Airport real estate preparing for take off despite dip in cargo volumes.
The air cargo industry has experienced improvement in volumes, mainly driven by inventory restocking. This has yet to result in any push in absorption around airports, says the firm's Ports Airports and Global Infrastructure (PAGI) report.
"It's no secret that the decrease in global cargo volumes has negatively affected the demand for logistics and warehouse space around airports," said John Carver, head of the PAGI group at Jones Lang LaSalle. "These statistics have not helped vacancy rates at the top U.S. airports, which are up an aggregate of 80 basis points year-over-year, keeping 2010 net absorption in negative territory. That said, there has been some improvement this year and we expect that by late 2011, the market will be ready to take off again."
August 2010 saw a bounce in global cargo volumes on the back of re-stocking. However, the International Air Transportation Association (IATA) confirms that has fallen again, dampening the possible growth that could bring the market back to life this year," said Carver.
Some airport markets such as JKF in New York and Newark in New Jersey have remained buoyant due to their proximity to dense populations and low vacancy rates.
JFK has the lowest vacancy rates at 3.3% but it is the smallest market surveyed. Other dominant markets include Anchorage with 4.5%, LAX at 5.5% and Newark at 7.8%. JFK has the highest asking rents at $13.30 psf, Anchorage is $11.28 psf and LAX is $10.59 psf.
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|Comment:||Airport real estate preparing for take off despite dip in cargo volumes.|
|Publication:||Real Estate Weekly|
|Date:||Oct 20, 2010|
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