⚡ Plugging Into Profit: Should Landlords Partner With EV Charging Companies?
The economics, risks, and realities behind the growing EV infrastructure boom in Texas.
If you own commercial property in North Texas, chances are an EV charging company has already reached out — or will soon. Texas is now one of the fastest-growing EV markets in the U.S., and charging companies are racing to secure sites before the next decade’s demand surge.
But while the EV wave feels inevitable, the real question for landlords is simple:
Does an EV charger make financial sense for your property?
Here’s what the data — and the deal structures — actually tell us.
⚡ Texas EV Adoption: The Growth Curve Landlords Should Understand
Today, Texas ranks 3rd in the U.S. in total EV registrations, behind only California and Florida.
Current Snapshot (2024–2025):
Texas has over 230,000 registered EVs, up from ~80,000 just three years ago.
EV adoption in Texas has grown more than 200% since 2020.
Collin and Denton Counties are among the fastest-growing EV ownership zones in the entire state.
10-Year Outlook (2035):
Analysts from Bloomberg, NEF, McKinsey, and ERCOT forecast that:
20%–30% of new vehicle sales in Texas will be electric by 2035.
Total EV registrations in Texas could exceed 1 million within the decade.
The state will require 10–15 times the number of public chargers currently installed.
Translation for landlords:
Demand is coming — but unevenly, and not all properties will see meaningful usage early.
This is where the economics matter.
⚙️ The Three Revenue Models — and What They Mean for You
1️⃣ Flat Ground Lease
The charging provider pays you predictable rent (monthly or yearly).
Pros:
Guaranteed income
No dependence on charger usage
Most stable and least risky
Cons:
Rent may not reflect long-term EV growth (you might underprice future demand)
Typical NTX rents: $300–$1,000/month depending on traffic and power availability.
2️⃣ Revenue Share Model
You earn a percentage of charging revenue (often 5–15%).
Pros:
High upside if chargers are heavily used
Creates alignment with the operator
Cons:
Early-stage EV usage in suburbs may be slow
Payments can be low for several years
EV operators often prefer this because risk shifts to the landlord
Bottom Line:
This model rarely pays meaningful income early, unless you’re at a grocery anchor, hospital, or major commuter corridor.
3️⃣ Hybrid Model
A base payment + revenue share.
Pros:
Stability + upside
Ideal if your site is well-located but adoption is still maturing
Cons:
Harder to negotiate unless your site is truly premium
Best for: retail centers near major arterials, especially in Frisco, Plano, McKinney.
🧠 The Real Pros and Cons for Landlords
Let’s be direct. EV chargers are not free money — but they can create meaningful value at the right site.
✅ THE PROS — When EV Chargers Make Sense
1. Longer Tenant Dwell Times
Chargers increase how long people stay — great for:
Coffee shops
Grocery stores
Gyms
Retail clusters
2. Future-Proofing Your Center
As EV adoption grows, properties with chargers may:
Attract stronger tenants
Boost property value
Improve marketability
3. Passive Income
Especially with fixed ground leases, EV stations can act like:
“Mini” cell tower ground leases
Predictable long-term income
4. ESG Appeal
Some national tenants prefer sites with sustainability features.
❌ THE CONS — When EV Chargers Don’t Make Sense
1. Power Capacity & Upgrade Costs
Fast chargers require 480V 3-phase power.
If this power isn’t nearby, upgrades can cost $20K–$150K+.
Many landlords only discover this after signing an LOI.
2. Parking Loss & Tenant Conflict
Losing even 3–6 spaces can limit:
Restaurant leasing
Medical tenants
Academy/education tenants
High-parking-ratio users
In NTX suburbs, parking is revenue.
3. Long-Term Easements
Most EV companies require:
10–20 year access easement
Rights to enter anytime
Cable/wire easements
This can affect future redevelopment or tenant mix.
4. Technology Obsolescence
A charger installed today may be outdated in 6–10 years.
Without proper lease terms, landlords inherit:
Removal costs
Dead equipment
Potential eyesores
5. Low Utilization Risk
Not every EV deal will see traffic.
Low-visibility centers often have minimal charger use for years.
🧾 The Bottom Line: EV Charging Is About Fit — Not FOMO
EV adoption in Texas is real, accelerating, and unavoidable.
But adoption isn’t uniform — and not every property should jump in now.
EV Charging Makes Sense When:
✔ You have excess parking
✔ You sit on a major commuter corridor
✔ Your tenants benefit from long dwell times
✔ No electrical upgrades are required on your dime
✔ You secure a fair ground lease or hybrid deal
EV Charging Does NOT Make Sense When:
✘ Parking is tight
✘ Power is limited or expensive to upgrade
✘ Your tenant mix doesn’t benefit from charging
✘ The operator pushes only revenue share
✘ Long-term easements hinder future redevelopment
🔮 Final Thought: Smart Landlords Don’t Chase Trends — They Negotiate Them
The EV boom will reshape commercial real estate — but not all at once, and not everywhere.
Landlords who understand the economics, not just the hype, will make the best long-term decisions.
EV charging isn’t a guaranteed win — but in the right place, with the right terms, it’s a strategic one.