Airports need real estate to function; they need the space to park aircraft, manage security, passengers and gates. However, additional non-aviation real estate is quickly becoming a primary business function; delivering supplementary revenue streams for airports, adding value to operations, cargo, external businesses and passengers.
Airports possessing property such as industrial or offices and leasing to non-aviation businesses is a key revenue stream; MAG’s Airport City is a fantastic example of this. Airport City Manchester will deliver 5 million sq. ft of property including offices, hotels, logistics, manufacturing and ancillary retail spaces, all benefitting from 24-7 airport operations and an increasing volume of passengers.
Foundation Recruitment spoke with Lee Bennett, Estate Management Lead at MAG Property, to gain his thoughts: “Alongside the Airport City development, the real estate portfolio at MAG’s 3 UK airports – Manchester, Stansted and East Midlands – is a key support service to the airport’s core operations and it’s users. The transport links at MAG’s airports go beyond air travel, all 3 UK locations have excellent motorway and public transport links. The airports are gateways to both international and domestic locations, which is key for a range of occupiers from cargo handlers to international brands.”
Businesses which boast a cargo offering such as Menzies and Amazon are gaining significant benefits by having real estate onsite. The proximity allows processes to be streamlined, allowing businesses to react to demand faster and increase revenue.
Airline food suppliers can now be based onsite which considerably improves efficiency and lead time. Prior to this property being available, stock would often be based a few miles away, having to travel to an airport and upon arrival, go through the security procedures before transferring goods. Producing products onsite allows a much smoother manufacturing journey, alleviates pressures on security and reduces costs.
Driving footfall to real estate in the surrounding area – be it residential, offices, hotels, retail or industrial – will in-turn, increase passenger volume, attract more airlines, deliver increased flight routes and allow an airport to grow – improving asset value.
Growing passenger numbers are fantastic for the industry’s future development, however, heightened traffic delivers challenges and increases strains on operations. With passengers’ expectations of a smooth, efficient and enjoyable experience only growing, airports need to ensure that they have the capacity to manage the increased footfall without jeopardising the experience. Fortunately, advanced real estate is offering a wide range of solutions to manage this, including cost-effective, well-located accommodation solutions, a diverse range of flight destinations, a varied mix of tenants and reduced delays.
Airports are constantly looking for ways to maximise asset value, support growth and stay competitive. Real Estate has delivered a lucrative solution to drive revenue, deliver solutions to businesses and allow growth.