Knight Frank's Role in Expanding EV Infrastructure
Knight Frank, an independent real estate advisory firm, is swiftly expanding across ten countries, driven by the rising demand for energy-efficient solutions. With a strong focus on energy and sustainability, the firm is positioning itself as a leader in this evolving market.
Capitalising on EV infrastructure opportunities
As EVs grow in popularity, Knight Frank is seizing the opportunities presented by EV infrastructure. David Goatman, Global Head of Energy and Sustainability Services, confirms, "We are capitalising on the opportunities presented by EV infrastructure across asset types such as petrol stations, workplaces and retail spaces."
The firm provides landlords and tenants with strategic support for decarbonisation efforts, offering benefits like improved ESG performance, additional rental income and higher property valuations.
David elaborates, "We provide strategic advice, feasibility assessments and guidance through grid and planning applications, legal negotiations, project management and reporting. We have negotiated rapid EV charging hub deals in key sectors."
Key challenges in EV infrastructure growth
One of the main challenges in expanding EV infrastructure, according to David, is grid capacity. “Grid capacity remains the most significant challenge for rapid EV charging projects, especially as the largest chargers now require substantial energy,” he explains.
Additionally, variability in customer service quality and charger reliability presents obstacles to broader EV adoption.
“We believe that public access to reliable, rapid charging stations is essential, especially as over 30% of UK homes lack off-street parking,” David notes. Retail and leisure sites are particularly attractive locations for charging hubs due to their amenities and the potential for landlords to generate extra rental income.
The logistics sector, while behind in EV deployment, is expected to see rapid growth with both fast and rapid chargers for delivery vehicles.
Impact of EV infrastructure on real estate values
The rise of EV infrastructure is making a significant impact on real estate values. David explains, “Charge point operators (CPOs) typically prefer leasing sites over purchasing them, creating new streams of rental income and increasing asset valuations without requiring landlords to invest significant capital.”
However, landlords must weigh the benefits against the long-term implications of 20-year CPO leases, which could hinder future site redevelopment.
Retail tenants are particularly eager to have EV chargers on-site, as they encourage customer dwell time. "For office buildings, AC chargers are more common, as they require less grid capacity and capital expenditure but are highly sought after by tenants," David adds.
Maximising value in the emerging EV charging market
To fully capitalise on the EV charging market, landlords should aim to install as many chargers as possible, provided it doesn’t interfere with future development plans. "DC chargers generate more rent, while AC chargers are popular with occupiers and can enhance leasing deals," asserts David. However, landlords must be cautious, as CPOs can vary significantly in terms of reliability, delivery and rent payments.
To mitigate these risks, Knight Frank advises running competitive selection processes for CPOs. "This ensures that landlords and occupiers achieve the best possible commercial terms," David explains. In many cases, Knight Frank recommends splitting portfolios across multiple CPOs to assess which provider delivers the best results.
EV Charging Stations as a real estate sub-market
EV charging stations are quickly becoming an established sub-market within the real estate industry. “We expect this to lead to more diverse investment transactions, including the sale of portfolios of EV ground leases,” David affirms.
Knight Frank anticipates the growth of EV charging at high-energy sites such as renewables, data centres and logistics hubs.
David concludes, “Knight Frank is positioning itself as a key player in this evolving landscape, offering a full suite of professional services, including transactional advice, leasing, valuations and asset management. Having led some of the largest EV charging portfolio deals to date, the firm is set to continue playing a pivotal role in the sector’s growth and its contribution to the green transport agenda.”
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