A research study conducted by Knight Frank has revealed a number of challenges and opportunities that the rise of electric vehicles will bring in Welsh real estate, and now are urging commercial landlords to make the necessary preparations in adapting to this.
Business News Wales spoke to Matt Phillips, the Managing Partner at Knight Frank’s Cardiff office, to learn more about what this study could potentially mean for real estate firms across Wales:
We are seeing a significant rise in the adoption of electric vehicles across the UK, both by individuals and by businesses via their car fleets. This is a very positive shift for the economy as the Government looks to progress towards its Net Zero objectives in a crucial year, with COP 26 due to take place in November.
“Landlords are very well aware of what we call “dwell time”, and there is a lot of research to show that your typical dwell time in somewhere like a retail park, or even a service station on average is 22 minutes. But with an electric vehicle charging, that increases to 72 minutes. The research [also] shows that the average spend is £36, but with that extra 50 minutes it increases to £80.”
“Developers are looking at this as “what can we do to [provide] the best possible experience?”, and so when people are planning their journeys, they are more likely to [stop at a certain retail park or service station] because they know they don’t have to wait too long [due to fast and reliable] charging facilities – so it’s all going to be part and parcel of it.”
As battery capacity increases, technology allows faster, more powerful charging points to become available, and the 2030 legislation looms closer, drivers will become increasingly inclined towards electric vehicles.
However, this growing demand for electric vehicles requires much greater quantum and variety of charging points nationally. Across all kinds of real estate, from residential and retail to logistics and commercial offices, there is a shortage of charging points and a growing need for investment. As the shift to electric vehicles continues to gather momentum real estate asset owners need to consider now whether or not their assets have sufficient EV charging infrastructure to meet current and future occupier demand.
You can view the full research report from Knight Frank here: https://knightfrank.foleon.com/pitch/e-mobility/e-mobility-in-the-fast-lane/?utm_medium=referral&utm_source=foleon&utm_campaign=e-mobility