Commercial real estate is a fast-moving industry — if you’re not at the front of the pack, you’re going to be left behind. Leaders in this field today are faced with seismic shifts in the way people live, work and commute in the post-pandemic world. At the heart of these challenges is the urgent call for a more sustainable approach to commercial property, which, when approached strategically, can benefit not only the planet but also your profits.
Implementing electric vehicle (EV) charging at your properties is a great way to show your environmental leadership, meet evolving tenant needs and benefit from easy environmental, social and governance (ESG) regulatory compliance. While capital expense budget constraints can be a concern, numerous grants and incentives available for EV charging infrastructure can actually make this building amenity not only affordable but profitable.
Here’s what an EV charging implementation can do for your commercial real estate business.
- Attract and retain tenants. According to CBRE’s 2023 EU Office Occupier Sentiment Survey, 40% of building tenants want green lease clauses and 48% see EV charging stations as an influence on location satisfaction. Many tenants are looking for locations that offer convenient access to charging stations to better serve the growing number of EV drivers in their communities. In addition, many tenants seek building amenities that support their lifestyle and values. By offering EV charging, you position your properties as modern, forward-looking and appealing to a broader range of tenants. Adding EV charging to your properties also supports the well-being of existing tenants, reduces range anxiety for those who already drive electric and encourages EV adoption among others. Having EV charging on-site also helps tenants reach their organisational sustainability goals and can be a way for them to draw employees and customers to their business.
- Increase property value. The commercial real estate market is highly competitive, and forward-thinking companies that invest in EV charging infrastructure can gain an edge. According to a recent Ernst & Young study, LEED-certified green buildings that include sustainable infrastructure and amenities yield between a 10% and 20% increase in market value compared with “nongreen” buildings. Providing access to EV charging stations fits right in, and these commercial properties are viewed as more desirable and valuable, which can translate into higher income from tenants. When it comes time to sell your properties down the road, having EV charging capabilities can set you apart from the competition and potentially lead to a higher sale price.
- Meet sustainability goals. According to another CBRE report on the role of real estate in the ESG agenda, more than 30% of global Fortune 500 companies now say they have either achieved a climate goal or are publicly committed to doing so by 2030 — a significant increase from just 6% in 2016. By providing an on-site EV charging solution, you make it easier for your tenants as well as their employees and customers to drive electric. EV charging also supports your tenants’ ESG goals and can help you qualify for green building certifications such as BREEAM and LEED. You’ll be facilitating further EV adoption in your community, reducing greenhouse gas emissions and demonstrating your commitment to a sustainable future.
- Meet regulatory requirements. According to PWC’s Emerging Trends in Real Estate Europe 2024 report, 67% of real estate leaders believe ESG requirements will be a top concern in 2024. Many regions have enacted ordinances that require commercial properties to provide on-site EV charging infrastructure. Building codes in many municipalities are evolving to explicitly outline how many charge points to include per parking spot. Even if your location has not yet issued an EV charging mandate, now is the time to electrify as a way to future-proof your properties and get ahead of the coming requirements. Noncompliance with regulations can result in penalties and legal issues, which can be not only costly but also detrimental to your reputation.
- Generate revenue. EV charging gives commercial property owners and managers a great way to create a new revenue stream by collecting fees for charging sessions and attracting EV drivers who may spend money at your building premises. Our internal global data for the first half of 2023 shows that, on average, drivers spent more than £9.50 per session for a DC fast charge at a workplace location on the ChargePoint network. Draw in EV drivers by integrating your charging system with popular driver apps. Dynamically set the price for charging based on the amount of energy dispensed (cost per kilowatt hour), time spent charging, a flat rate or a combination of these factors. Avoid the high upfront costs of installation and achieve ROI quicker with a monthly subscription service for your charging solution. Bundle installation, hardware, charging management software and expert services to provide a comprehensive charging service. You’ll save time and money with minimal overhead and predictable operational expenses.
All signs point to widescale electrification of transportation. All industries are being touched by this massive societal shift, and commercial real estate is poised to play a key role in helping create the new way to fuel. Future-proof your assets and draw in top-notch tenants with an EV charging solution that shows you prioritise environmental sustainability. ChargePoint offers a smooth, cost-effective implementation process and expert support services to help you achieve your ROI goals and increase long-term asset value.
You’ll be leading the charge towards the new, green normal — instead of struggling to catch up with it.
