Attract Eco-Conscious Customers To Your Space With Electric Vehicle Chargers

Landlords and property management companies interested in attracting eco-conscious tenants and reducing their company's carbon footprint should consider electric vehicle chargers and solar power upgrades. The features have the added benefit of increased revenue and tenant retention for buildings across all sectors.

A poll of 1.2 million people worldwide conducted by the UN Development Programme (UNDP) found that two-thirds of respondents would call climate change "a global emergency." By reducing carbon emissions and relying on cleaner sources of fuel, such as electricity that can be generated by solar or wind power, electric vehicles can make a substantial impact on climate change.

President Biden has also been clear about his push to reduce emissions by supporting the production and purchase of electric vehicles as a way to promote sustainability. Allied Market Research projects the EV market could reach $802.82 billion by 2027. Some Wall Street analysts have set their sights even higher, predicting market growth of up to $5 trillion by the end of the decade.

The benefits of EV charging stations can be reaped by landlords, especially those who own retail establishments. Atlas Public Policy found that EV charging stations bring in new customers and also increase the amount of time they stay in a store.

"Installing EV charging stations is the right thing to do to attract and keep eco-conscious tenants and protect the environment," said Jordan Ramer, CEO of EV charging station provider EV Connect. “Landlords can position their commercial properties as sustainable, cutting-edge, and high-tech."

“Property managers should think about EV charging stations as an opportunity to attract and retain tenants," Ramer continued. "More consumers than ever before view EV charging stations as key differentiators of the businesses they frequent."

Joe Muratore, co-CEO of Graceada Partners, which manages more than $450 million in value-add commercial real estate across Central Valley, California, agreed. “People crave environments that embrace eco-conscious decisions and EV charging stations do just that."

In addition to attracting tenants, installing EV chargers can increase an owners' return on investment (ROI) for the building.

Although ROI can vary tremendously based on your billing model, state and local incentives and demand for charging in your area, most experts agree that EV charging stations not only increase a building's re-sale value, but they can be highly profitable for landlords too.

Level 2 EV charging stations, which are noted as an economical and efficient choice, use 240-volt electric hook-ups and can charge vehicles in four to eight hours. They are a popular choice for apartments, retail, and multi-use building parking lots.

Property Manager Insider, a site that connects property managers to contractors in various industries, estimates that level 2 charging stations cost about $6,000 for the material but installation costs can vary depending on the property and the building's current electrical systems. Work must always be performed by a licensed electrician.

"We suggest working with an experienced firm that can walk you through the entire process, from funding and installation to deployment, driver support and management," Ramer said. "Thankfully, there are now many qualified companies that can provide everything from basic advice to full-service EV charging deployment services."

According to experts, financial incentives can help offset initial costs and improve both ROI and net operating income on buildings. For instance, the federal government offers a tax credit of 30% off the cost of purchasing and installing EV charging stations, up to $30,000 for businesses, good through December 31, 2021.

Ramer pointed out that landlords and property managers can choose from a variety of different billing models for their EV chargers, or provide charging stations as a courtesy to customers and residents within a building.

Landlords can choose from flat fee billing, or metered billing based on charging time, parking time or energy use. If you bill users for their charging time or energy used, you can earn back most of the operating and installation costs, said Ramer. But several state and federal incentives also exist to defray the initial upfront costs, he added.

“We have seen businesses take advantage of many federal, state and local incentive programs, as well as those from utilities, which can all help to offset the cost of building electric vehicle infrastructure and equipment," he said.

Coupling EV charging stations with solar power can also help offset the cost of the energy used for the charging stations, increase a building's net operating income by reducing electric bills, and increase the property value during a sale, said Muratore.

“Chargers connected to solar can be even more efficient than electric," he said. "A solar gallon of power costs around 71 cents, compared to the average cost of gasoline, so combining solar with EV chargers can further your ROI."

Property managers who install solar panels on their buildings can receive a federal tax credit of up to 26% of the total cost of the solar installation, minus cash rebates. And, added Muratore, eco-conscious states like California offer added cash incentives beyond the federal tax credits for solar.

Creating a culture of sustainability within your buildings is about more than just installing the right equipment for energy savings. “Right now, the best operators are executing eco-conscious initiatives and tailoring to a class of professionals and tenants who desire more accommodations," said Muratore.

For instance, Muratore installed smart HVAC systems in their properties, and is exploring bike share programs to help tenants further reduce their carbon footprint. “These tenants embrace a greener economy and want to live in a community that does the same."