Protecting the environment and combating climate change is increasingly taking center stage, rightfully so. More and more people are taking note of sustainability initiatives of companies, thanks in great part to social media. It is only the matter of how soon the property benefits of EV charging will come to be a key consideration. Properties that adopt EV charging sooner will have an upper hand when EV penetration skyrockets in the coming years, with annual growth rates of 25% over the next 5 years.
Traditional gas stations which functioned on a model of fuel supply coupled with a small convenience store could no longer be appealing. The mode of charging may vary, but the kind of EV owners that a property attracts would be based on the location and type of the property.
With a lot EV charging being done in the convenience of home or while a customer is working or shopping, as opposed to going to a gas station every 2-3 days, properties where people live/work/shop stand to benefit the most from jumping on the EV charging bandwagon. On the other hand, hospitality properties hosting long distance travelers could also benefit by providing charging options to weary travelers.
Benefits of EV Charging Stations to a property
Including EV charging stations as a part of the marketing strategy would be immensely beneficial in building up competitive advantage and brand loyalty for all real estate sectors be it office buildings, shopping centers, hotels, or multifamily housing. As car and bikeshare programs have started to become ubiquitous, an EV charging station as a part of the amenity package would be the next big opportunity for properties both in benefiting the environment and the people who live, work or shop at the property. According to this latest CBRE report, buildings that have an all- encompassing approach to experience, social responsibility and amenities are going to perform best in future.
Attracting and Retaining Customers
For offices and multifamily housing, providing EV charging facilities on-site would translate to attracting talented employees and high-income tenants. 70% of the plug-in EV owners today are less than 40 years old with 64% of EV-owning households making more than $75,000 annually, according to Navigant Research. These are the young, affluent customers that a multifamily or shopping center owner would want to attract, and usually also tend to be the tech-savvy, highly educated, employees that most office-using firms look to attract and retain.
The biggest benefit for retail and hotel property owners would be that the EV charging stations function as a magnet, in attracting more people and encouraging them to spend more time on-site as their vehicles charge, which in turn equates to more time and money spent at the property. With the scarcity in supply of charging stations, EV owners report suffering from “range anxiety” – fearing that the battery may run out during their trip. With on-site EV charging, a property could encourage visits from EV owners who live relatively further afield.
Offering a charging station would increase visitor satisfaction in general and increase the eyeballs for the property. Placing the charging station on the network, could draw people who have not otherwise considered visiting the property. People come for the charging but stay for the shopping, dining, or entertainment.
Additional Revenue Generation
In addition to charging tenants and customers for the energy that they draw, property owners can make additional revenue by showing ads on displays at the charging stations. Ads can work to the benefit of offsetting costs associated with charging, thereby working to the benefit of offering charging as an amenity. With digital displays becoming more sophisticated, including the use of targeted advertisements, the revenue potential from displays co-located with charging stations will keep growing.
There is also the potential for developing additional infrastructure around a charging station. Just like today’s highway rest stops these may be particularly attractive for long distance travelers. Premium Charging hubs could provide Wi-Fi, refreshment services, and even going to the extent of providing lounges and event spaces and other services of value for a long-distance customer. This would all serve as means of additional revenue generation for the property owners.
Increasing Property Value
There is a clear and sustained rise in the demand for sustainability, which is no longer “nice to have” but is critical to business, according to a recent Forbes article. Environmental and corporate values are a main element involved in the purchase decisions of millennials and Gen Z customers, and the majority of these increasingly influential age cohorts indicated that they want to appear environment friendly in a recent poll. This makes EV charging a key favorable attribute. Installing charging stations signals that the property owner cares about the environment and is willing to doing their part in ensuring in creating a sustainable future. Being an early adopter in building a green image could have a positive effect on asset positioning and differentiation, driving up the brand image in the eyes of customers. In turn, this makes the property more attractive to potential investors and buyers thereby increasing its value. There are multiple studies that indicate that there is a significant and measurable “green premium” in terms of both and rents for buildings.
Maximizing Utility Usage
Smart EV charging or V1G charging refers to a system were EV and charging device share a data connection, which helps monitor charging status remotely and allows for optimal charging. It helps create a more energy-efficient environment by allowing the EV batteries to store energy during the day when production is high and discharging energy back in the evening when the consumption peaks, this maximizing Utility Usage. It helps properties with favorable tax ratings and to meet regulatory requirements
Gain Points towards LEED certification
In addition to all these benefits, adding EV charging stations to the property can help gain points towards LEED certification from the USGBC (US Green Building Council). Many companies view LEED certification as the minimum requirement for them to be located on or to do business with a property. The number of such corporate occupiers and customers will keep increasing, making LEED and comparable certifications much more of a necessity in the future.
Last but not the least is the fact that while current incentives at the federal, state and utility level offer a great deal of advantages for the property owner, this may not last forever as more and more properties jump into the EV bandwagon. Early adopters stand to take a major slice of the incentives for adopting, so it is imperative for property owners to join the movement as quickly as possible.
Sources:
What’s driving desire to switch to an electric car? (msn.com)
The death of the Gas Station – How Tesla and EV charging networks threaten the future of gas stations – Vox
4 Major Benefits of Adding EV Charging Stations to Your Property – Propmodo
Rise of the inclusive, sustainable consumers | McKinsey
How to future proof your real estate business with EV charging – Webinar debate | How to future-proof your Real Estate (virta.global)