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.
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.