Eight Reasons Why CRE Owners Need to Think About EVs Now

The year 2035 may seem far away, but it’s really only about ten years out. And, currently, that’s a significant date for CRE investors, owners, and developers because a number of states are already planning the end of internal combustion automobile sales, according to Money.

The list of eight currently includes California, Maryland, Rhode Island, Massachusetts, New Jersey, New York, Oregon, Washington, and the District of Columbia. All have large coastal areas that stand to face some of the worst exposure to climate change, hence the push to reduce emissions.

And then, Virginia, where Governor Glenn Youngkin says they will not ban sales of gas cars, have emissions standards tied to those of California, which are the strictest in the country. Delaware and Colorado haven’t adopted the 2035 ban, but 82% of cars sold in 2032 have to be zero emission models. New Mexico also plans on targets for sales of zero-emission cars.

The move by states, particularly California, which is an enormous domestic market, will likely push manufacturers to move to electric car manufacturing. Some manufacturers are already moving toward eliminating gas-powered vehicles. GM expects to do so by 2035. Europe is moving ahead toward banning internal combustion engine cars by 2035.

In other words, even if the gas automobile is not out of business by 2035, it faces large reductions in manufacturing and the ability to sell. Commercial real estate will have to take notice and make charging facilities available. Multifamily, retail, office, medical office, industrial (which will also see electric trucks) — none will have an out. The changes don’t mean that gas automobiles will no longer exist then. But enabling people to top off charging while at work or in a store or back at their own apartment will become mandatory, not as a political statement but an unavoidable practicality.

That means planning out a transition now. A greater number of parking spaces will have to provide at least the option of electric chargers and that won’t happen overnight. Even now, owners, investors, and developers have to consider when the work will be done, how much additional power needs to be routed in, what engineering changes might be needed to reinforce parking areas. Then there’s financing all the work.

That is why now is the time to start. Not to break asphalt to install the power and charging devices, but to think about what is needed and how to achieve it.