Property managers are heeding the call and demand for electric car owners’ needs for charging stations on their properties. The EV (electronic vehicle) industry is booming, and commercial real estate is poised to take the lead in feeding the demand for accommodations in the form of charging stations.
Check out the explosive growth depicted in the numbers:
- Global EV market is projected to grow by over 40% between 2020 and 202.
- There are 1.8 million electric vehicles registered in the U.S. in 2020 (three times the number of EVs in 2016).
- According to a recent Nareit survey, 60% of commercial property owners are publicly disclosing their environmental, social governance (ESG) goals, including EV accommodations.
- More than 50% of respondents to a 2021 CarMax survey stated plans to make their next auto purchase an electric or hybrid vehicle.
With data like that, it’s hard to ignore the need for EV stations in commercial parking locations. There is an upside to consider, as well. In addition to the needed response to consumer demand, there is also an opportunity afoot.
Demand isn’t going away. The market for EVs is on an upward trajectory that isn’t going to die down anytime soon. Catering to consumer demand for EV stations is eventually going to be a non-negotiable so it’s better to get out in front of the demand now.
Amenities solidify your relationship. This type of amenity can bring customers back to you. Consumers and tenants that seek EV stations will look to you because they know you offer this service that is important to them.
Added revenue streams are yours for the taking. From attracting new customers to offering new profit-driven services for your existing customers, adding EV stations can contribute to a significant lift to your bottom line. By charging one-time fees as well as ongoing monthly fees, the initial investment in installing EV stations will easily create an ROI in a very short time. The truth, however, is that even without that ROI, it would still be necessary to install the stations sooner or later.
Accelerate your ESG goals. As many businesses are pushing toward decarbonization goals and LEED certification, the installation of EV stations can help to propel that objective. LEED awards one point towards certification for any new buildings that implement commercial EV charging stations in 5% of parking spaces, or makes 10% of parking spaces electric vehicle-ready. For existing buildings, the installation of EV stations can positively affect the Transportation Performance portion of your LEED score.
Your competition is doing it (or will be soon). A lack of action in this area can leave your property at risk of falling behind the competition. It’s that simple. Your competitors are or will be soon offering this amenity, and it can cause a lack of market share (or alternatively, a lift in market share).
- Start with an assessment. To get started, conduct a site survey and identify where it makes the most sense to install the EV chargers.
- Set a budget. Stakeholders can purchase EV chargers themselves and run those costs through operating expenses. This can then be passed back to tenants, or an increase in rents can be rolled out. Another approach is to rent chargers or have a third-party install its own EV chargers on the property and pay rent or absorb the cost of installation.
- Communication is key. Develop a strategy to let your audience know that you have EV stations. From web updates to app notifications to proper signage, you will want to get the word out that charging is available.
A Few Key Points To Consider
- Customer service – It’s important to consider what happens when something goes wrong, as it inevitably will. Who will be the point person to address customer service issues and how? How can technology solve these needs, and what backups are in place to ensure a seamless customer experience should that fail?
- Tracking – Any tool that you consider should offer a reporting mechanism that helps you track electricity usage and associated earning history for your EV stations.
- Focus on convenience – Seek out tools that create as little friction as possible with the customer, such as
- No cards, fobs and clunky apps
- Use of easy-to-scan the QR code
- No hidden fees
- Support for a multitude of payment options
- Catered to local market preferences
- Regulatory compliance – As with most things in commercial property management, we need to consider codes and compliance of all regulatory agencies.
If you are ready to explore adding EV stations to your parking property, contact the experts at TruPark, where we understand what it takes to:
- Optimize your revenue-making opportunities
- Ease the burden of operations
- Create first and lasting impressions for building occupants and users