Real Estate’s Shift To EV Charging Faces Major Hurdles

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Installing EV charging stations at commercial properties is challenging due to significant barriers posed by the strained electric grid. Plus, smart vents can boost HVAC efficiency and control without needing a full system overhaul.

Real Estate’s Shift to EV Charging Faces Major Hurdles

There are significant advantages to installing electric vehicle charging stations at commercial properties. But it isn’t always as easy at sticking a few charging stations into the parking lot. Property owners are discovering noteworthy barriers to adding EV charging infrastructure, the most considerable one being limitations of the electric grid.

A survey by Xendee, an EV charging and microgrid design services provider, reveals that 75 percent of EV charging station developers and operations say electric grid limitations present a significant hurdle to deploying commercial charging infrastructure. 

The challenges are consistent across multiple types of would-be developers and operations, including energy companies that might offer chargers at fueling stations and shipping companies like FedEx looking to install chargers for fleets of commercial electric vehicles. The same problems extend to commercial real estate assets like offices and multifamily buildings.

The strained electric grid is a well-known problem, posing a significant obstacle to achieving a sustainable economy. This issue extends beyond commercial real estate and electric vehicles. The Rapid Energy Policy Evaluation and Analysis Toolkit projects that U.S. domestic electricity demand will surge 18 percent by 2030 and 38 percent by 2035. This marks a substantial leap compared to the modest five percent increase observed over the past decade.

The rallying cry to 'electrify everything' is inspiring, but the reality is far more complex. Electrifying transportation and various facets of American life, including real estate, hinges on a massive expansion of renewable energy. This transformation requires a substantial and costly overhaul of the U.S. electric grid, including constructing more high-voltage transmission lines to carry electricity from rural wind and solar power plants to where it's needed most.

Overhauling the electric grid will also be enormously expensive. According to a study commissioned by the California Public Utilities Commission, California alone will need to invest up to $50 billion in distribution grid upgrades by 2035 to meet its ambitious electric vehicle targets. And that's just for electric vehicles. This figure doesn't even account for policymakers' other electrification goals, such as updating commercial building mechanical systems.

If commercial property owners want to install electric vehicle chargers, many may have to take matters into their own hands. Ironically, some building owners have resorted to installing fossil-fuel-powered generators to run EV charging stations. The logic here is curious, as buildings aim to boost sustainability but face such a hurdle in acquiring green energy they resort to the fossil fuels they’re trying to eliminate.

What’s Happening in Commercial Real Estate

X marks the spot
According to the San Francisco Chronicle, X, the social media platform formerly known as Twitter, has hired JLL to market its 800K San Francisco headquarters at 9th and Market Street for sublease. The listing of the X HQ is the largest block of tech space to be put up for sublease in the city.

Multifamily expense blues
A Moody’s Analytics study of income and expense data across more than 3,500 apartment properties reveals that the increase in dollar amounts for multifamily expenses like payroll and benefits, utilities, and repairs and maintenance have been drastically higher in the past year than historical averages.

Propmodo Technology

Traditional centralized HVAC systems often suffer from inefficiencies due to their reliance on a single thermostat. Smart vents can significantly improve systems in smaller buildings by providing more precise temperature control in various zones. When integrated with smart thermostats, smart vents enhance energy efficiency without requiring a complete system overhaul.

Check out this week’s Propmodo Technology focus on HVAC and Indoor Air Qualitywith the support of our friends at Partner Engineering and Science, Inc.

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