23 October 2023

Real Estate Investors Push Into EV Charging Stations

The project is among the first of potentially tens of thousands of such charging stations across the country that will be necessary to support the growing adoption of commercial electric vehicles. 
While the charging of consumer cars takes place mostly in home garages or at small-scale chargers in parking lots or roadside stops, commercial vehicles are expected to require an expansive network of large, dedicated facilities with voluminous electrical capacities capable of powering up dozens or even hundreds of vehicles at a time.
  • The prospect of such overwhelming demand has attracted the attention of real-estate investors, existing landlords, and a growing number of EV-charging businesses that are eager to work with both. 
  • The rush of interest is banking on the opportunity to allocate billions of dollars to the emerging asset class of charging facilities to earn lucrative returns. 

$100 billion property giant Prologis sealed a huge EV charging station deal. It hints at a new opportunity for real estate investors.

At an industry conference in May, John O'Leary, the CEO of Daimler Truck North America, a manufacturer of electric trucks under its Mercedes and Freightliner brands, said $52 billion of investment in charging infrastructure was necessary to support the growth of electric commercial vehicles by 2032. 
  • A representative for the company, which confirmed O'Leary's remarks, said the estimate included the price of electrical-transmission upgrades and increased energy generation needed for widespread charging and did not factor in costs associated with buying or leasing the real estate where power and charging equipment will be installed. 
After An Embarrassing EV Charging Fiasco, Feds Offer $100M For State/Local  Gov't To Fix Busted Charging Stations - CleanTechnica

"We are at the start of what is a significant shift in the logistics transportation industry," Holland said.

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