As electric vehicles (EVs) became increasingly popular in some locales, irrespective of the all but certain slowdown in the EVs market with the incoming Trump administration, some property owners continue exploring the installation of EV charging stations to attract tenants and visitors. EV charging station vendors often propose deals that seem too good to pass up, commonly utilizing government incentives to offer the installation of charging stations at no upfront cost.

Some context is useful: The 2024 International Energy Conservation Code (some version of which is adopted in 48 states) does not mandate the installation of EV charging infrastructure. And while legislation was proposed this year mandating infrastructure, and in some instances even charging stations themselves, from Maryland to Washington none of those statewide mandates were enacted. Legislation creating such mandates will be even less favored next year due to the current political climate.

So, an EV charging station is an amenity of choice. In recent years, some commercial property owners have perceived benefits from reallocating 9 feet wide by 18 feet long of real estate that is an existing parking space, often at a prime location in a parking lot, for use as an EV charging station.

Here is a due diligence checklist of key considerations including tactics to mitigate risks, for commercial property owners before moving forward with publicly available EV charging station installations:

1. Structural Integrity and Weight of EVs

EVs are significantly heavier than traditional vehicles due to their large batteries. For example, the battery of an electric GMC Hummer weighs about 2,900 pounds, almost the weight of an entire Honda Civic. This raises concerns about the structural soundness of older parking garages that weren’t designed to accommodate such loads. Property owners should:

• Evaluate the structural capacity of their parking facilities.
• Consider restricting EVs to surface lots or areas specifically reinforced to handle heavier vehicles.

We blogged in detail about this earlier this year, Banning EVs in Older Garages: Legislative Intent vs. Structural Reality.

2. Fire Risks

Lithium-ion battery fires in EVs can burn at extremely high temperatures and are difficult to extinguish. In confined spaces like parking garages, these fires pose serious safety hazards and even surface parking lot fires in EVs can spread easily. To mitigate risks:

• Ensure charging stations are equipped with robust fire safety measures.
• Limit EV charging and parking to open or surface areas away from buildings where possible.
• Verify that vendors maintain appropriate insurance coverage for fire incidents.

3. Vandalism and Theft

EV charging stations have increasingly become targets for vandalism and theft, particularly for the valuable copper wiring they contain. Damaged or inoperable stations can frustrate tenants and visitors. Property owners should:

• Install security features such as cameras and lighting around charging stations.
• Choose vendors that include anti-vandalism measures in their equipment designs.

4. Public Access and Legal Compliance

Some jurisdictions require charging stations to be publicly accessible, including if funded by government or public utility incentives. Property owners intending to reserve access for tenants must:

• Review local regulations including offstreet parking requirements in zoning regulations and incentive requirements.
• Consumer protection laws may require signage to make clear if the charger is free, pay as you go, or tied to a subscription when costs for a full charge in Maryland range from $11 to $50.
• Clearly define access rules and enforce them to prevent conflicts.

5. Usage Monitoring and Tenant Satisfaction

Given that many charging stations are marketed as tenant amenities, it has become clear that they require fair usage policies. Issues like cars parked long after charging is complete can create dissatisfaction. But so can non EV operators having to drive past an empty off street parking space with a charging station to park in a space further from the front door. Solutions include:

• Implementing time limits for charging.
• Using apps or systems that notify users when charging is complete.
• Establishing guidelines and penalties for misuse.

6. Ongoing Maintenance and Service

While vendors may promise maintenance, some agreements lack clear timelines for repairs or adequate penalties for non-performance. A J.D. Power report widely distributed earlier this year that more than 20% of EV drivers using commercial charging stations experienced charging failures and equipment malfunctions that did not allow the vehicle to charge. To avoid operational issues:

• Carefully review maintenance agreements.
• Ensure regular inspections and prompt repairs are included in the vendor contract.
• Prewriiten form agreements provided by vendors should be negotiated, including that some convey licenses if not easements to enter upon the land.

7. Data Privacy Concerns

Many EV charging stations collect user data, including sensitive information such as geolocation and financial details. Improper handling of this data can lead to privacy breaches. Property owners should:

• Choose vendors with robust data privacy and security policies.
• Include data protection clauses in agreements to safeguard tenant and user information.
• Make certain software updates are made as scheduled.

We blogged about this in one of our most popular posts this year, EV Charger Data Apocalypse.

8. Final Checklist considerations

There are other risks for commercial property owners and while they are rare, an owner should evaluate if it wants the risks of hazards from burns, electrocutions, and shocks and those are to people and do not include damages to batteries and the systems of vehicles improperly charged.

Little, if nothing is known about the lifespan of EV charging stations and while the distributor of a popular level 3 charges advertises “a 10 to 15 year” expected lifespan, frequency of use and environmental conditions can no doubt shorten that and make matters of replacement real.

And an overarching issue should be, while location is a key factor, the fair market value of an offstreet parking space is $15,000 in Baltimore and $60,000 in Chicago, with that value being reduced when an EV charging station is installed limiting parking efficacy in the 320 square feet. A recent study found Uber/ Lyft rideshare ‘drop off areas’ were perceived as a much more valuable amenity by urban and suburban tenants and while intrinsic, making it something they are willing to pay for, and likely a better use of the real estate.

Conclusion

EVs are more than a fad but it is yet to be seen whether or not installing charging stations is a forward thinking commercial property amenity.

Beyond the obvious shift in national politics that certainly put government incentives for EVs and charger installation in serious jeopardy, EVs themselves are not gaining wide market acceptance, including dramatically as Consumer Reports described EVs “had 42% more problems than gas vehicles on average,” a damning statement about reliability that may impact uptake beyond early adopters.

Where property owners are considering moving forward with an installation, they should weigh the benefits against potential risks. By proactively addressing structural, safety, legal, and operational challenges, often through agreements with vendors, property owners can in many instances successfully integrate EV charging stations into surface parking lots with the hope of positioning their properties for success.

Only time will tell if there is a significant growing market for EV chargers in the United States, or more likely in some submarkets, given the negative factors including the current political climate, but the installation of new EV charging stations would today be characterized as a “sell” and not even a hold. Beyond declining fundamentals, commercial real estate owners must also take into account the negative externality of tenants and visitors who do not drive EVs, who will drive past an empty offstreet parking space reserved for EV charging to seek out a parking space.

We have chosen to not install EV chargers at our suburban office building.
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