With a growing number of Americans now choosing to drive electric vehicles, it’s a great time for businesses to invest in the infrastructure that powers these eco-friendly cars. Learn how investing in EV charging can benefit real estate developers.
EV Adoption Rates Are on the Rise Across the US
More Americans are joining the EV movement than ever before. With new technology giving rise to longer-range vehicles and shorter charging times, drivers have begun to realize that buying an energy-efficient EV is a prudent move.
According to a recent Drive Electric article, US sales of plug-in EVs (PEVs) rose 9.38% over 2023 to nearly a million by the end of August 2024. It’s a trend that doesn’t show any signs of slowing down. 2023, too, saw EV sales records soar to new heights.
Investing in the infrastructure that keeps these energy-saving powerhouses on the road will likely be a prudent move for real estate developers in both commercial and residential projects. If you’re a real estate developer, it’s time to look at ways you can take advantage of the fast-growing EV movement.
1. Install EV Chargers in Strip Mall Builds
As an intro to a recent CNBC video points out, “foot traffic to strip malls is booming.” With locals trekking about 62 times a year to shop at their favorite strip mall on average, there’s a good chance that a growing percentage of that foot traffic drives an EV to get there.
EV sales statistics indicate that 6.8% of all the new car sales in the US were EV purchases, according to a July 2024 Edmunds report. Add that percentage to those drivers who have already purchased an EV, and you have a significant number of drivers who would appreciate the ability to charge their cars while they shop.
If your 2025 commercial real estate development plans include building a strip mall, consider installing EV charging stations to accommodate EV drivers. Since information about EV charging locations is available on various online platforms and charging network websites, your new shopping center will have a built-in set of new customers eager to check out the stores that lease space from you.
Don’t stop with new construction, though. If some of your current commercial holdings include strip malls, consider retrofitting a few parking spaces with EV chargers.
Plan for expansion as interest in EV ownership rises. According to a Utility Dive report, the percentage of EV drivers should reach 29% by 2030. Gradually expanding the number of available chargers to accommodate these new EV owners should help you retain the business you’ve worked so hard to earn.
2. Consider Including EV Charging Ports in Residential Construction
As a May 2024 YouGov report found, 28% of prospective EV buyers decide against purchasing an electric vehicle because they lack charging capability at home. Whether your real estate development company builds single-family homes, apartment buildings, or condominiums, you’re missing out on a growing number of buyers or renters if you don’t offer EV charging as an amenity.
For multi-family developments
Additionally, if you plan to upgrade your existing multi-family buildings’ parking lots or garages, think about retrofitting them with EV charging stations. Providing tenants with EV charging opens up your customer base to include EV owners. As the EV market grows, you’ll already have an edge to attract those new EV owners as tenants.
Furthermore, it’s well worth your time to pursue adding college students to your target market. As a Yale survey discovered, university students today look for ways to live a more environmentally friendly lifestyle. Having EV charging available at their apartments after they take on their first job would make your apartment complex one of their top choices.
Also, as a Berkeley study shows, there’s a gap between renters and homeowners in EV ownership – 1 in 130 homeowners also owns an EV, compared to only 1 in 370 renters. However, as an International Parking & Mobility Institute (IPMI) article points out, 15% of US renters actually want to purchase an EV – if only they could find housing that offers it. If your multi-family units provide charging opportunities, your buildings will attract the lion’s share of the tenants who do own EVs or want to buy them in the future.
And, as the proverbial cherry on top, several state governments and some utility companies provide funding for those multi-family developments that install EV charging stations for their tenants to use, according to the IPMI piece. Sustainability initiatives specific to multi-family housing – federal, state, and local – also can help offset your investment in EV charging infrastructure.
For single-family housing
According to the Berkeley study, about 0.87% of the nation’s homeowners also own EVs. That’s about three times the rate of EV ownership among renters.
That rate should grow as EV ownership increases nationwide. New home construction, then, should include installing EV charging stations to accommodate that growing number of homeowners.
3. Plan New Office Buildings with EV Charging in Mind
Have a plan in the works to build a new office building? When conducting your feasibility study, be sure to look into your prospective tenants’ customer base and workforce to see how much interest there would be in installing EV charging stations in the office parking spaces.
Since EV ownership is on the rise nationwide, it would be prudent to include at least a few charging spots in your plans. However, if your tenants’ target customers or employees’ demographics suggest a higher rate of EV adoption than the average, you might want to plan to include more chargers to make your tenants’ businesses attract more quality customers and employees.
Tech and research companies, environmental activist organizations, educational institutions, and other prospective tenants in pursuit of innovation will be more likely to have employees and clients who drive EVs. Studies show that future-focused, tech-obsessed people number among the top EV adopters.
4. Incorporate EV Charging into New School Facilities
If your school district has a high population of EV owners, think about including EV chargers in your parking lot design. EV-owning parents who attend PTA meetings, football games, and other activities will likely appreciate the convenience of charging their cars while they support their children’s education and extracurricular activities.
EV-driving students, too, can charge their cars even as they study for their next exams. Teachers who own EVs, too, will love a workplace that cares enough about its faculty to provide charging stations for their cars.
But don’t forget charging for the bus fleet. Many school districts are now moving toward electrifying their bus fleets. Including provisions for bus garages to include EV charging stations can help make that transition smoother.
Speak to the school board about their short-term and long-term plans for their bus fleets. Then, tailor your proposed design to their needs.
5. Increase the Value of Your Current Real Estate Holdings with EV Charging
Whether you have a portfolio of commercial or residential properties, adding EV charging to your amenities is a wise move, especially as EV usage rises across the US. In the United Kingdom, where the EV adoption rate is higher than that in the United States, evidence points to a 10-20% increase in commercial property value for facilities that have installed EV charging infrastructure. As EV usage increases in the US, developers who have invested in EV charging stations for their properties will likely see their property values rise.
As for commercial properties, research shows that installing EV chargers raises a home’s value by as much as 3.3%. Adding EV charging infrastructure to new single-family and multi-family home builds will help you get top dollar for your properties.
6. Use V2G Charging at Your Properties to Create a New Revenue Stream
Installing vehicle-to-grid (V2G) chargers at your multi-family properties can help you earn money by feeding energy back into the grid during peak usage. Depending on your utility, you’ll either get a check for the electricity you’ve provided to them or a credit on your property’s electric bill. Either way, it’s a win-win for your company’s bottom line.
Find New Ways EV Charging Can Propel Your Company to New Heights
At the EV Charging Summit, you’ll hear presentations by some of the world’s foremost experts in EV charging. Learn from them how you can leverage EV charging infrastructure to boost your real estate development company to new heights in the coming year and beyond.
With sessions aimed specifically at your interests as a real estate developer and others showing how businesses of all kinds can take advantage of the growing rate of EV adoption, you’ll learn more in a few days than a year’s worth of research at the office. Don’t miss your opportunity to build and future-proof your business. Reserve your spot at the next EV Charging Summit Event today!
