Why Building Owners Need To Care About EVs

One of the biggest hurdles to EV adoption in the U.S.? The price tag.

But affordable EVs are on the horizon. "The $25,000 economy electric car is the industry's new target, and a number of models are set to hit the road within a year," Bloomberg reports. While prices for EVs in the U.S. are falling, makers are still competing with even cheaper EVs being sold in Europe, China and Brazil. Plus, used electric cars are not just cheap—they are cheaper than similar gas cars. "EV adoption is really going to skyrocket when people realize that used EVs are out there and they’re reliable," one expert told the Atlantic.

The big picture:

‍"The rise of electric cars is staggering. In, 2016, just 700,000 electric cars were sold worldwide, and in 2023 it will be over 14 million," Bloomberg reports. As the market tackles challenges like affordability, range anxiety, and convenient charging infrastructure—EV adoption will rise. It's something that building owners need to pay attention to because ultimately it will affect where people want to live. The convenience of charging at home will be so compelling, it's not just an amenity to consider but a necessary feature._‍

Fifth Wall's POV: From Partner and Deputy Chief Investment Officer and Portfolio Manager at Fifth Wall, Peter Gajdoš

‍"As more EVs come online, building owners have a chance to become the next-gen gas stations within cities. Yes, they need more power and smart power management in the building. However, this is an opportunity to attract tenants and guests, and earn ancillary revenue—especially in places where people will park for extended periods of time. Right now, we're working hard with our portfolio companies and LPs to make the solutions affordable, reliable, and easier to install and maintain."

What's more: Brendan Wallace, Chief Executive Officer and Chief Investment Officer of Fifth Wall, recently wrote:

"You've seen the headlines: 'Tesla sales drop, Rivian sales up!' Those sentences could be reversed, and my point would still stand... cars are consumer products. Demand will change. EV makers will have good quarters and bad quarters."

He added, "Passive charging is the future, and it's an opportunity for the real estate industry to literally become the gas station industry for personal vehicles."