Landlords are increasingly incorporating charging infrastructure into their buildings as part of plans to make their portfolios more sustainable.

Take Lendlease, which is installing at least 80 electric vehicle (EV) chargers in its properties, including popular shopping complexes in Australia.

In the U.S., industrial developer Clarion Partners has established more than 348 chargers for electric vehicles (EVs) across its properties.

“Buildings are the green petrol stations and power stations of our future,” says Renae Gasmier, head of Sustainability Consulting – Australia, JLL.

The projects come as EVs account for 14% of new car purchases globally, according to the Australian Electric Vehicle Council. China leads the way with EVs making up 28% of car sales in 2022, while Australia is lagging with only 4%. New EV sales in the U.S. made up 7% of total sales to January 2023, according to Inside EVs.

With electric cars on the ascendency, the property industry is looking to stay ahead of the curve.

“By building EV charging infrastructure, we’re not only meeting growing demand, but also creating a whole new source of power-grid support because the grid can also draw or store power from EV batteries,” says Gasmier.

Providing car charging stations isn’t just going to help countries toward their sustainability targets. Buildings deemed “green” drive higher occupancies, rents, tenant retention and asset values, according to a 2022 JLL survey of investors and occupiers.

As landlords and investors build strategies to incorporate EVs in buildings, legislation and other incentives are helping accelerate the shift to electric.

The European Parliament passed a law in February that effectively bans the sale of new petrol and diesel cars in the European Union from 2035, while the U.S. government is investing $7.5 billion in charging infrastructure, $10 billion in clean transportation, and more than $7 billion in EV battery components.

Australia’s National Electric Vehicle Strategy introduces the country’s first vehicle fuel efficiency standard, which will encourage manufacturers to supply more EVs into the country. It will also support integrating EVs more broadly by supporting initiatives such as battery recycling, infrastructure planning and charging inclusions in apartment building design, Gasmier says. 

It’s not only regulation pushing for change. Government tenants in Australia have been stipulating EV charging in leases as they plan to replace their fleets with electric cars over the coming years. The Australian government announced last August its intention for its cars to comprise 75% EVs across both new leases and purchases by 2025.

“We’ve seen an appetite and a noticeable gear shift from government agencies as they are preparing themselves for the electrification of their fleets,” says Gasmier. “Fleet vehicles make up around 17% of the total number of cars on the road in Australia but they’re responsible for 42% of road transport emissions. So, if fleets make the first move to decarbonise, it will have real effect for everyone.”