Electric vehicle numbers are on the rise and what that means is an increase in leasing activity and growth in manufacturing and industrial facilities across North America where the cars can be built and distributed. At the same time, the ramp-up is delivering several big challenges, according to a recent CBRE report.

Leasing makes sense for the specialized manufacturing and distribution centers these cars require rather than just owner-occupied facilities, which also exist. The leasing has been mostly bulk lease transactions in the U.S. with 100,000 square feet or more. These currently comprise 7 million square feet of the 7.9 million square feet of EV-occupied space leased in the first half of 2023 or 163% year-over-year growth. 

Over the last five years, 15 markets have accumulated more than 1 million square feet of leased industrial space for EV occupiers. These deals total 28 million square feet or 73% of all EV leasing transactions in this time frame. The top five markets are Chicago, Detroit, Central Valley, Silicon Valley and Memphis, with Chicago having 3.6 million square feet and Memphis having 2.3 million.