For most people, airports are locations where planes take off and land. Some of the larger ones might also offer retail and dining options.
Airport owners and operators are also increasing their interest in industrial aviation real estate in an effort to increase revenue beyond the usual passenger-driven methods. JLL’s report, “The Evolving Landscape of Aviation Industrial Real Estate: Opportunities for Airports and Developers,” explains five trends impacting airport-located industrial real estate.
#1—Growing Demand for Facilities
Thanks to supply chain globalization and the growing use of e-commerce, “modern air cargo hubs are evolving into sophisticated logistics centers,” the report said. As such, cargo operations are being integrated into direct-to-consumer logistics, complete with automation and cold chain capabilities.
The report indicated that airports focused on boosting their cargo infrastructure “are positioning themselves at the forefront of this lucrative market.”
#2—Increased Need for Maintenance, Repair and Overhaul (MRO)
The report explained that MRO facilities “are experiencing a resurgence as airlines seek to optimize aircraft uptime and reduce costs.” This, in turn, is prompting airports to offer “one-stop shop” MRO, along with facilities geared to handle wide-body aircraft maintenance.
“These investments not only generate new revenue streams but also enhance an airport’s appeal to airlines, potentially increasing passenger traffic as a secondary benefit,” according to the JLL analysts.
#3—Expanding Investment in Advanced Air Mobility (AAM)
AAM includes electric vertical take-off and landing vehicles (eVTOL), and developing infrastructure to support them “presents a unique opportunity for airports to position themselves at the forefront of urban air transportation,” the report’s authors pointed out.
The authors added that the early AAM technology adopters could also gain a competitive advantage “as this sector matures.”
#4—Growing On-Airport Aviation Manufacturing
The report indicated that airport-adjacent manufacturing facilities appeal to aerospace and defense companies.
“By developing suitable real estate for these operations, airports can attract high-value tenants with long-term lease potential and create synergies between manufacturing, testing and delivery operations,” the report added.
#4—Escalating Technology-Driven Efficiencies
The JLL analysts pointed out that airports that embrace technology tools like artificial intelligence, robotics and the Internet of Things (IoT) “can differentiate themselves and attract high-quality tenants seeking maximum operational efficiency.
The report said AI-supported sorting systems, cold chain logistics capabilities, automated maintenance tracking and real-time parts inventory management can help boost supply chain capabilities while potentially reducing aircraft downtime.
The post Airports Look to Real Estate for Additional Income Opportunities appeared first on Connect CRE.
