EV Charging Stations and Business Continuity in Commercial Real Estate

The commercial real estate (CRE) sector is experiencing a dramatic shift with the rise of electric vehicles (EVs). As more tenants and customers adopt EVs, CRE companies must adapt to meet their evolving needs and attract new business¹. A crucial aspect of this adaptation is the integration of EV charging stations and ensuring business continuity, especially in the face of power outages and other disruptions. This report explores the critical intersection of EV charging, business continuity, and CRE, examining the challenges, opportunities, and strategies for success in this dynamic landscape.

How Power Outages Can Disrupt EV Charging and Business Operations

Power outages present a significant challenge to EV charging infrastructure. When the power goes out, EV charging stations become unusable, potentially leaving EV drivers stranded and disrupting business operations that rely on EVs². This challenge is exacerbated by the increasing dependence on EVs for transportation, making it essential for CRE companies to address power outage risks and implement robust business continuity measures³. Notably, the frequency and severity of power outages are increasing due to factors like extreme weather events and aging grid infrastructure, further emphasizing the need for resilient EV charging solutions⁴.

During a power outage, EV owners cannot charge their vehicles at charging stations that lack backup power⁵. While most EVs have adequate range for typical daily commutes, extended outages can severely limit mobility and disrupt businesses that depend on EVs for their operations⁶. This vulnerability underscores the need for CRE companies to incorporate backup power solutions and resilient infrastructure to ensure continuous EV charging capabilities⁷.

Limitations of Generators for EV Charging in Commercial Buildings

While generators can serve as a backup power source during outages, they have limitations in commercial buildings, particularly when it comes to supporting the power demands of EV charging stations. Generators require a continuous fuel supply, which can be difficult to maintain during prolonged outages, especially if access to fuel is limited⁸.

In general, generators have several limitations that CRE companies must consider:

• Noise and Aesthetics: Generators can be noisy during operation, which can be disruptive in commercial settings. Careful placement and noise mitigation strategies are necessary to minimize disturbances and maintain aesthetic standards⁹.
• Maintenance and Reliability: Generators require regular maintenance to ensure reliable operation. Factors such as fuel contamination, battery system issues, and overheating can lead to generator failure¹⁰.
• Capacity: Generators may not have sufficient capacity to support the increased power demands of EV charging stations, especially during peak usage times when multiple vehicles require charging simultaneously⁴. To charge an EV, a generator needs to have a power output of at least 1,500 watts, with 3,000 watts being ideal, especially for larger vehicles¹².

These limitations highlight the importance of exploring alternative backup power solutions and designing resilient EV charging infrastructure that can function effectively even during extended power outages.

Attracting and Retaining Clients with EV Charging and Business Continuity

CRE companies can leverage EV charging stations and business continuity as attractive features to secure new clients and retain existing ones. By offering reliable and resilient charging infrastructure, CRE companies can differentiate themselves from competitors and appeal to tenants with sustainability goals and a growing reliance on EVs³.

Here's how EV charging and business continuity can benefit CRE companies:

• Enhanced Tenant Satisfaction: EV charging stations are becoming increasingly desirable amenities for tenants, particularly those with EVs or who are considering transitioning to electric mobility. Providing convenient and reliable charging options can enhance tenant satisfaction and attract new businesses seeking to offer this perk to their employees and customers¹³.
• Increased Property Value: Properties with EV charging capabilities often command higher rents and sale prices. A study found that commercial properties with EV chargers can generate up to $0.50 per kWh in revenue, potentially adding $1,500–$3,000 in monthly income per charging station¹⁴.
• Support for Electric Fleets: As the adoption of EVs expands beyond personal vehicles, businesses are increasingly electrifying their fleets. CRE companies need to adapt to this trend by providing charging infrastructure that can accommodate the needs of commercial EVs, such as delivery trucks and service vehicles¹⁵.
• Reduced Range Anxiety: One of the main barriers to EV adoption is "range anxiety," the fear of running out of charge before reaching a charging station. By offering reliable and readily available charging infrastructure, CRE companies can alleviate this concern and attract tenants who value convenient charging options³.
• Employee Retention and Attraction: In a competitive job market, offering EV charging as an employee benefit can be a valuable tool for attracting and retaining top talent¹⁶. This is particularly relevant for companies with younger employees who prioritize sustainability and appreciate employers who support their EV choices.

By proactively addressing these factors, CRE companies can position themselves as leaders in sustainable and resilient real estate solutions.

Setups and Considerations for EV Charging Stations in Commercial Properties

CRE companies have various options for integrating EV charging stations into their properties. Key considerations include:

• Resilient Infrastructure: Designing charging stations with backup power sources, such as on-site solar panels and battery storage, can enhance resilience during outages¹⁷.
• Redundant Power Lines: Utilizing multiple substations to provide power to charging stations can ensure continued operation even if one substation fails².
• Mobile Charging Solutions: Deploying mobile charging stations can provide temporary solutions during outages or emergencies¹⁸.
• Safety Measures: Incorporating safety features like emergency shut-off switches, ground fault circuit interrupters, and fire suppression systems is crucial¹⁹. To further mitigate fire risks, infrared cameras can be used to detect potential battery anomalies and hotspots before they ignite²¹.
• Accessibility and Placement: Strategically placing charging stations in well-lit, visible areas with easy access can enhance safety and convenience¹⁹.
• Cybersecurity: Implementing cybersecurity measures to protect charging stations from cyberattacks is essential²².
• Reliability and Accessibility: It is crucial to choose reliable charging stations that are compatible with a wide range of EV models and have user-friendly interfaces²³. This ensures that EV drivers have a positive charging experience and can rely on the availability of charging infrastructure.
• Connection Types: Different types of EV charging connections may be required depending on the specific needs of the property and the types of EVs being charged.

By carefully considering these factors, CRE companies can design and implement EV charging infrastructure that meets the needs of their tenants, enhances safety, and supports business continuity. It is also essential to anticipate future needs and incorporate scalable solutions to accommodate the growing adoption of EVs.

Using Business Continuity as a Driver for Obtaining More Clients

CRE companies can use business continuity as a powerful tool to attract clients by:

• Highlighting Resilient Infrastructure: Emphasizing the availability of backup power, redundant systems, and disaster preparedness measures can attract clients seeking reliable and secure facilities³.
• Offering EV Charging as a Premium Amenity: Providing EV charging stations with business continuity features can attract tenants and customers who value sustainability and convenience²⁴.
• Promoting Sustainability Goals: Showcasing a commitment to environmental responsibility and sustainable practices can attract clients seeking to align with eco-conscious values²⁵.
• Demonstrating Cost Savings: Highlighting the potential cost savings associated with EV charging and reduced energy consumption can appeal to cost-conscious clients²⁶.
• Promoting EV Charging Resilience: CRE companies can actively promote the resilience of their EV charging infrastructure as a key selling point. This can include highlighting backup power solutions, redundant power lines, and strategies for maintaining charging capabilities during disruptions²⁷.

Competitive Advantage through Business Continuity

In today's competitive CRE market, business continuity is not just about mitigating risks; it's about gaining a competitive edge. By prioritizing business continuity and integrating it with EV charging solutions, CRE companies can differentiate themselves and attract discerning clients.

• Meeting Tenant Needs: As businesses increasingly prioritize tenant experience and satisfaction, offering resilient EV charging infrastructure can be a significant differentiator²⁴. This demonstrates a commitment to meeting the evolving needs of tenants and ensuring uninterrupted operations, even during unforeseen events.
• First-Mover Advantage: By proactively investing in EV charging and business continuity, CRE companies can establish themselves as leaders in the industry²⁴. This first-mover advantage can attract clients who value innovation and forward-thinking solutions.
• Sustainability Leadership: Integrating business continuity with sustainable practices, such as EV charging and renewable energy sources, can enhance a company's reputation and attract clients who prioritize environmental responsibility³.

Case Studies and Examples of Successful Implementations

While specific case studies on CRE companies with successful EV charging and business continuity measures are limited in the available information, some examples illustrate the potential benefits and strategies:

• Microgrids for Resilient Charging: The Brookville Smart Energy Bus Depot in Maryland utilizes a microgrid with battery storage, solar panels, and backup generators to ensure continuous EV charging for public buses¹⁷. This example demonstrates the effectiveness of microgrids in enhancing resilience and promoting sustainability.
• Mobile Charging Stations for Emergency Response: Pacific Gas & Electric (PG&E) has implemented a program to deploy mobile EV chargers at customer resource centers during power outages¹⁸. This initiative highlights the use of mobile charging solutions to support EV drivers during emergencies.
• Bidirectional Charging for Grid Resilience: Ford's F-150 Lightning truck with bidirectional charging capabilities allows it to power homes during outages²⁸. This example showcases the emerging role of bidirectional charging in not only providing backup power during outages but also in supporting grid stability and potentially generating revenue through vehicle-to-grid (V2G) services²⁹. By strategically managing EV charging and discharging, CRE companies can contribute to grid resilience and potentially benefit from participating in V2G programs.

ROI of Investing in EV Charging Stations and Business Continuity

Investing in EV charging stations and business continuity can provide a significant return on investment (ROI) for CRE companies³⁰. By attracting tenants, increasing property values, and reducing operating costs, EV charging infrastructure can contribute to a company's bottom line³¹.

Calculating the ROI of EV charging stations involves considering factors such as:

• Installation Costs: The initial investment in charging equipment and infrastructure.
• Operating Expenses: Ongoing costs for electricity, maintenance, and software.
• Charging Fees: Revenue generated from charging fees collected from EV drivers.
• Partnerships and Advertising: Potential revenue from partnerships with EV charging networks or advertising opportunities on charging stations³⁰.

Studies have shown that EV charging stations can generate substantial revenue, with estimates ranging from $3 to $6 per hour of use³¹. Additionally, government incentives and tax credits can further enhance the ROI of EV charging investments³².

Business continuity measures also contribute to ROI by:

• Minimizing Downtime: Reducing the financial impact of disruptions by ensuring continuous operations³³.
• Preventing Revenue Loss: Safeguarding against lost productivity, sales, and customer dissatisfaction during outages.
• Maintaining Tenant Satisfaction: Ensuring tenant satisfaction and retention by providing reliable and resilient facilities³⁴.

By implementing robust business continuity plans and investing in resilient infrastructure, CRE companies can protect their assets, maintain tenant satisfaction, and ensure long-term profitability³⁴.

Conclusion

The integration of EV charging stations and business continuity is essential for CRE companies to thrive in the evolving real estate landscape. By embracing resilient infrastructure, implementing comprehensive business continuity plans, and leveraging EV charging as a competitive advantage, CRE companies can attract clients, enhance tenant satisfaction, and ensure long-term success in the age of electric mobility.

However, the implications of these findings go beyond simply adding EV chargers to properties. CRE companies must adopt a proactive and strategic approach to EV charging and business continuity. This includes:

• Anticipating Future Needs: The demand for EV charging will continue to grow as EV adoption accelerates. CRE companies need to anticipate this demand and incorporate scalable solutions that can accommodate future needs.
• Prioritizing Resilience: Given the increasing frequency and severity of power outages, resilient EV charging infrastructure is crucial. This includes investing in backup power solutions, redundant systems, and disaster preparedness measures.
• Embracing Innovation: CRE companies should explore innovative solutions like bidirectional charging, which not only provides backup power but also supports grid stability and potential revenue generation through V2G services.

By taking these steps, CRE companies can not only mitigate risks but also gain a competitive edge, attract and retain tenants, and position themselves for long-term success in the era of electric mobility.

Works cited

1. EVs Electrify the CRE Space - Matthews Real Estate Investment Services, accessed January 19, 2025, https://www.matthews.com/thought-leadership-evs-electrify-the-cre-space/
2. When the power goes out, can EV charging stay on? - POWERGRID International, accessed January 19, 2025, https://www.power-grid.com/der-grid-edge/electric-vehicles/when-the-power-goes-out-can-ev-charging-stay-on/
3. Future-Proof Your CRE Portfolio: The Strategic Necessity of EV Charging Infrastructure, accessed January 19, 2025, https://www.ioptimizerealty.com/blog/future-proof-your-cre-portfolio-the-strategic-necessity-of-ev-charging-infrastructure
4. Install a Generator To Protect Your Commercial Building From Costly Power Outages, accessed January 19, 2025, https://propmodo.com/install-a-generator-to-protect-your-commercial-building-from-costly-power-outages/
5. How to Charge Your EV During a Power Outage - Innovation & Tech Today, accessed January 19, 2025, https://innotechtoday.com/how-to-charge-your-ev-during-a-power-outage/
6. Does a Power Outage Impact My EV Battery? - VinFast Global Community, accessed January 19, 2025, https://community.vinfastauto.us/forums/discussion/does-a-power-outage-impact-my-ev-battery/
7. Electric Vehicles and Power Outages - Earth911, accessed January 19, 2025, https://earth911.com/eco-tech/electric-vehicles-and-power-outages/
8. Using Generators During Blackouts: Top 3 Things To Know - PowerMaster Electric, accessed January 19, 2025, https://powermasterelectric.com/tips-and-tricks-/using-generators-during-blackouts-top-3-things-to-know/
9. Pros and Cons of Commercial Generators - PowerTech, accessed January 19, 2025, https://powertechteam.com/the-importance-of-a-circuit-breaker-repair-copy/
10. Top Reasons Commercial Generators Fail | Woodstock Power, accessed January 19, 2025, https://woodstockpower.com/blog/top-reasons-commercial-generators-fail/
11. Top 7 Reasons Commercial Generators Fail and Prevention Tips - CD & Power, accessed January 19, 2025, https://www.gotpower.com/commercial-generator-failure/
12. The Most Affordable Way to Keep Your EV Running During an Outage | Sunnova, accessed January 19, 2025, https://www.sunnova.com/watts-up/standby-generator-to-charge-ev-during-outage
13. CRE tackles the big demand and cost of EV charging - NAIOP Maryland Chapter, accessed January 19, 2025, https://www.naiopmd.org/news/cre-tackles-the-big-demand-and-cost-of-ev-charging/
14. How EV Charging Stations Are Revolutionizing Real Estate - GO TO-U, accessed January 19, 2025, https://go-tou.com/en/news/how-ev-charging-stations-revolutionizing-real-estate
15. CRE Can't Keep Up with Electric Vehicles, accessed January 19, 2025, https://creonesource.com/2023/08/12/cre-cant-keep-up-with-electric-vehicles/
16. How EV Charging Stations Can Help Your Business Attract and Retain Employees - News, accessed January 19, 2025, https://cyberswitching.com/how-ev-charging-stations-can-help-your-business-attract-and-retain-employees/
17. Empowering Tomorrow: Considerations for Resilient Electric Vehicle Infrastructure Amidst Natural Disasters, accessed January 19, 2025, https://nccleantech.ncsu.edu/2023/12/18/resilient-electric-vehicle-infrastructure-amidst-natural-disasters/
18. Resilience and Futureproofing Considerations for EV Charging Infrastructure Webinar, accessed January 19, 2025, https://www.youtube.com/watch?v=p7zquUqAIDU
19. Physical Safety and Security at Electric Vehicle Charging Sites - Joint Office of Energy and Transportation, accessed January 19, 2025, https://driveelectric.gov/files/physical-site-security.pdf
20. Electric Vehicle Charging Safety Tips - U.S. Fire Administration, accessed January 19, 2025, https://www.usfa.fema.gov/downloads/pdf/publications/electric-vehicle-safety-handout.pdf
21. 5 Safety Tips for EV Charging Stations, accessed January 19, 2025, https://evchargingsummit.com/blog/safety-tips-for-ev-charging-stations/
22. EV Charging: A Risk Management Guide - Horizonscan, accessed January 19, 2025, https://www.horizonscanbcp.com/2023/08/02/ev-charging-a-risk-management-guide/
23. Here's how to integrate EV chargers into your business process - Soolutions, accessed January 19, 2025, https://www.soolutions.com/en/blog/heres-how-to-integrate-ev-chargers-into-your-busin/
24. Wait and Cede: Why It's Time Real Estate Developers Rethink EV Charging | ChargePoint, accessed January 19, 2025, https://www.chargepoint.com/blog/wait-and-cede-why-its-time-real-estate-developers-rethink-ev-charging
25. Understanding the Business Case for Electric Vehicle Charging Infrastructure - ZEV Alliance, accessed January 19, 2025, https://zevalliance.org/wp-content/uploads/2024/01/Understanding-the-Business-Case-for-Electric-Vehicle-Charging-Infrastructure_jan24.pdf
26. Driving profitability in US public EV charging | Arthur D. Little, accessed January 19, 2025, https://www.adlittle.com/en/insights/viewpoints/driving-profitability-us-public-ev-charging
27. How EV Chargers May Benefit Your CRE Property | Partner ESI, accessed January 19, 2025, https://www.partneresi.com/resources/articles/how-ev-chargers-may-benefit-your-cre-property/
28. Electric Vehicles and the Case for Resilience - Clean Energy Group, accessed January 19, 2025, https://www.cleanegroup.org/electric-vehicles-and-the-case-for-resilience/
29. Enhancing Grid Resilience with Integrated Storage from Electric Vehicles - Department of Energy, accessed January 19, 2025, https://www.energy.gov/oe/articles/eac-recommendations-enhancing-grid-resilience-integrated-storage-electric-vehicles-june
30. ROI of EV Charging Stations as an Investment - Ampcontrol, accessed January 19, 2025, https://www.ampcontrol.io/post/roi-of-ev-charging-stations-as-an-investment
31. EV charger ROI: return on investment electric vehicle charger, accessed January 19, 2025, https://www.electricvehiclechargers.net/ev-charger-roi-return-on-investment-electric-vehicle-charger/
32. The Surprising ROI of EV Charging Stations - EV Connect, accessed January 19, 2025, https://www.evconnect.com/blog/roi-of-ev-charging-station
33. Calculating the ROI of Business Continuity Management - Noggin, accessed January 19, 2025, https://www.noggin.io/resources/calculating-the-roi-of-business-continuity-management
34. How to Maximize ROI in CRE - Matthews Real Estate Investment Services, accessed January 19, 2025, https://www.matthews.com/thought-leadership-how-to-maximize-roi/