Airports are shaping business location and urban development in the 21st century as much as highways did in the 20th century, railroads in the 19th century, and seaports in the 18th century, according to new property research.
Analysis of New Zealand’s major airports and their land use has found that airport owners are morphing into “entrepreneurial landlords” - through a raft of real estate related business ventures unconnected to processing passengers and cargo handling.
The study by Bayleys Research has highlighted that spreading into real estate development and leasing is bolstering the core aviation business activities and revenues.
Commenting on the new research, Bayleys’ national director commercial and industrial, Ryan Johnson, said: “Airport-owned/controlled property buffering the country’s biggest airports is being transformed by a range of commercial, industrial, retail and hospitality developments, including master-planned precincts of significance to wider regional property markets and economies.
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“Heading the pack as New Zealand’s largest and busiest airport, Auckland International Airport continues to evolve as it rolls out its multi-billion dollar, 30-year programme to create ‘the airport of the future’.”
On the airport fringe, master-planned The Landing Business Park is being developed. With 150 hectares earmarked for development in six stages, The Landing is already 40 percent built-out and is home to the likes of Hellmann World Wide Logistics, DHL, Fonterra, Coca Cola Amatil, Fuji Xerox and Bunnings.
Leasing vacancy levels in the airport corridor are at historic lows according to Bayleys Research, sitting at around 0.9 percent - down from 1.5 percent last year. This despite a hefty increase in available space thanks to new development coming on stream.
Auckland Airport earns concession revenue from a range of retail businesses in both the domestic and international terminals, including foreign exchange, duty free and specialty stores, food and beverage, luxury stores and advertising, as well as some off-airport retailers. Total retail income for the 2018 financial year was $190.6 million, up by more than 17 percent on the previous financial year.
