Development Magazine Summer 2014

By the Numbers: Airport Real Estate Outlook

World trade is growing more rapidly than demand for air cargo. Yet time-sensitive goods such as food, high-end pharmaceuticals and other perishables will continue to propel the air cargo industry. Global sales projections for biologics (medicinal products such as vaccines, blood components and living cells used to treat diseases) and e-commerce also favor the industry’s long-term outlook.

A recent JLL report reveals that real estate near airports “is commanding high rent premiums in mature logistics corridors.” Major air cargo hubs in the U.S. “remain potent generators of real estate demand; short-term growth prospects may be muted, but in the long run they are critical assets that should not be ignored by investors, especially as consumer buying patterns change.” Which airport markets offer the best investment and development opportunities over the next decade? The table and graph below provide some guidance.

graph showing port, airport and global infrastructure index

A subjective measure of an airport’s value for real estate owners, investors and occupiers; air cargo scores capture airports’ health, growth, functionality and connectivity while real estate scores capture industrial real estate markets surrounding airports.

table showing top airport and property market indicators

 

From the Archives: Business / Trends Articles from the Previous Issue

Two businessmen looking at laptop

10 Tips for Growing a Private, Non-Family-Owned Business 

What does it take to nurture and grow a private, non-family commercial real estate development company? Brian Coulter, managing partner at The JBG Companies, a prominent investor, owner, developer and manager of real estate properties in the Washington, D.C, metropolitan area, described how his firm handles these challenges, at NAIOP’s Development '13 conference.

K Street, Washington, D.C.

Back to the City: Déjà Vu All Over Again 

Through the rearview mirror of 2013, the demographic preferences that are shaping real estate’s future are coming into clear view: The emerging millennial generation is creating a strong “back to the city” movement, with the baby boomer generation as its partner.