Electrifying Commercial Real Estate

“How do I get people here?” is one of the age old questions that exists in commercial real estate. Signs towering over roads, sign spinners, the beloved car wash tube man, and a mix of other lures have all been used in some way or another in an effort to draw traffic into a center by both landlords and retailers. Some work and some don't. To me, the best draws to a center have always been the retailers themselves. Call me crazy, but I've never pulled into a car dealership because of the giant inflatable gorilla sitting outside.

In the last decade, electric cars have stolen more automotive headlines than anything else. Their popularity continues to grow year over year, with record sales in 2021. Say what you will about electric vehicles, but with major brands like Volkswagon and Ford now moving their fleet toward electric, they are here to stay.

As an electric vehicle owner, I've loved nearly every part of owning it (go ahead and get that sigh of annoyance out of your system). There are a lot of ways that I think electric vehicles are pushing the industry forward, but that's not what this is about. All electric vehicles, at this point, have one shortcoming when being compared to the typical gas car; That's range. While more electric vehicles were sold in 2021 than ever, the EPA released a report that found the median range of an electric vehicle fell. It's a challenge for the vehicle owner, but this might be another opportunity for a center to differentiate itself.

Yes, one day in the future an electric vehicle will have much more range than those being produced now, but for now, less than ideal range is part of the deal. Many electric vehicle owners charge their car at home, but sometimes forget to plug it in, and topping off when out and about takes time. This is where the charging network comes into play.

Charging Networks.
Opportunity Or Gimmick For Landlords?

Charging networks, like ones operated by Tesla or Electrify America, offer a parking spot where you can plug in your car so it charges while you're away. Both have been working hard to create a network that is reliable and dense enough so electric vehicle owners can travel wherever they would like. Shopping centers, hotels, and other destination points are ideal places for charging stations. And this is a great opportunity for landlords to target a segment of the population!

A couple of years ago I went on a camping trip in northern Arizona. I took my electric vehicle along with some mostly well behaved boys and drove up towards the campsite. I knew that I'd need to stop along the way to charge in a shopping center in Payson. I pulled into a spot in the corner of the parking lot and plugged in. Since I had looked before, I knew there was a Basha's Grocery store we could stretch our legs while we waited. Once the car was charged up we got back in and continued up for a fun campout.

What I didn't mention is that I rarely, if ever, shop at Basha's in my day to day life. I also didn't mention that while we were there we stocked up on drinks and snacks. Basha's won my business, not because they were a store I loved but because they were in the right place. Charging stations in cities along major highways provide the retailers and landlords with a great opportunity to lock in the electric vehicle market.

Commercial Real Estate And Electric Vehicles

We don't know what electric vehicles will bring in the next decade, or beyond. Will there be a single charging station for all types of electric vehicles? Will ranges really improve to the point where range anxiety ebbs away? What do charging stations even look like in the future? I don't know! What I do know is that here and now there is an opportunity for centers that install charging stations. Not only do they target a specific part of the market, but they can also generate revenue from parking spots. In a state where we have lots of room to grow, that's an unusual way of generating revenue.

As always, we will provide the best data we can for our customers as things continue to evolve in the world around us. Who knows, maybe even one day we'll have electric charging stations in our database of merchants in REGIS Online! •

Last Modified July 8, 2022