Mixed-use Development opportunities around Airports

Posted On Tuesday, 30 April 2013 16:36 Published by eProp Commercial Property News
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Commercial activity in and around airports typically include aircraft maintenance, hotels, restaurants, car rental facilities, airport-related freight services and increasingly office developments. 

Cape Town InternationalThese activities take shape in what is termed Airport Cities or the Aerotropolis Concept.

The Aerotropolis concept argues that large city airports are becoming key urban hubs around which a variety of other functions and activities are developing. Airports are now seen as destination more than departure points and as such are gearing to provide retail opportunities, leisure and office destinations for knowledge workers. Typically bankers and IT companies are increasingly setting up offices closer to airports.

Airports provide a centre of all connectivity. Aerotropolis thrives in areas where multimodal transport exists. OR Tambo airport, with over 19million passengers in 2012, is well situated and embraces multi mode transport which include air, rail (Gautrain) and has highway access linking to Johannesburg, Pretoria and Boksburg.

The challenge posed in securing a business location in Airports is the rentals charged and in some cases, land tenure conditions. Typically vendors pay the airport for their space a minimum concession fee or a percentage of sales, whichever is higher. Regardless of lease structure and perceived high rentals in line with airport brand image, local and national retailers are interested in setting up restaurants and shops at Airports.

Airport city development is driving mixed use developments to new heights globally and in South Africa around Ekurhuleni, King Shaka and Cape Town International. Some of the development opportunities that exist include developing tourism and business centres, conference facilities, offices, exhibitions, events and retail.

 

Last modified on Thursday, 07 November 2013 15:26

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