Transforming Multifamily Properties: The EV Charging Revolution

In a rapidly evolving landscape, multifamily property owners are faced with a pivotal decision: integrate electric vehicle (EV) charging infrastructure or risk falling behind. As the momentum shifts towards electric vehicles, the demand for convenient charging solutions is no longer a futuristic concept but a present-day necessity. This transformation isn't merely about keeping up with trends; it's about strategically positioning properties to attract and retain tenants. In the latest episode of Peak Property Performance®, we unravel the complexities of integrating EV charging solutions with David Aaronson, founder of Refuel Electric Vehicle Solutions (REVS). If you don’t own your data & digital infrastructure, your vendors do. Click here to listen to the full episode.

EV Charging: Amenity or Revenue Stream?

The conversation kicks off with a crucial question: Is EV charging an amenity, a revenue stream, or both? David Aaronson makes it clear that while many property owners currently view it as an amenity, there’s immense potential to transform it into a revenue-generating asset. In the words of Aaronson, “If you own an electric vehicle and that property doesn’t have an EV charging station, they’re not even going to look at that property.” This statement highlights the growing expectation among tenants for properties to offer charging solutions.

As more EVs hit the market, the pressure mounts for property owners to install charging stations. New builds are incorporating EV infrastructure from the get-go, with over 90% integrating some level of charging capability. Retrofitting existing structures, however, presents unique challenges and often demands innovative solutions. “It’s much less expensive to do it when you’re building it,” Aaronson adds.

OpticWise’s perspective is clear: owning your EV infrastructure means owning the data and the leverage. This ownership not only facilitates operational efficiency but also positions property owners to adapt swiftly to market changes.

Ownership and Control of Digital Infrastructure

Bill Douglas emphasizes the importance of controlling your digital infrastructure, a principle that applies directly to EV charging. The discussion uncovers the fiscal decisions property owners face—whether to own or lease their charging systems. Aaronson compares this decision to the evolution of washers and dryers in apartment complexes, where many properties opted to lease rather than own.

“The budgets of these apartment properties are so tight... they don't have any money to put them in. The reason we're able to go in and own and operate these properties is because we are putting permanent infrastructure into their property.”

This flexibility allows owners to introduce EV charging without a significant upfront investment, turning potential barriers into opportunities.

In the long run, owning the infrastructure ensures that the data generated from these systems can be effectively utilized to meet ESG goals and enhance operational efficiencies. Yet, as Aaronson points out, many are not leveraging this data to its full potential. “Even institutional investors have not gotten to the point where they want to take the information from the charging station and understand the impact that it's having on the environment.”

Retrofitting vs. New Construction for EV Stations

The episode takes a deep dive into the practical realities of installing EV charging stations, particularly the differences between retrofitting and new construction. Retrofitting poses distinct challenges, from navigating utility company regulations to dealing with existing electrical infrastructure. “Every property is different. Every utility company is different... every city has permitting regulations, and they’re all different,” Aaronson explains, underscoring the complexity of upgrading existing properties.

Despite these hurdles, solutions exist. By identifying available electricity and creatively reallocating power, property owners can overcome many of the challenges associated with retrofitting. “We typically look for extra electricity at that apartment project on their existing panels,” Aaronson notes, illustrating a practical approach to a common problem.

Ultimately, the decision to retrofit or incorporate EV infrastructure in new builds can significantly impact the financial model and ROI of a property. As Aaronson aptly puts it, “Once it’s in, it’s in.” This investment not only future-proofs properties but also enhances their appeal to a growing demographic of eco-conscious tenants.

Retrofitting vs. New Construction for EV Stations

When it comes to multifamily properties, the decision to retrofit versus incorporating EV charging from the ground up in new construction is not trivial. Bill Douglas and David Aaronson delve into this topic, highlighting the complexities involved in retrofitting. Retrofitting often demands innovative solutions due to differing city regulations, unique property layouts, and existing infrastructure constraints.

David Aaronson explains, “Retrofitting is completely different than new construction... Every property is different. Every utility company is different. Every city has different parking regulations.” The process involves identifying available capacity on existing electrical panels, often requiring creative solutions to reroute or borrow electricity.

New construction, on the other hand, allows for the integration of EV infrastructure from the outset, reducing costs and complications. It’s evident that property owners must weigh these factors carefully when deciding their approach to EV charging station implementation.

ROI and Financial Models for EV Infrastructure

Understanding the financial implications of EV infrastructure is key for property owners. Bill Douglas probes the ROI of different financial models, revealing a spectrum of returns. David Aaronson points out, “Most of them, the ROI isn't going to move the needle... But you do get an opportunity to rent an apartment to people who drive electric vehicles.”

The real value often lies in tenant attraction and retention. With average rents hovering around $1,800 to $2,000 per month, the presence of EV charging can be a decisive factor for potential tenants. Losing a tenant could mean significant re-leasing costs, making the presence of EV charging a strategic asset rather than just a cost.

For those hesitant to invest, Aaronson emphasizes the importance of leveraging available grants and rebates, stating, “Right now, there are a lot of utility companies and states that are giving grants out to install EV charging stations... Shame on you if you're not taking advantage.”

Future Trends in EV Charging and Digital Solutions

The conversation also touches on future trends, with Drew Hall and David Aaronson discussing the potential for technological advancements in EV charging. The infrastructure is still in its early stages, and like the evolution of cell phones, significant changes are anticipated.

“The whole industry is very, very early,” Aaronson notes. The potential for smarter scheduling and load management could transform user experiences, making charging more efficient and predictable. Drew highlights this by saying, “The technology could exist to where we say, hey, you know what? I'm gonna pull in and I'm not gonna be able to charge until 6:30 p.m., but I'm gonna have full rate.”

Such innovations are not just about convenience but are integral to optimizing infrastructure use. The conversation underscores the need for a strategic approach to digital infrastructure, ensuring it evolves in tandem with technological advancements.

Actionable Takeaways for CRE Owners

As we navigate the complexities of integrating EV charging solutions, key takeaways emerge for commercial real estate owners. Firstly, owning your digital infrastructure, including EV charging stations, is crucial for leveraging data insights and operational control. The PPP 5C™ framework — Clarify, Connect, Collect, Coordinate, Control — serves as a guide in this endeavor.

Secondly, consider the long-term strategic benefits of EV infrastructure beyond immediate ROI. While the initial financial returns may not be significant, the potential for tenant retention and attraction is invaluable. Utilize available grants and rebates to offset initial costs and gain a competitive edge.

Lastly, stay informed about emerging trends and technological advancements. As the industry evolves, so too should your strategies. Being proactive in adopting new technologies can position your properties as leaders in energy efficiency and tenant satisfaction.

For more insights and strategies on optimizing data and digital infrastructure, explore our Peak Property Performance® book and tune into the Peak Property Performance® Podcast.

About OpticWise: OpticWise provides owner-controlled data & digital infrastructure for commercial real estate — from PPP Audits to portfolio-wide intelligence. See how we operate or read customer outcomes.