How landlords can benefit from the great EV charging point roll-out

COMMENT The recent announcements by Vauxhall and Nissan to create major electric vehicle production facilities in Liverpool and Sunderland respectively have brought into focus the seismic change that is taking place in the car industry. This trend has wider ramifications for the property market than just manufacturing facilities. Tesla recently filed a trademark application for a brand to be attached to “restaurant services, pop-up restaurant services, self-service and take-out restaurant services”. Elon Musk’s giant car company is looking to capitalise on the 40 minutes or so it takes to charge its cars by upselling food and drink to waiting drivers. This brings into focus the question of how we will meet the demand for charging points as sales of electric vehicles rise – and how that might create additional revenues for property owners. Charging around Last year saw the biggest annual increase in the number of EV registrations, with more than 175,000 vehicles registered – a growth of 66% on 2019. Looking ahead, projections by National Grid suggest that the UK stock of EVs could reach 10.6m by 2030 and could rise as high as 36m by 2040. That demand has to be met, and not every EV user will have the luxury of a drive at home on which they can park before plugging in their car. Many will need – and indeed want – to charge while they are on the move. The number of ultra-rapid EV charging points at Britain’s service stations and on key roads is set to triple to more than 2,700 as part of a £300m two-year government programme roll-out. While the major arterial routes need to be served, there will also be demand in more suburban locations, and this is where the high street and other locations with parking can capitalise. Three decades ago, we saw mobile phone operators working with landlords to install signal masts on tall buildings, and there will be similar potential for charging points. In this instance, however, there may be more contingent financial benefit than just the rent received from the charging point operator. Having charging points on, or adjacent to, your property will clearly attract EV owners looking to top up their vehicles but, all things being equal, they will also be more likely to get a coffee, buy something for supper, get a haircut or have an appointment with their doctor. The common theme is that while EV charging points will generate “wheelfall” rather than footfall, they will, perhaps more importantly, also increase dwell time. Retail destinations In terms of what property assets can capitalise on this trend, retail parks can clearly benefit, especially as they already tend to have generous parking provision. High street shopping parades and smaller local shopping centres should also be exploring how they can meet the growing demand. And, of course, if they are not already doing so, the roadside F&B drive-throughs that have sold so well at our auctions, and also tend to have parking areas, should be looking to add charging facilities. Installing charging points is also a positive in terms of the journey we are all on towards net-zero carbon status by 2050. Property assets that are sustainable and can demonstrate making a contribution to limiting carbon emissions will, all things being equal, be more valuable than those that cannot. It is a point that is not lost on the likes of Legal & General, which has embarked on an extensive programme of installing EV charging points across its UK portfolio and is a shareholder in Pod Point, one of the largest electric vehicle charging companies in the UK. In auctions, we are all very familiar with lot details listing the number of parking spaces that a property has. It can’t be long before we start seeing how many EV charging points a property provides. In the same way that cash machines proliferated for 50 years across all sorts of locations and acted as a magnet for consumers, charging points will do the same and present opportunities for landlords from both a sustainability and a revenue enhancement perspective. Richard Auterac is chairman of Acuitus