LOS ANGELES—While the growth opportunities are not overwhelming, there are some airport markets that are doing well, says Jones Lang LaSalle's 2013 Airport Index.
“Fuel costs are high and total air cargo growth is stagnant but there are regions that offer strong investment opportunity,” explains John Carver, head of Jones Lang LaSalle's Ports Airports and Global Infrastructure (PAGI) group.“Airport real estate investors should consider airports that benefit from growing trade with regions such as Asia and Latin America; airports that transport perishable goods (i.e., flowers, fruit); and those with close proximity to dense population centers that are high priority e-commerce delivery destinations.”
The report, which measures the nation's top 12 airports against qualitative and quantitative criteria including cargo volumes, infrastructure plans and real estate conditions found that:
Recommended For You
- Two primary types of airport real estate markets dominate: airports dominated by FedEx and UPS hubs like Memphis and Louisville where 'big box' warehouse and distribution space dot the landscape, versus international passenger gateways like Miami and Chicago where proximity to dense populations drives efficiency and price. Only Dallas/Fort Worth falls into both categories.
- Perishable goods represent a commodity with growth potential: goods such as fruits, vegetables and flowers require the speed-to-market offered only by air cargo when shipping globally.
- E-commerce distribution growth is driving opportunity near major cargo hubs: a nexus of parcel shipping companies and an ability to reach customers throughout the country in one or two days provides a competitive advantage for airport real estate, although investors should note, however, that on-airport property, though desirable, may involve complex public sector contracts.
Powerhouse Regions: Top U.S. Cities for Airports (see Fig. 1)
The *top markets in 2013 are ranked as follows:
- Miami (MIA)
- Chicago O'Hare (ORD)
- Memphis (MEM)
- Los Angeles (LAX)
- Newark (EWR)
- New York (JFK)
- Indianapolis (IND)
- Atlanta (ATL)
- Dallas Fort-Worth (DFW)
- Louisville (SDF)
- Anchorage (ANC)
- Oakland (OAK)
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.