EVCP Installations – 6 considerations for retail landlords

It is increasingly common to see electric cars, or ‘EVs’ on the road these days.

I actually own one myself and thoroughly recommend it. One thing I have noticed though is that it is becoming harder and harder to find a charging point when out and about.

Indeed, with the announcement that the sale of petrol and diesel cars will not be sold in the UK from 2030, and the news that manufacturers such as Volvo and Jaguar intend to phase out petrol and diesel car production by then, this will only become more of an issue for more people as they make the switch to EV ownership.

That said, it is also becoming increasingly common for planners to require the installation of EV charging points (“EVCPs”) as part of new retail and leisure development, and also more and more prospective tenants are requesting that landlords provide EVCPs as part of their common facilities.

What then are the key points that a commercial landlord should consider when deciding to install EVCPs at their property?

1. Existing Lease Arrangements

Do the existing lease arrangements at the property allow for common parts to be varied or reduced to enable designated spaces to be exclusively let to an EVCP operator?

Are tenants entitled to a specific amount of car parking spaces which are to be freely available for their customers?

It is wise to check that leases to existing tenants do not contain any restrictions which would prevent the ability to grant an EVCP lease.

2. Service Charge

Landlords should consider what services the EVCP operator will actually require to use and benefit from.

In an open air car park at a retail park they will not make use of any structural part, so it is likely that the operator will wish an exclusion from costs relating to the retail parade.

This could be different in the case of a multi-storey car park at a shopping centre.

In either case, the operator need to make use of common access roads, and will likely expect the car park common areas to be kept free of litter and well maintained.

Care should be taken to ensure that the service charge obligation captures the appropriate and necessary services.

3. Redevelopment Rights

Is there a change that the landlord may wish to redevelop or reconfigure the property?

If so, it may be wish to consider “lift and shift” provisions to give flexibility to relocate the EVCP in that circumstance.

4. Grid Connection

It is more than likely that the operator will make their own grid connection arrangements, but expect them to consider whether they can achieve grid connection within the demise of the retail park or centre, or whether they will need to secure rights over third party land.

5. Equipment and upgrades

Just like EVs themselves, as the technology is still relatively new it is fast evolving and developing.

Expect the operator to require rights to easily update, renew and improve the equipment that they wish to install.

Landlords should also consider whether the operator should remove the equipment at expiry, or whether they wish it to remain in place either to be let to an alternative operator or perhaps even to be made use of by the landlord itself.

6. Rent arrangements

Rental arrangements vary, but it is not uncommon to see operators paying a combination of fixed rent and a variable rent based on electricity sold.

In some cases rent is based on profit share. Agreeing upon the type of rent payable is very much a commercial decision. Where a fixed rent is payable, generally we see that element being reviewed on an RPI basis.

Demand is powering up

As retail landlords look to rejuvenate their offerings and entice back customers as the country emerges from lockdown there will be even more demand for EVCP installations.

We are currently seeing an increasing trend in instructions where landlords wish to enter into leasing arrangements with bespoke EVCP operators for the development of EVCPs at retail parks and centres.

If you want to prevent your charging point arrangements giving you any shocking surprises, get in touch and we can help ensure that you’re connected to the grid smoothly.