The race is on to install more electric vehicle chargers to meet California's ambitious goal of 100% zero-emission vehicle sales by 2035. The Golden State will need 1 million public chargers by 2030 to accommodate that goal, according to energy experts.
Starting in 2026, state building codes will require all new multifamily developments to include at least one “EV-ready” parking space per unit, while hotels must have 65% of spaces EV-ready, with some cities allowed to require 100%. The rules extend to shopping centers and industrial parks, where 20% of spaces must be EV-ready, with cities able to raise this to 30% or 45%.
Both the government and local entrepreneurs are stepping up to meet this demand. The city of Los Angeles, for one, has installed nearly 16,000 chargers during the past two years, a 77% increase. And a host of charging companies are working with local real estate brokerages to add chargers to new and existing properties.
But a recent slowdown in the growth in sales and new EV registration is giving some market watchers pause about whether demand and supply can balance each other out in time to meet the state's lofty goals profitably. Federal support could also shift when President-elect Donald Trump takes office; he campaigned on rolling back some EV policies.
"It's a big complex puzzle that's being put together in real time," said Marques Williams, executive director and tenant representative lead at Cushman & Wakefield, who helps EV firms find real estate in Los Angeles.
"Our municipalities definitely have [the] appetite to reduce carbon footprint," Marques told CoStar news. "How we get there is probably a lot more challenging than was initially perceived."
State goals
California offers residents who buy or lease an electric vehicle a rebate of up to $7,500. Buyers may also qualify for a federal rebate of up to $7,500.
The incoming Trump administration has discussed eliminating the federal electric vehicle rebate as part of broader tax-reform legislation. But cost is not the only factor keeping some Angelenos from buying electric vehicles, Williams said.
Many fret about their ability to find recharging stations when and where they need them. Tales of overcrowding, malfunctions and disrepair at public charging stations are common among the city's electric vehicle drivers.
Electric vehicle registrations climbed 2% year on year in California for the quarter ended Sept. 30. But the pace of growth has slowed dramatically after several years of high-octane gains. New car market share for electric vehicles shot from 8% of new registrations in 2020 to 12% in 2021, 19% in 2022 and 25% in 2023, according to the California New Car Dealers Association.
Lack of charging station availability is the main reason people give for not buying an electric vehicle, according to a recent survey by J.D. Power.
Nationwide, carmakers are cutting production plans for new electric vehicles, with the U.S. output forecast to decline by 50% next year, according to data firm Bernstein.
"Until the consumer crystallizes the benefit of an EV vehicle versus a combustible engine, we are still going to be in this state of figuring it out," Williams said.
Charging up
Still, in Southern California, it is easy to see charger demand increasing. They're often viewed as a key amenity in lease negotiations for office tenants with sustainable-minded executives and industrial users with increasingly green fleets of trucks, said Ian Jost, an associate at JLL who helps EV firms find real estate in Los Angeles.
Santa Ana-based Rove Charging is one of the EV operators investing in real estate. The company is searching for ground lease opportunities for its convenience and grocery store electric vehicle charging concept throughout Southern California.
The first such station opened at 1008 E. 17th St. in Santa Ana, in mid-October with 40 covered charging spots, a ReCharge by Gelson's grocery store, indoor and outdoor seating, a car wash and a dog park. Rove is building 10 similar charging centers with Gelson's across Southern California, including units in Corona, Costa Mesa, Long Beach and Torrance that will open next year.
Other expanding electric vehicle charge station operators include companies like Hyperfuel that seek to put six to eight parking spaces in traditional grocery-anchored centers. And there are firms like Terawatt Infrastructure that target industrial assets to aid surrounding distribution and shipping companies with fleet charging needs, Jost said.
ChargerHelp, a Los Angeles startup that trains workers to install and manage charger stations for property owners, is also growing its local business with help from Cushman & Wakefield.
Meanwhile, a locally based firm called 3V Infrastructure plans to spend $12 million adding 1,000 chargers at multifamily housing developments and hotels across Southern California.
So-called long-dwell properties — like apartments and hotels — are an overlooked and underfunded asset class of electric vehicle infrastructure, said Aubrey Gunnels, co-founder and CEO of 3V Infrastructure, in a statement.
“Drivers want to charge their vehicles like they charge their cell phones — when they’re at rest for extended periods of time," she said.
Moving forward
The government is driving electric vehicle adoption with streamlined permitting, mandates for charging stations in new developments, and government funding to support infrastructure, Jost said.
UCLA used part of a state grant to install California’s first electric road system. Inductive charging coils below a mile-long section of road on campus allow for the wireless charging of the school's new fleet of electric passenger shuttles and heavy-duty buses while the vehicle drives.
Static wireless charging at passenger pick-up and drop-off locations, including the new UCLA transit hub, can also charge vehicles while they are stopped.
“If adopted widely, this innovation could revolutionize transit electrification,” said Jared Schnader, senior director at Calstart, the clean transportation nonprofit group that funded the project.
Elsewhere, the city has been adding chargers on street lights all year, saving money by using existing infrastructure that is easily and cheaply adapted.
And more electric vehicle makers are using the same charging standards so that different vehicles can use the same stations to power up. Market leader Tesla recently committed to opening up its charging stations to other manufacturers.
But until more infrastructure is built and sales start climbing again, there's still uncertainty about the pace of the path forward for companies like Tesla, Rivian and Faraday Future, Williams said.
"EV companies right now are doing their best to figure out who they are today and who they want to be for the future," he said.