From an occupier perspective, workplace charging provides greater flexibility and convenience for staff and visitors, whilst alleviating range anxiety. Responding to occupiers’ needs demonstrates a receptive and committed landlord; improving tenant-landlord relationships and therefore the customer experience.
Residential: Air pollution disclosure is having an increasing impact upon residential property desirability, and in time, it will impact prices. Because buyers are able to see comparative air quality of the locations they’re considering, this will naturally drive decision-making, forcing residential developers to invest more heavily in EV infrastructure.
Retail: EV charge-points are a way to generate greater footfall and invite customers to spend more time at retail outlets. In fact, retail sites can experience a 50% rise in dwell times for customers charging an electric vehicle at the site, translating to an average increased spend to £80 per customer, compared to an average of £36, while CO2 levels can drop by 31 tonnes.
Logistics and industrial: Companies with large fleets, such as those in e-commerce and distribution, have a significant environmental impact. One emerging trend is for developers to purchase assets that may be existing retail parks on the basis that in time these sites will be transformed into last-mile delivery hubs due to their size and location. But sufficient grid capacity is crucial to the success of this.
To find out more, read out latest publication: E-mobility in the fast lane: How the growth of electric vehicles will impact real estate.
How we can help you
Knight Frank’s award-winning Energy team brings together a wide range of specialist expertise, serving clients across the rural, residential and commercial property sectors. The services we offer include:
- Procurement
- Strategy
- Valuation
- Renewable energy projects
- Renewable energy transactions
- Reporting and benchmarking
- Preparation and negotiation of terminal schedules
Our team of consultants work with a diverse group of clients including the generators, suppliers and users of both conventional and renewable energy, as well as policymakers, landlords, developers, investors and those affected by energy infrastructure.
Read our latest publication: E-mobility in the fast lane