As we step further into the 21st century, the world is embracing a major paradigm shift. The transition from fossil fuel-based transportation to electric vehicles (EVs) is gaining momentum. This transformation is reshaping not just the automotive industry but also the real estate sector, particularly commercial buildings.
The installation of EV charging stations in commercial buildings is not only a necessity to accommodate this change but also a strategic move that can substantially increase the value and appeal of the property. In this blog post, we will explore the multitude of benefits that EV charging stations bring to commercial buildings.
Increasing Property Value
Increased Property Appeal: The presence of an EV charging station can make a commercial building more attractive to potential tenants or buyers. With the rapid increase in the number of EV users, businesses are more likely to choose premises with built-in charging facilities. This demand can lead to higher rental rates and increased property value.
Future-Proofing Investment: The global EV market is expected to grow significantly in the coming years. By installing EV charging stations now, property owners are not just accommodating the current demand but also preparing for the future, ensuring their properties remain relevant and attractive.
Environmental Benefits and Green Credentials
Reduced Carbon Footprint: By facilitating the use of EVs, commercial buildings with charging stations contribute to reducing greenhouse gas emissions. This commitment to sustainability can enhance the building's image, making it more appealing to environmentally conscious businesses.
Green Building Certification: EV charging stations can contribute towards a building's green certification such as LEED (Leadership in Energy and Environmental Design). This certification can significantly increase a property's market value and help attract high-quality tenants.
Financial Incentives of EV Charging Stations
Government Incentives: The U.S governments offers financial incentives for the installation of EV charging stations, such as tax credits or rebates, reducing the overall cost of installation. In fact, according to the DOT, "As expanded by the Inflation Reduction Act (IRA), EV charging infrastructure installed through December 31, 2032, is eligible for a tax credit of 30 percent of the cost, not to exceed $100,000." Additionally, some utilities also offer discounted electricity rates for EV charging, providing further cost savings.
Potential Revenue Stream: Property owners can also turn EV charging stations into a source of income by charging users a fee for the service. This can generate a consistent revenue stream while providing a valued amenity to tenants or visitors. According to evbox, "One common practice is to simply charge the cost of energy being used (i.e., $0.15/kWh). You also have the freedom to define your own markup (i.e., $0.35/kWh). So, if a car pulls up and needs to charge 25 kWh, that’d be: 25 kWh x $0.50/kWh = $12.50."
Enhanced Tenant Experience and Retention
Convenience for Tenants and Visitors: Providing an EV charging station offers a significant convenience to tenants and visitors who drive electric vehicles. This convenience can translate into increased customer satisfaction and tenant retention.
Company Reputation and CSR: Companies increasingly value sustainability and social responsibility. By offering EV charging stations, commercial buildings can help tenants fulfill their Corporate Social Responsibility (CSR) goals, further enhancing their appeal.
Adding an EV charging station to your commercial property is an investment in the future – a future where sustainability and convenience go hand in hand. If you're interested in enhancing the value of your property, attracting quality tenants, and aligning your investments with the green revolution, then it's time to consider integrating EV charging stations into your buildings.
At GAIN CRE, we're at the forefront of integrating EV charging stations into commercial buildings. You have the unique opportunity to join us in shaping the future of commercial real estate, maximizing the value of your property, and offering an exceptional experience for your tenants and visitors. Don't miss your chance to be a part of this dynamic movement. Contact GAIN CRE today and let's power up your real estate investment together.