The Future is Electric: Benefits of Installing EV Charging Stations at Commercial Properties in 2023
Installing electric vehicle charging stations can give your commercial property a competitive advantage, as industry experts predict that the electric vehicle market will exceed $800 billion by 2027. Commercial property owners can capitalize on this trend by installing EV charging stations on their premises. GAIN CRE, with its tailored suite of services, can help you harness the benefits of EV charging stations and increase the value of your commercial property.
Benefits of Installing EV Charging Stations at Commercial Properties
1. Increased Property Value and Marketability
Installing EV charging stations at commercial properties can significantly enhance their marketability and value, giving them a competitive edge in the market. As the number of electric vehicles on the road continues to grow, potential tenants and buyers who are dedicated to sustainability and eco-friendly practices will increasingly value properties equipped with such amenities.
Adding EV charging stations to Class A properties not only boosts their resale value but also draws in potential tenants seeking this sought-after amenity on a regular basis. Further, by pairing charging stations with solar panels to supply energy, property owners can reduce the overall net operating costs of the building. This combination of factors serves to boost the appeal, marketability, and value of commercial properties, making them more attractive to environmentally conscious tenants and buyers.
2. Attract and Retain High-Quality Tenants
Commercial property owners can attract and retain high-quality tenants by embracing eco-friendly practices, such as providing EV charging stations. As businesses are increasingly transitioning their fleets to electric vehicles and prioritizing green initiatives, offering these amenities can help reduce vacancy rates and generate stable rental income.
Electric vehicles, which are generally more expensive than traditional cars, appeal to environmentally conscious and financially stable customers. Studies by CarMax/CleanTechnica and TrueCar.com reveal that a significant portion of EV owners are older, educated, and have higher incomes. Specifically, according to CarMax/CleanTechnica, among EV owners, 65% are 40 years old or older, about 70% have a college education, and almost 70% earn a yearly income of $75,000 or more. Moreover, a study by TrueCar.com shows that Ford Focus electric car owners have an average household income of $199,000, while Fiat 500e owners earn around $145,000 per year.
This demographic is likely to appreciate properties with EV charging stations, further emphasizing the benefits of catering to their preferences. By meeting the needs of these customers, commercial property owners can enhance their ability to attract and retain environmentally responsible businesses and tenants.
3. Enhance Corporate Image and Environmental Stewardship
Installing EV charging stations at your commercial property demonstrates your commitment to sustainable practices and environmental stewardship. This not only helps improve your corporate image, but also aligns your business with the values of your environmentally-conscious tenants and customers.
4. Generate Additional Revenue
EV charging stations can serve as an additional source of income for commercial property owners. By offering paid charging services, property owners can benefit from a new revenue stream that can offset the initial investment costs and contribute to the overall profitability of the property.
5. Government Incentives and Tax Benefits
Many local, state, and federal governments offer incentives and tax benefits to businesses and property owners who install EV charging stations. Right now, the IRS provides a tax credit of up to 30% on the total cost of commercial EV charging stations, with a maximum credit of $30,000.Taking advantage of these incentives can help reduce the installation costs and provide significant tax savings.
6. Future-Proofing Your Property
The global transition towards electric transportation is well underway, and investing in EV charging infrastructure will prepare your commercial property for the future. As the demand for charging stations increases, properties without this amenity may become less attractive to potential tenants and buyers.
Installing EV charging stations at commercial properties offers numerous benefits, including increased property value, tenant attraction and retention, improved corporate image, additional revenue, government incentives, and future-proofing your investment. GAIN CRE, with its expertise in acquisitions, development, asset, and property management, can help you navigate this rapidly evolving landscape and make the most of this opportunity. Leverage our tailored suite of services to enhance the value of your commercial property today. Get in touch: firstname.lastname@example.org.