A property sector with which we are becoming better acquainted relates to charging points for electric vehicles. An EV charging hub is defined as a site or location with more than six EV chargers. Many are now sited at retail parks, petrol stations, supermarkets and the like but other less obvious and sometimes smaller locations are also now benefitting, as can be confirmed by our professional valuation department. 

As would be expected, the best performing charging hubs are along or close to major routes and will generally need to provide some amenities to interest or support EV drivers whilst their cars are charging. These usually include some form of food/drink outlet, wc facilities, or shopping opportunity. Owners who already provide these amenities on their sites should perhaps be considering the benefits of establishing a public charging hub within their site if they can secure a grid connection.

More than one lease structure exists, and returns will be heavily location dependent but rents are currently tending to range between £2,000 and £4,000 per charger per annum in rental income, with index linked uplifts sometimes “cap and collared” at one to three percent for a 20–25 year term. This is an improvement on earlier returns a couple of years ago, with evidence of some rents reaching £5,000 per charger per annum in strong locations. On such a basis, over the term of the lease, landlords could potentially expect a return between £900,000 and £1,250,000 for 8–15 car parking spaces. 

Other key benefits include an upgraded site power capacity at virtually zero cost to the landlord, as well as increased footfall to their site, generating increased turnover for owners themselves, or their tenants.

Local Authority consents are of course required but this can be aided by the undoubted environmental, social and governance (ESG) credentials which EV charging brings, with its contribution towards carbon zero. This can, of course, enhance property value and marketability. 

Finally, with the commercial property market becoming more differentiated over the recent past between the various types of property, so the need for professional advice upon ongoing changes becomes greater. The team at Armitstead Barnett are always happy to talk over your options.