Commercial real estate and electric vehicle (EV) charging are a natural fit. According to research firm Mordor Intelligence, commercial real estate in India is estimated at USD 40.7 Billion in 2024. And the report further projects the value to grow to USD 106 Billion by 2029 at a CAGR of 21%.
EV Charging Industry is also set on a high growth path. According to the India Energy Storage Alliance (IESA)'s Business as Usual Scenario, India EV Charging market is to grow at a CAGR of 46.5% from 2022 o 2030.
Commercial real estate owners and investors are always looking for ways to increase the value of their properties. Adding EV charging infrastructure is an obvious way to increase property value while providing a much-needed public service. Here are five ways that EV charging benefits commercial real estate.
Who benefits from commercial EV charging infrastructure?
Virtually any type of commercial property would benefit from installing EV charging infrastructure. Some specific types that would see a boost in value include:
Warehouses
Garages
Basically, any property where tenants rent, lease space, and/or provide a service would benefit from having EV chargers installed.
Five benefits of EV charging for commercial real estate
There are five reasons to install EV charging stations at commercial real estate properties: attracting customers and employees, generating revenue, increasing property value, future-proofing your property, and promoting environmental leadership.
Attracting customers, clients, and employees
According to JMK Research, there will be 80 million EVs on Indian roads by 2030, driven by electric 2-Wheelers (at a share of 80%). Many of those drivers will look for businesses where they can charge their vehicles, especially when they will be parked for an extended period. Commercial properties that provide charging options will win EV drivers away from other businesses that don’t offer charging. Likewise, job candidates who own EVs are more likely to choose a company where they can charge their vehicle throughout the workday. In a US Department of Energy report, 80% of workplaces surveyed said on-site EV charging had helped them attract and retain top talent. In today’s competitive job market, businesses need innovative benefits that will help them hire the best employees. Installing EV chargers for your commercial tenants can help attract companies that are looking for this valuable amenity.
Adding additional revenue streams
While EV charging stations can increase commercial lease renewals, they can also add ancillary revenue for public users. In particular, retail and mixed-use commercial properties can benefit from attracting drivers and monetising parking. With a current shortfall of public chargers in India, commercial real estate owners can help make up that shortfall by installing public chargers in their parking lots. One of the best parts about commercial EV charging stations is that they can increase revenue. Not only will EV drivers spend more time shopping at a retail store as they wait for their vehicle to complete charging, but property managers can also monetise their parking. While some commercial properties offer free charging, the Blink Network allows property managers to charge drivers an energy usage or hourly fee for using the chargers.
Increasing property value
Property improvements like electric vehicle charging can help you score credits for IGBC/LEED Building Rating Systems, which can help increase property value (and commercial rents). Business tenants looking for a modern workplace want commercial properties with EV charging infrastructure. Similarly, potential buyers are also likely to be attracted to properties with EV charging. It’s clear that property buyers are interested in EV charging and are willing to pay more.
Future-proofing your property
As the world turns more to EVs, businesses risk being left behind and missing out on the benefits of charging installation. Taking action now and installing charging equipment ensures your properties are ready for the EV transition. In fact, commercial tenants may increasingly require their commercial property managers to invest in EV charging as part of their sustainability strategy for them to renew their leases. In addition, electric vehicle charging as a requirement is being mandated by several , In the future, we can expect to see more mandates for including EV charging infrastructure at new buildings and retrofitting parking lots at existing buildings. Future-proofing your property with commercial EV charging stations and make-ready infrastructure can help your business stay ahead of the regulations and display corporate sustainability leadership.
Being seen as an environmental leader
Finally, installing EV charging stations at your commercial property can boost your corporate image and marketing. Customers are increasingly seeking out environmentally friendly companies. In fact, online searches for sustainable goods increased globally by 71% from 2016 to 2021, according to one Economist/World Wide Fund for Nature report. Another report from IBM found that “84% of global consumers consider sustainability important when choosing a brand… And 62% of consumers now say they’re willing to change their purchasing behaviour to help reduce the negative impact on the environment, up from 57% in 2019.” Consumers want to buy from sustainable companies, and EV charging equipment is an obvious visual cue to potential customers that you are leading the way. EV charging installation can also help you get recognised by sustainable accreditation organisations like Indian Green Building Council (IGBC) and Leadership in Energy and Environmental Design (LEED), which can help your property attain tax breaks and other economic incentives.
How to select a charging station
EV charging infrastructure is a fantastic investment for your commercial property to raise value, future-proof amenities, attract employees and customers for your commercial tenants, and increase lease renewals. But which EV chargers are best for commercial properties? There are two options to choose from:
Level 2 chargers
Direct Current Fast Chargers (DCFCs)
Which one you choose will depend on several factors, including:
Your budget
Your available electricity load
The type of businesses that lease your property
Level 2 versus DCFC for commercial real estate
Generally speaking, commercial property owners will select Level 2 chargers like the Series 7. These powerful charging stations can deliver up to 32 amp to charge an EV in a few hours and are ideal for businesses where customers will be spending more time, like a. office building, movie theater, mall, hotel, or spa. You can charge drivers for using them by the amount of electricity they use or charge by the amount of time their car spends plugged in. On the other hand, DC fast chargers like the Series 9 can charge a vehicle in about an hour. DCFC is quick, but they require additional electrical infrastructure that is unavailable at the typical workplace. DCFCs are typically found near rest stops, highways, or fleets where business owners do not expect drivers to park for very long. Notably, the installation costs of DCFCs are significantly more than Level 2 charging stations. While many properties already have 230V power, DCFC usually requires significant electrical upgrades to add 480V power. Level 2 chargers are less taxing on available power supply and budgets.
Blink network solutions
Choosing Blink means you will be added to the Blink Network, which includes the Blink App to alert drivers about your chargers. Listing your chargers on EV charging maps like Blink or Google Maps can help you attract new customers to your property. The Blink Network gives property managers the tools they need to control all their chargers’ settings – like setting prices for different groups – from one central dashboard. Our smart access controls allow you to even offer private access or discounted pricing for major tenants! As the world transitions to electric vehicles, commercial properties will become the new places where drivers fuel up their vehicles with electrical power. Now is the time to future-proof your commercial real estate property. Contact Blink Charging today to speak to an expert and get a quote.