On-site EV chargers have quickly shifted from a nice-to-have amenity to a necessity for multifamily residents. More than one-third of renters surveyed are interested in at-home charging as an amenity and nearly 50% say they are considering an EV as their next vehicle.

While 80% of EV charging takes place at home, an estimated 5% or less of that is at a multifamily property. This is often due to a “charging gap,” which is a top reason some drivers hesitate to make the switch from all-gasoline vehicles.

For multifamily property owners, this demand creates both a challenge and an opportunity. Installing EV charging stations helps modernize your properties, attract and retain residents, move towards sustainability and ESG goals, and boost investor confidence. Still, installing EV charging infrastructure can be costly—between equipment, labor, potential utility upgrades, and the electricity to power stations, these expenses add up.

While there are plenty of low or no-CapEx funding options to reduce upfront installation costs, some multifamily owners may also qualify for Low Carbon Fuel Standard (LCFS) programs for ongoing financial return.

Understanding Low Carbon Fuel Standard (LCFS) Programs

LCFS is a market-based program designed to reduce transportation emissions by rewarding the use of cleaner fuels, like electricity for EVs. Each time electricity replaces gasoline or diesel, it lowers carbon emissions, and those reductions can be converted into LCFS credits.

These credits are bought and sold on a private, regulated market where fuel producers purchase them to offset their carbon output. For EV charging providers, that means turning clean energy use into real financial value.

While California, Oregon, and Washington have active LCFS programs, California is the only state that currently includes multifamily property owners.

California’s LCFS for Multifamily Properties

Under California’s program as of July 1, 2025, multifamily housing property can generate credits based on their EV charger energy consumption. With just the charging data, you can unlock a new revenue stream to offset charging costs, pay for maintenance, or invest in new chargers across any site in California.

Property owners must:

Pay for the electricity used by Level 2 or Level 3 chargers.
Use networked (“smart”) chargers that measure electricity accurately.
Serve at least four (4) condominium units or three (3) apartment units.
Offers communal chargers where any tenant can use the charging port.

For qualifying properties, LCFS credits can help offset both installation and operating costs, making EV charging a more attainable and financially sustainable amenity.

Why California Multifamily Owners Should Participate in the LCFS Program

Installing EV chargers at your properties is an investment, and one that often gives property owners sticker shock. But California’s LCFS program changes the math for your properties across the state, turning a long-term investment into one that offers payback quickly.

When residents or visitors charge their vehicles, your property earns carbon credits that can be sold on California’s private LCFS market. That’s a new revenue stream to offset installation costs and utility bills, and to help you allocate budget to other amenities that modernize your communities.

Beyond the dollars, there are additional advantages:

LCFS credits can recoup part of what you spend on charger installation and ongoing electricity use. It’s a revenue stream that grows as EV adoption rises among tenants.
The credits you generate have market value. You’re being rewarded for cutting carbon use, with payments that continue for years.
Renters pay attention to EV charging. It’s a marker of convenience and progress, and it signals that the property is built for where transportation is headed, not where it’s been.
LCFS participation gives you data-backed proof of emission reductions, a metric investors and residents increasingly expect to see.
Charging access will soon be a standard expectation. Getting ahead of that curve now protects your property’s relevance and long-term value.
Every kilowatt-hour delivered through your chargers helps close the state’s charging gap and moves California closer to its clean transportation goals.

LCFS isn’t just a policy program—it’s a bridge between sustainability and profitability. For multifamily owners, it’s a way to modernize responsibly and make the numbers work.

Your One-Stop Partner for Every Step in the EV Charging Process

The buying and selling process of LCFS credits is often cumbersome and can result in a major administrative burden. Having a partner that facilitates these transactions helps to simplify the process and ensures you’re unlocking the full revenue potential of credits. 

SitelogIQ partners with FuSE for enrollment and ongoing management support.

In addition to being your consultant and contractor, we’re also a strategic partner that manages all phases of a project from planning and utility coordination to installation and incentive management.

We’re here to help you navigate the entire EV charging installation process. Let’s chat about your needs today. 

Businesses that operate in the PJM Interconnection region could see energy costs climbing soon—and for some, it may be significant. 

PJM Interconnection, the organization responsible for managing electricity across 13 states in the Mid-Atlantic and Midwest regions and Washington D.C., has announced a major increase in capacity prices for the 2025-2026 delivery year and beyond.

Starting in June 2025, some commercial customers could see a rate hike of up to 29% on their capacity price, which determines the cost of electricity reliability.  

While businesses across various industries could see negative bottom-line impact with the upcoming PJM rate increase, it also presents an opportunity to rethink energy strategies. Instead of simply reacting to the rising costs and paying a higher energy bill, there are ways for business owners to take back control. 

What’s Causing the PJM Rate Increase? 

PJM is a grid operator that ensures the reliability of power. To maintain that reliability, grid operators plan years ahead to make sure there is enough electricity to supply future demand. One method of planning used is an annual capacity auction, which helps secure the commitments from energy resources like power plants to be available when needed, especially during peak demand periods or emergencies. 

Following the most recent capacity auction, PJM’s price for the 2025-2026 delivery year is expected to rise from $50 to $269.97 per megawatt-day. 

The drastic increase is driven by a few key factors: 

Issues with gas power plants operating in extreme weather 

An interconnection backlog 

Higher demand from growing industries 

Overall grid reliability issues 

As a result, PJM must pass those higher costs along to both residential and commercial energy users, leading to a steep increase in electricity rates. And with grid reliability still a concern, the trend of rising capacity costs could continue in future auctions. 

What Businesses Will Be Impacted by PJM Rate Increases?  

Any business in PJM’s territory that relies heavily on energy will feel the impact as operating costs rise, especially those with already tight budgets. However, there are some that may feel the impact more than others. 

Hospitals and Healthcare Systems 

Healthcare systems are always under pressure to keep costs down while providing the best patient care possible. Hospitals and healthcare facilities operate 24/7, meaning energy is a constant and a major operating expense. As these price increases roll out, healthcare systems will need to find ways to manage rising electricity costs while maintaining patient care standards. 

Rising energy bills could also limit funding for other areas, making energy efficiency a top priority to help keep costs in check. 

Industrial Companies 

For industrial companies that rely heavily on energy-intensive machinery, rising electricity costs are a major concern. Manufacturing processes often run around the clock, and the cost of energy can make or break profitability.  

Increased costs could affect the price of goods manufactured, and companies may need to explore ways to reduce energy consumption or alternative energy sources to keep production running smoothly and cost effectively.   

Auto Dealerships 

Showrooms, service centers, and parking lots at auto dealerships all require energy, and with prices increasing, so will overhead costs. That means higher bills for lighting, HVAC, and service operations. And for dealerships looking to expand their electric vehicle (EV) offerings, there’s an added complexity of powering charging infrastructure, potentially making energy bills even more unpredictable. 

Commercial Real Estate (CRE) Portfolios 

CRE owners, especially those with multi-tenant properties, will also face pressure as electricity prices rise. Increased operating costs could reduce net operating income (NOI), particularly for owners and operators of office buildings, retail spaces, and multifamily communities. Additionally, properties with high energy-consuming operations may face rising utility costs that could impact both the tenants and owner. 

Owners may need to pass increased energy costs to tenants or find a way to offset rising expenses through energy-efficient property upgrades.  

How Can Businesses Combat PJM’s Rising Costs? 

There are ways for businesses to avoid PJM’s rate hike, with one option being distributed generation (DG) solutions. A DG system typically includes a power generation source (i.e. solar) and energy storage (i.e. battery storage), which enables businesses to generate their own power on-site.  

DG systems help to stabilize energy costs and avoid volatile utility rates. Additional benefits include: 

Reduced energy costs due to less power being purchased from the grid 

Less reliance on the grid during peak demand hours when power is most expensive 

More control over your energy supply 

Ability to maintain operations during outages or peak demand periods 

New revenue streams by selling energy back to the grid 

Reduced carbon emissions to meet sustainability and ESG goals 

Your Partner for Every Step of the Distributed Generation Process 

SitelogIQ is your one-stop partner for all project phases of distributed generation solutions. In addition to being your consultant and contractor, we’re also a strategic partner that manages all phases of a project from planning and utility coordination, to installation and incentive management. Our team also helps you identify funding strategies and navigates incentive applications and management on your behalf—we ensure you never leave money on the table.  

As operating expenses continue to rise for businesses, we’re here to help make yours more energy efficient and help you combat increasing costs. Let’s chat about your specific needs today. 

You’ve probably seen the news by now that the Federal Reserve slashed interest rates by a half-point—the first rate cut since the start of the COVID-19 pandemic and more than the quarter-point reduction that most analysts were predicting.   

Commercial Real Estate (CRE) owners and operators felt the burden of high interest rates these last few years more than some other industries. High interest rates raise the bar for business owners, setting hard-to-achieve return targets for each investment.  

Auto was another hard-hit industry. High interest rates can decrease vehicle demand by making financing more expensive and sales cycles longer. This necessitated dealership owners to adapt their strategies to maintain profitability.  

What Does the Fed’s Interest Rate Cut Mean for Businesses? 

The interest rate cut has a huge impact on consumers, from mortgages to auto loans to credit cards. It also signals something much larger: This move has been widely interpreted as an indication that the economy is getting the “soft landing” that regulators were targeting.  This means executives can feel comfortable shifting their focus from protecting against worst case risks to investing in their businesses. 

For CRE owners, lower rates create a more favorable environment for buying, selling, and, most importantly, investing in property upgrades.  

Experts also predict good news for auto dealerships. Car loans are highly responsive to Federal interest rates. This, coupled with the availability of vehicles right now, means prices likely won’t go up—resulting in more customers for dealerships. More customers willing to spend could also result in positive momentum for EV adoption. 

This shift in economic outlook not only encourages executives to invest in their businesses, but also creates a more conducive landscape for location improvements that can attract tenants and customers. 

If you’ve paused or slowed down property improvement projects, now is the time to revisit them. Here’s why. 

Why Is Now a Good Time to Revisit Paused Projects?

Over the last few years, cost-conscious business owners became wary of launching new projects or raising capital. This may have led to slow playing or completely pausing any sort of location upgrade project. 

But as interest rates drop, so does the pressure. The need for massive returns diminishes, and projects that once seemed too risky or expensive can now offer a more reasonable path to profitability. When borrowing costs are lower, business owners are less concerned about raising the necessary capital for improvements, and this opens the door for action.  

If you’ve been waiting for the right moment to restart sustainability initiatives, modernization projects, or tenant- or customer-attraction upgrades, that moment is now. 

What Does the Rate Cut Mean for My Competitive Strategy? 

Market conditions are signaling that right now is a good time to revisit key investments you may have sidelined.  

Keep in mind this is not only about resuming projects. It’s also about preparing for changing customer and tenant demands, and ensuring your business or real estate property is well positioned to compete. As interest rates drop, other business owners will also be revisiting their plans, and the competition for tenants, visitors, and/or customers at your properties will continue to grow.  

When thinking about projects to reopen, consider asking these questions: 

Is now the time to centralize operations to improve project efficiencies? 

Do we have projects that are nearly complete that we can quickly get over the finish line? 

Are we positioned to attract higher-value tenants or customers? 

Can we meet current tenant or customer-demands (example: EV charging)? 

Can we target industries that are thriving in the current economic climate? 

If we wait, could competitor properties outpace us in amenities, sustainability, or tenant / customer experience? 

Is our portfolio positioned to meet future energy efficiency benchmarking requirements or mandates?  

Can we repurpose underutilized space to meet ESG goals?  

What role can project upgrades play in tenant retention? 

While lower interest rates offer an immediate financial advantage, they also provide an opportunity to think long-term. 

Bottom Line: Act Now While Interest Rates Are Lower 

The Federal Reserve’s rate cut offers a unique chance for business owners to jumpstart paused projects and make their locations more competitive. Whether you’ve been holding off on sustainability initiatives, centralizing operations, or simply making your locations more attractive to tenants, customers, or visitors, the market is telling you to move forward. Waiting too long could mean missing out on a rare window of opportunity where borrowing is cheaper, competition is less fierce, and the economic outlook is strong.   

SitelogIQ can help. We’re your partner for accelerated, centralized, and turnkey energy efficiency projects across your entire nationwide portfolio. We help CRE owners, auto dealers, and more rapidly deploy energy efficiency and sustainability solutions. 

Let’s chat about the projects you put on pause. We can help you rapidly prioritize and implement solutions while interest rates are favorable.

In May 2022, the Department of Energy issued a ruling requiring lighting products to meet new standards. This largely eliminates most fluorescent, incandescent, and halogen products as they are seen as toxic and inefficient and unable to meet these new standards.

Since the ruling, 14 states and the District of Columbia have approved or proposed even stricter standards on lighting products, effectively banning the sale of fluorescent lighting within state lines, specifically general service lamps (GSLs), compact fluorescent lamps (CFLs), and linear fluorescent tubes (T8, T5, T12).

For schools, office buildings, hospitals, warehouses, and all buildings that have used these bulbs to date, this will require a lighting retrofit to stay within compliance of these bans. Here’s a look at the current state restriction timelines for all GSLs, CFLs, and linear fluorescent lights:

The Reason Behind the Ban

Once the most common lighting sources in offices, schools, warehouses, industrial facilities, and most buildings, fluorescent lights contain mercury, a toxic heavy metal that is used to help emit light more efficiently. Mercury is considered by the World Health Organization (WHO) one of the top 10 chemicals of major public health concern. While the average CFL containing ~4 milligrams of mercury might seem low, the National Institutes of Health (NIH) has emphasized there is no known safe level of mercury exposure. When intact, fluorescent lamps impart no health risk to their surroundings; however, if the bulbs break or are improperly disposed, the mercury can be released. This can pose risks to human health and pollute our landfills and water systems, creating long-term consequences to the environment.

In addition to the toxins, GSLs, CFLs, and linear fluorescent lighting consume more energy and have a short lifespan, compared to modern lighting technology. For example, LED lights are more energy efficient and sustainable, helping improve efficiency and reduce carbon emissions.

Moving away from fluorescent lighting will help to protect the health and safety of both people and the planet.

The Solution: LED Lighting

LED lighting is quickly becoming the standard for many industries due to its ability to create safe and environmentally-friendly spaces. With the ban of GSLs, CFLs, and linear fluorescent lights, LED lighting is a great alternative for retrofitting your lighting and provides many benefits.

LEDs are long-lasting, efficient, and compatible with solar panels, helping lower the carbon footprint. Long-term LED use offers a positive return on investment because they require up to 80% less energy than traditional incandescent bulbs and 20-30% less than CFLs. By consuming less energy, LEDs also contribute to a reduction in carbon emissions and help lower energy costs up to 80%, saving you thousands of dollars annually.

They are also more durable and have long lifespans, lasting up to 50,000 hours, depending on their quality and usage, while CFLs typically last around 8,000 hours. Because of this, LEDs don’t degrade as quickly as other bulbs, meaning you won’t have to stop operations to repair the lighting system as often.

In addition, LEDs offer bright, high-quality light to increase visibility inside workspaces, hallways, stairways, and outdoor environments, making these areas safer and enhancing occupant comfort. LED lighting upgrades help organizations keep pace with sustainability best practices and future-proof their facilities.

Check out our blog post to learn more about the advantages of LED lighting.

Your LED Retrofit Partner

As more states implement fluorescent light bans, your facility may require an LED lighting retrofit to maintain industry standards and remain in compliance. LED lighting can also help to enhance building aesthetics, improve facility performance, or reduce energy consumption.

At SitelogIQ, our nationwide team has a deep background of sustainability experience partnering with firms to improve facility performance and quality standards. To date, we completed over 2,000 lighting retrofit projects for multifamily complexes, K-12 school districts, higher education institutions, commercial properties, hotels, hospitals, and more. Our process begins with an energy audit to pinpoint high-need opportunities and determine a tailored, energy-efficient lighting solution. In addition, our energy and facility experts can identify the proper financing solutions or recommend grant opportunities to help you address budget limitations. 

Contact us today to begin planning your LED lighting retrofit!

The EV market undoubtedly witnessed some shake-ups in the first half of 2024.

Tesla made headlines with its slowing of investments in EV infrastructure, laying off a portion of its Supercharger team, and, most recently, plummeting profit growth. This caused a massive stir about the future of EV charging infrastructure, especially for public charging stations.

But Tesla’s decisions didn’t leave the EV market in peril. In fact, EV sales in the second quarter of 2024 hit a new record high and an 11.3% increase year-over-year. Prediction data also remains optimistic that nearly half of all auto sales will be EVs by 2030.

As a commercial real estate owner, you might be wondering, “What does this have to do with my properties?” Surprisingly, the answer is: quite a lot. Tesla’s Supercharger pullback, coupled with the ripeness of the EV market, presents you with a unique opportunity to help fill the charging infrastructure gap and, in tandem, motivate more drivers to adopt EVs.

How CRE Owners Can Help Fill the Tesla Supercharger Gap

There’s a perfect storm happening in the EV market that commercial real estate owners can take advantage of:

EV sales continue to grow while the average cost of electric vehicles continues to drop.
The pool of used EVs continues to grow (also with average costs dropping), with prediction data forecasting 2024 growth by roughly 100%.
Government mandates continue to put pressure on CRE owners to show sustainability progress.
Rebates and grants are in abundance, helping to reduce the cost of charging installation.

Tesla’s Supercharger pullback only added to this storm, creating a surge of questions around demand for conveniently located charging stations, and the answer is simple – at your properties.

In a market where convenient charging is becoming increasingly important, offering on-site charging can give your CRE properties a significant edge over competitors.  This can be especially beneficial for properties like multifamily communities, shopping centers, hotels, and workplace buildings where attracting tenants, visitors, and shoppers who are more likely to pay more and spend more time is a top priority.

What Are the Benefits of Installing EV Chargers at My Properties?

Property owners have the unique opportunity to be a driving force to motivate more people to adopt EVs by adding chargers in their living communities, workplaces, or retail locations. For drivers who do not have access to convenient at-home charging at a single-family home, charging availability remains a major roadblock for EV adoption. Tesla Superchargers were an enabler to convince more drivers that EV was a viable option, and with the future of Superchargers a bit unclear, property owners can step in to be part of the solution.

By installing EV charging infrastructure, you can transform your properties into a magnet for tenants and customers, future-proofing your investment and reaping a host of benefits.

Regardless of your asset class, the benefits of installing EV chargers at your properties are clear:

Multifamily communities: Capture sustainability-minded renters, increase rental rates, and reduce parking strain.
Shopping centers: Become destinations for EV shoppers, extend dwell time, and increase spending.
Hotels: Cater to eco-conscious travelers, enhance guest experience, and create a new revenue stream.
Office and workplace buildings: Attract and retain eco-conscious tenants, boost employee satisfaction, and productivity.

In addition to the benefits for tenants and visitors of your properties, EV charging also boosts investor confidence. By installing charging infrastructure, you can demonstrate a forward-thinking approach, making your portfolio more attractive to long-term investors. Additionally, you’re likely already familiar with pressure to create environmentally conscious properties. Installing EV charging stations showcases your commitment to sustainability, which can be a major selling point for socially responsible investors.

I Was or Was Planning to Work with Tesla…Now What?

If you were planning to partner with Tesla for on-site Superchargers at your commercial real estate property, its slowdown doesn’t have to stall your plans entirely. The most important factor to remember is not to fall victim to a “do nothing” mentality if your Tesla strategy is changing course. Here are some alternative paths to consider:

1. Explore other charging providers

Numerous companies are actively expanding their charging networks. Research these providers and compare their offerings to find one that aligns with your property type, target audience, and budget.

2. Consider grant opportunities

Many government agencies and utilities offer grants or rebates to incentivize the installation of EV charging stations. Look into these programs to help offset the cost of installing your own infrastructure.

3. Work with a turnkey electric vehicle supply equipment partner

An EV charging partner like SitelogIQ will help you with all aspects of your EV deployment strategy, including site selection, budget and design, detailed engineering, procurement, and construction management.

SitelogIQ also takes a solution-agnostic approach, meaning we act as your agent in the marketplace. We’ll sit on your side of the table, navigating through the saturated market of EV charging software and hardware vendors, incentives, financiers, and legal. Let us help you find the best alternative to your Tesla plans, based on your portfolio’s unique needs and goals.

The EV charging demand is here to stay and multifamily property owners need to prepare to meet tenant needs.

In 2023 alone, there was a 60% year-over-year increase of EVs sold compared to 2022. And that doesn’t even account for the whopping 350,000 EVs sold in the U.S. in the first quarter of 2024. Couple these with the fact that EVs continue to become more affordable, and it’s safe to assume that more tenants will be demanding EV charging across your properties.

EV charging used to be a nice-to-have amenity across multifamily communities. But forward-thinking multifamily owners have shifted from whether they’ll install EV chargers to when and how – especially considering that some installation projects can take up to 2 years.

This often leads multifamily property owners to wonder, “How am I going to pay for this?”

While a direct cash purchase of EV charging installation, operations, and maintenance gives multifamily owners the most flexibility and control of the project, it also requires a significant out-of-pocket investment that might not be budgeted for or receive investor approval. An attractive alternative gaining steam includes different incentive and financing options aimed at reducing initial and ongoing EV charging costs.

Take Advantage of EV Charging Grants, Rebates, and Incentives

There are various incentives available to help significantly reduce the cost of purchasing and installing EV charging stations, making it a more financially viable option for multifamily owners.

Federal incentives have been created to help support the need for EV charging stations. The Alternative Fuel Infrastructure Tax Credit is available for commercial buildings through 2032 and can cover 30% of the cost per EV charger, up to $100,000 per charger. The U.S. Department of Housing and Urban Development (HUD) has set aside $1 billion in funding for “projects that improve energy or water efficiency, enhance indoor air quality or sustainability, implement the use of zero-emission electricity generation, low-emission building materials or processes, energy storage, or building electrification strategies, or address climate resilience, of an eligible property.” EV charging is included in this funding opportunity.

While federal incentive programs typically involve many qualifications to be met to receive funding dollars, multifamily property owners can also utilize state, local, and municipal grants and rebates to help offset costs. States such as California, New York, Massachusetts, Colorado, and Utah currently offer EV charging financing.

In addition, many utility companies have begun offering incentives and rebates for station installation. Some examples of companies with these programs include Southern California Edison (SCE), Pacific Gas and Electric (PG&E), Consolidated Edison (ConEd), Eversource, National Grid, SRP, Austin Energy, Los Angeles Department of Water and Power (LADWP), and Rocky Mountain Power (RMP). Utility companies may also offer financial assistance for the installation of electrical infrastructure like transformers or wires.

Qualifications for each incentive program differ heavily, however, we often see that higher installation projects better qualify for these EV charging funding opportunities. For example, projects looking to install 40 charging stations may be deemed more qualified and receive additional funding than those only installing 4 stations.

Navigating federal, state, local, and utility incentives is cumbersome and if not prioritized, can leave money on the table for multifamily property owners. Working with a turnkey electric vehicle supply equipment (EVSE) partner takes the heavy lifting from owners and helps ensure you take advantage of the best funding opportunities based on your location, portfolio, and property goals.

Explore EV Loan and Leasing Options

Commercial loans and equipment financing offer multifamily property owners another option to install EV charging stations. Banks offer commercial loans that can be utilized to fund EV charging projects and typically have a fixed interest rate and repayment terms. Local credit unions also often provide competitive loan options for community projects, including EV infrastructure, with potentially lower interest rates and flexible terms.

Equipment financing options, such as equipment leasing and manufacturer financing programs, allow property owners to partner with a specialized lender. These leasing options offer property owners competitive rates and flexible repayment terms to spread the cost of their project over time, through either monthly or annual payments.  

Consider a Third-Party Ownership Model

Multifamily owners also have the option to utilize a financing model where a third-party owner pays all EV charging installation, maintenance, and operational costs and collects the revenue from charging. This helps to alleviate upfront capital constraints for EV charging deployment and allows multifamily owners to benefit from new revenue-sharing models, enhance tenant satisfaction, and build a scalable strategy as demand grows. However, it’s important for multifamily owners to understand the pros and cons of a third-party ownership model to help decide if it’s the right fit for them.

Implement a Charging-as-a-Service (CaaS) Model

Similar to a third-party ownership model, a Charging-as-a-Service (CaaS) model puts the initial financial burden on an outside party. It focuses on a subscription or usage-based model to alleviate upfront costs from the multifamily property owner. In this case, the outside party doesn’t have to carry the financial risk, opening more possibilities for the type of project, the sites, the number of chargers, and so on. Again, this model also comes with its own set of pros and cons that should be considered by multifamily owners to ensure it’s the best EV charging funding solution.

Leverage an EVSE Partner for Long-Term Strategy

It’s understandable that some multifamily owners would rather avoid using another party’s capital for any property improvement. But when it comes to EV charging, it’s important to not fall victim to the “do nothing” mentality. Now is the time to start planning your EV charging project and identify the best funding mechanism to help meet your goals and tenant needs.

Working with a turnkey EVSE partner, like SitelogIQ, can help you plan for your current needs and the future. Our experts have helped deliver dozens of successful EV program rollouts, including one for a multifamily customer who was struggling with capital constraints. We reviewed their existing infrastructure and created a phased plan to immediately install 2 charging ports and install more down the road, helping to meet their short- and long-term goals.

We utilize a centralized approach for EV charging projects that enables us to deliver value to our customers by providing:

Single end-to-end accountability with an EV rebate, incentive, and warranty management to save time and money.
Optimized efficiency and savings due to our EV expertise to determine the best options to meet your property’s needs, such as implementation timing, install location, scale, and frequency of use.
Top-tier vendor relationships, buying power, cohesive project management, and consistent designs for a cost-effective rollout.
Unmatched speed and nationwide scale to execute portfolio-wide initiatives due to best practices, which avoid common pitfalls from an overly simplistic approach or lack of experience.
Access to our best-in-class program management tool, mySiteIQ, which provides on-demand data and visibility into projects.

Contact us today to learn more about our EV charging consulting services.

Coming out of the pandemic, retailers experienced massive upheaval. Consumer preferences and shopping patterns quickly shifted and are unlikely to revert back to pre-pandemic behaviors. Investor interest in retail properties remains strong, but expectations have changed. In order to thrive and remain competitive, shopping center owners must adapt to the rapidly changing market. Many shopping center owners are considering sustainability and ESG (environmental, social, and governance) initiatives as a key part of their strategy to meet changing conditions. In this article, we’ll explore the following topics to understand the retail market and how sustainability affects adaptation:

Retail market trends and implications
Why ESG is a part of an effective strategy to adapt to market trends
How to implement an effective ESG program

Retail market trends and implications

The shift to online shopping isn’t likely to go away. A McKinsey article¹ about how U.S. shopping behavior is changing says, “Consumer intent to shop online continues to increase, especially in essentials and home-entertainment categories. More interestingly, these habits seem like they’re going to stick as U.S. consumers report an intent to shop online even after the COVID-19 crisis.”

With the increase of buying online, shoppers are more inclined to pick up orders in stores. Retailers must be able to meet this demand by tailoring their environments to these shopper expectations. According to research from Colliers (reported by Globe St.)², “One-third of all digital retail sales will be fulfilled by stores… In 2020, just under 22% of digital sales were fulfilled by omnichannel methods. This continuity has compelled retailers to adapt their store operations to manage the influx.”

The shift to online shopping has made it critical for retailers to respond proactively to shopper expectations. The need to get ahead of the competition and better compete is pushing retailers to create desired shopping environments that will drive traffic to their brick-and-mortar stores.

Shopping center owners are focusing on providing an experience-driven environment to help attract shoppers.

According to Fortune³, “Experts also say that post-pandemic shoppers will be even more demanding: After being forced to stay close to home, they’re looking for better and convenient services and experiences.”

Industry leaders such as Simon Property Group have already prioritized the importance of meeting shopper preferences. “Simon is committed to providing convenient amenities [such as EV chargers] for our customers,” said Mona Benisi, Simon’s Vice President of Corporate Sustianability⁴.

Clean and safe environments are also increasingly important to shoppers. According to McKinsey research⁵, “US consumers have already started to change their behavior in response to hygiene concerns… 79 percent of consumers intend to continue or increase their usage of self-checkout in retail after COVID-19. Millennials and Gen Z are the widest adopters of contactless activities.”

Along with extra services such as EV charging stations, curbside pickup, and contactless payment, lighting quality, and healthier indoor air quality can help meet consumer preferences and attract shoppers. Brixmor Property Group continues to focus on transforming their shopping centers⁶ with enhancements including improved lighting, new pylon signage, parking lot upgrades, and more. In the company’s 2020 Corporate Responsibility Report⁷, Jim Taylor, CEO and President of Brixmor Property Group said, “We invest in our properties to make them more engaging and relevant to the communities we serve.”

Professional lighting design provides a comfortable, safe, attractive environment desired by shoppers and can also contribute to energy savings. Investing in shopping center environments can be a strategic advantage for shopping center and retail owners.

Investors are still interested in retail, but their expectations have changed.

The CBRE 2021 Real Estate Market Outlook for retail⁸ says, “private equity and venture capital funds are actively seeking to finance new retail ventures provided they offer justifiable risk-return rewards.”

Interest is still high in the market for retail ventures, making it essential for shopping center owners to meet changing investor expectations.

Well-executed ESG programs make good financial sense, so it’s not surprising that investors are looking at ESG initiatives when they evaluate retail opportunities. A ShoppingCenters.com (DMM) article⁹ says, “As consumers set the environmental and social agenda, the retail industry is responding in order to win their business. ESG criteria are increasingly used by investors and REITs to judge which companies to back.”

Corporate social responsibility is also an important factor that investors are focusing on. The McKinsey article¹ concludes that “As retailers contemplate the changes in consumer behavior, they will need to adjust their strategies and execution to adapt to the new norms, including… Managing corporate social-responsibility efforts to build brand strength authentically.”

The changing market provides opportunities for proactive retailers to adapt and thrive. The below table summarizes the implications of market trends:

Why ESG is a part of an effective strategy to adapt to market trends

One commonality that can be found from these market trends and implications is sustainability. Aside from showcasing sustainability efforts to meet investor demands, energy efficiency and sustainability initiatives aid shopping center owners in adapting to consumer preferences and better competing in the market. According to WWD¹⁰, “Environmental Social and Corporate Governance is dictating a new management approach for fashion, beauty and retail industries.”

To shoppers, sustainable environments are attractive environments. Sustainable solutions help shopping center owners meet the demand for clean and healthy environments that shoppers prefer amid market changes. Additionally, investing in sustainable solutions positions shopping center owners to better compete in the market and increase foot traffic by creating differentiated and desired experience-driven environments.

Realty groups are committing to ESG programs. A press release from Kite Realty Group¹¹ stated that the company has established a formal ESG task force and policy. Another press release from Phillips Edison & Company¹² shared corporate social responsibility accomplishments, including installing electric vehicle charging solutions, upgrading HVAC, and upgrading exterior lighting to achieve significant energy reduction.

Noted in IBM Research Insights¹³, “Nearly six in 10 consumers surveyed are willing to change their shopping habits to reduce environmental impact.” Top brands that include sustainability in their values will prefer retail spaces that support their ESG initiatives.

To withstand the pressure from shoppers, investors, and the competition, shopping center owners need ESG programs to be implemented and show results as quickly and efficiently as possible.

How to implement an effective ESG program

Simply making a statement about going green isn’t enough. ESG programs need to be properly implemented to deliver the results that stakeholders demand. Common obstacles to implementing an effective ESG program include using locally-focused initiatives instead of a national strategy, not having a defined structure of responsibility, and lack of bandwidth. Working with an experienced ESG partner is a proven, effective method to overcome these obstacles and see faster, better results from ESG programs. A professional ESG partner with shopping center expertise can implement a centralized program for best results to save time and money, and meet investor expectations.

Learn more about How a Centralized Approach to ESG is Setting the Standard for Shopping Center Owners.

Leading retailers have entrusted multiple retail/shopping center projects to the SitelogIQ team, and have experienced increased revenues and higher foot traffic. With over 14 years of experience developing national lighting programs, the SitelogIQ team is dedicated to helping shopping center owners accelerate sustainability programs that help increase revenue, attract tenants, meet shopper expectations, deploy capital efficiently and effectively, and meet rising investor demand for sustainability.

For more information about how an accelerated energy management and ESG plan can add value to your shopping center and retail properties call us at 855.581.6464 or email CI_Shoppingcenter@sitelogiq.com.

Sources

1 https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/the-great-consumer-shift-ten-charts-that-show-how-us-shopping-behavior-is-changing#

2 https://www.globest.com/2021/09/22/one-third-of-all-digital-retail-sales-will-be-fulfilled-by-stores/?slreturn=20210823125859

3 https://fortune.com/2021/05/27/shoppers-retailers-stores-online-spending-covid/

4 https://www.prnewswire.com/news-releases/simon-to-install-ultra-fast-electric-vehicle-chargers-at-more-than-30-shopping-centers-300652194.html

5 https://www.mckinsey.com/~/media/McKinsey/Business%20Functions/Marketing%20and%20Sales/Our%20Insights/The%20great%20consumer%20shift/ten-charts-show-how-us-shopping-behavior-is-changing.pdf

6 https://www.brixmor.com/re-development/current-projects

7 https://www.brixmor.com/-/media/brixmor/pdfs/corporate-responsibility-report-2020.pdf

8 https://www.cbre.us/research-and-reports/2021-US-Real-Estate-Market-Outlook-Retail

9 https://shoppingcenters.com/article/sustainability-esg-era-responsible-retail/

10 https://wwd.com/business-news/financial/esg-fashion-beauty-retail-management-finance-disclosures-1234582913/

11 https://www.globenewswire.com/en/news-release/2020/07/29/2069799/0/en/Kite-Realty-Group-Trust-Conducts-Inaugural-GRESB-Assessment-Enacts-ESG-Policy-and-Releases-2019-2020-ESG-Highlights.html

12 https://www.businesswire.com/news/home/20201207005112/en/Phillips-Edison-Company-Issues-Annual-Corporate-Social-Responsibility-Report

13 https://www.ibm.com/downloads/cas/EXK4XKX8