Commercial real estate and electric vehicle (EV) charging represent a symbiotic relationship with significant potential. As of the second quarter of 2021, the commercial real estate market in the United States was valued at nearly $21 trillion, according to research firm Nareit. Simultaneously, Statista predicts that EV charging revenue will reach $816.4 million by 2028. For commercial real estate owners and investors, the integration of EV charging infrastructure offers not only a public service but also a strategic pathway to increasing property value. Let’s explore the five ways EV charging can benefit commercial real estate.
Who Benefits from Commercial EV Charging Infrastructure?
Virtually any type of commercial property stands to gain from the installation of EV charging infrastructure. This includes shopping malls, standalone retail stores, office buildings, medical centers, multifamily housing, warehouses, garages, and public parking structures. Essentially, any property where tenants rent, lease space, or provide services can experience a boost in value through the incorporation of EV chargers.
Five Key Benefits of EV Charging for Commercial Real Estate
1. Attracting Customers, Clients, and Employees
With an estimated 48 million electric vehicles projected on U.S. roads by 2030, businesses that offer EV charging options are poised to attract customers looking for convenient charging solutions. Job candidates with electric vehicles are also more likely to choose employers that provide EV charging infrastructure, contributing to a competitive advantage in attracting and retaining top talent.
2. Adding Additional Revenue Streams
EV charging stations not only increase commercial lease renewals but also provide an opportunity for ancillary revenue from public users. Retail and mixed-use commercial properties, in particular, can monetize parking and attract drivers by addressing the current shortfall of public chargers in many parts of the United States.
Producing a new revenue stream is one of the number one reasons businesses consider EV chargers. While EV chargers offer many additional benefits, we understand the alure of a new revenue stream. For those interested in the topic, we suggest reading, How to Make Money from an EV charging Station.
3. Increasing Property Value
Improvements like EV charging infrastructure contribute to an increase in property value and commercial rents. As businesses seek modern workplaces, those with EV charging infrastructure become more appealing to potential tenants and buyers. This trend is evident in the residential market, where homes with EV chargers have seen significant increases in selling prices.
4. Future-Proofing Your Property
With the increasing adoption of electric vehicles, businesses that invest in EV charging infrastructure now position themselves as leaders in sustainability. Commercial tenants may increasingly require EV charging as part of their sustainability strategy, influencing lease renewal decisions. Future regulatory requirements may also necessitate EV charging infrastructure, making early adoption a strategic move.
5. Being Seen as an Environmental Leader
Installing EV charging stations aligns with the growing consumer preference for environmentally friendly businesses. Consumers actively seek sustainable companies, and EV charging infrastructure serves as a visual cue of corporate leadership in environmental responsibility. Recognition by sustainable accreditation organizations can further enhance a property’s image and potentially lead to economic incentives.
Funding EV Infrastructure Installation
Government incentives, such as the Alternative Fuel Refueling Infrastructure Tax Credit, provide opportunities for commercial property owners to offset the costs of EV charger installation. Additionally, state and municipal incentives, including the National Electric Vehicle Infrastructure (NEVI) Formula Programs, can support businesses in implementing EV charging solutions.
If your organization is interested in rebate recovery services for an EV charging project, contact Incentive Rebate360 for more information. They provide national commercial incentive and rebate recovery services.
Choosing the Right Charging Stations
Commercial property owners can select from Level 2 chargers, ideal for businesses where customers spend more time, and Direct Current Fast Chargers (DCFCs), which offer quicker charging but may require additional electrical infrastructure. The choice depends on factors like budget, available power supply, and the type of business leasing the property.
Enhance Your Real Estate with Apogee Charging Solutions
Integrating EV charging infrastructure into commercial real estate is a strategic investment that goes beyond providing a public service. It aligns with sustainability goals, attracts customers and employees, generates revenue, and future-proofs properties. As the electric vehicle revolution accelerates, commercial property owners can stay ahead by embracing the value-enhancing benefits of EV charging infrastructure. For more information about EV charging for commercial real estate, call 484-816-2076, emailing [email protected], or schedule a call that fits your needs by clicking the button below.