How to Add Value to Parking Facilities With EV Parking and Charging
Electric vehicle (EV) market watchers estimate that 13% of new car sales in the US in 2024 will be electric. This electric vehicle (EV) revolution is not only changing the way we drive, but also creating some exciting business opportunities for parking lot owners. That’s because drivers are no longer just looking for a parking space. They’re looking for a charging spot where they can convert time at rest now into miles on the road later. This value exchange lays the foundation for building a profitable EV charging business, generating more revenue per square foot for parking lot operators.
Savvy parking facility managers will recognize a unique opportunity to enhance their services, attract more customers, and generate additional revenue by embracing EV infrastructure. By investing in EV infrastructure, parking lot owners not only meet the current needs of EV drivers but will also position themselves as integral components of future transportation systems.
This blog explores how installing EV charging stations and the dedication of prime parking spots for EVs can transform parking facilities into dynamic hubs for the future.
A graph showing returning users vs. new drivers at EV charging stations.
How Can Parking Facilities Benefit From EV Parking and EV Charging?
There are approximately 2 billion parking spots in the US, serving less than 300 million vehicles. These are shared among:
Commercial lots (eg. Walmart) which are typically free to customers
Parking garages (usually premium rate affairs in prime city center locations)
Specialized parking facilities (eg. stadiums, airports, hospitals)
Private spaces for homes or multi-family units
Cities are required to meet minimum planning requirements that allocate a minimum number of parking spots for every building. As a result, drivers have a wide range of options to choose from. EV drivers, however, require more from their parking and are more discerning in their selection. Parking lot operators who can anticipate and satisfy their needs will significantly grow their market share, unlocking the following benefits.
1. Attract New Customers (And Retain Them)
EV drivers are more proactive in their choice of parking. They tend to pick their spot in advance, since they might have to factor in how much charge they have left to get them there. They are also more likely to plan their route around EV charging facilities. That added value feature can be enough to draw an EV-driving customer away from a rival store, or into a neighborhood they might otherwise have ignored.
Parking lots that offer EV charging literally put their location on the map (or app) that EV drivers use. In turn, any positive reviews further enhance business awareness and reputation. Drivers are by nature creatures of habit. Once they’ve found a business that guarantees parking, a gas station with good coffee, or a store that offers EV charging, they’re likely to return. That gives parking lot operators a chance to future-proof their business revenue. The icing on the cake is that right now, there are even generous federal tax credits available to offset the cost.
2. Source of Additional Revenue
A new customer is always the most costly acquisition for a business. But if that new customer is driving an electric vehicle, there’s a good opportunity for a parking lot owner to lock in their return business and generate additional revenue. That’s because gas-powered car drivers pay for time, whereas EV drivers are paying for power. They see the hour or two hours they spend parked up at the power station as an investment not a cost.
In response, parking lot operators can go further by segmenting their rates and offers to target their highest value customers. Drivers will pay a premium for dedicated parking spaces, for example.
3. Improved Occupancy Rates
Empty spaces are essentially a cost to a business that operates a paid parking lot, while occupied spaces are an opportunity lost for those that offer free parking. By installing electric vehicle charging stations, businesses can solve both these problems with a single solution.
Charging facilities attract EV drivers into otherwise empty spaces, and they will pay to stay, generating revenue from the time they spend on the lot. This even applies outside business hours. For example, EV drivers will still linger in the parking lot to charge even after the business has closed. Operators can respond by offering dynamic pricing to attract customers after peak hours (and use premium rates to deter drivers from overstaying during busy periods).
Subscriptions or membership models are another revenue-generating option, particularly when they include discounts or perks for local businesses. They encourage loyalty, build the business brand, and condition the driver to see charging as something to look forward to, instead of a necessary ordeal.
4 Diversified Services
Not all value derives from payments. Parking lot operators can also extract bonus revenue through improved efficiency and diversified services. In this case, the value generation applies to lots that already have an EV charging solution installed.
They can subsequently improve margins by minimizing operating costs through:
Automated access control
Revenue optimization tools
Improved payment processing and gateways
Dynamic pricing modules, and more
Because downtime is also critical, owners can also cut costs by implementing proactive station health monitoring so that issues are fixed before they impact potential revenue.
Partnering with EV Connect for Seamless Integration
EV Connect, a preferred EV charging provider for prominent entities like Marriott Hotels, offers not just charging solutions but a strategic partnership for parking lot owners. With EV Connect, parking facilities position themselves as forward-thinking and customer-centric spaces that cater to the evolving needs of the modern driver. Additionally, parking lot owners can unlock a host of advantages that go beyond traditional parking services.
How These Types of Parking Facilities That Can Benefit From EV Charging Stations
Multi-Unit Dwellings (MUD)
As the number of EV owners increases, the demand for EV charging solutions will also rise, particularly in high-rise apartments and condos. It might be a perk today, but soon it will be a must-have. In fact, it’s increasingly common for building codes to stipulate that a certain number of parking spaces must be for EV charging.
For property developers and landlords, this presents an opportunity to not only cater to the current demand but also to create a revenue stream. Billing tenants for kilowatts, incorporating charging fees into rent, or even offering free charging can make these parking facilities attractive to EV users.
City Municipalities and Parking Garages
In urban environments, public parking garages and municipal lots become critical charging points for EV drivers without access to home chargers. Cities can leverage this demand to serve their communities better while creating a much-needed revenue stream through billing drivers for charging services. Some of the costs can be offset by adding solar carports or overhangs to power EV charging stations.
Commercial Real Estate
Retail developments are a key battleground for installing EV charging stations. By attracting EV-driving customers, businesses can enhance their retail and hospitality offerings. As EV driver numbers grow, businesses that have not anticipated the shift by installing charging stations may find themselves left off the radar. EV drivers tend to spend time shopping while their vehicles charge, translating into increased revenue for retail establishments. Additionally, offering EV infrastructure in office space parking lots contributes to sustainability initiatives and can aid in talent acquisition and retention. It’s no use offering a company car as a perk if the employee can’t charge it, after all.
Hospitality Venues
Hotels provide an outstanding example of how to maximize revenue from dwell time, whether it’s offering premium-rate room service or bonus amenities, such as spa, bar, or gym. Now the parking lot can be an additional source of revenue (where it was previously a cost). Hotels that invest in EV infrastructure can charge customers a fee to plug in their vehicle, adding their name to the ‘EV-friendly’ category in the process when customers are searching online before booking.
Partnering for Success
EV Connect emerges as a valuable partner for parking lot owners seeking to implement robust EV charging infrastructure. Their expertise in determining the optimal number of charging stations and selecting suitable equipment ensures a seamless and efficient experience for EV users. Whether for commercial real estate developers, hotel owners, or municipalities, EV Connect's solutions position these entities to capitalize on the profitability of EV charging infrastructure.
In the dynamic landscape of modern transportation, the integration of electric vehicles (EVs) is reshaping the way people think about parking facilities. As the momentum towards EV adoption accelerates, parking lot owners find themselves at the crossroads of opportunity, and the installation of EV charging stations holds the key to unlocking a multitude of benefits.
In conclusion, the integration of EV Connect charging stations transcends traditional parking services, offering parking lot owners a strategic advantage in terms of enhanced image, increased exposure, and potential revenue streams. By embracing EV Connect's innovative solutions, parking facilities can play a pivotal role in the electric future, becoming hubs for the next generation of drivers.
Learn more about EV Connect’s innovative EV solutions today!