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Top Airport Locations for Real Estate Investors

Q2 2015
With congestion issues and seaport gridlocks plaguing the transportation industry, air freight volumes are back on the rise. According to JLL’s annual Airport Outlook Report, global air cargo saw a 4.5 percent annual increase in 2014 and the forecast calls for 5 percent growth in 2015. This has created a flurry of leasing, building and investment in the distribution center real estate surrounding key U.S. airports. And as a result, rents are rising for tenants, while returns rise for savvy investors.

JLL’s Index evaluates airports based on criteria such as availability of industrial and warehousing space, access to large population centers, and air cargo growth prospects. Leading airports face rising rents and low vacancy rates due to high demand from tenants whose cargo dictates close proximity to the hangars and runways. This translates to great interest from institutional investors, and high costs for the tenants seeking what little space remains on the market.

The top three airports all benefit from baseline location advantages, combined with ongoing infrastructure investment. Chicago’s O’Hare Airport (ORD) took the top spot according to the report, followed by Miami (MIA) and Los Angeles (LAX).
SlideshowTop Airport Locations for Real Estate Investors Top Performing Airports in 2015
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  • JLL’s Index evaluates airports based on criteria such as availability of industrial and warehousing space, access to large population centers, and air cargo growth prospects. This year’s highest ranked airport is Chicago O’Hare (ORD) with a score of 144.6, followed by Miami (MIA) at 120.9 and Los Angeles (LAX) with a 117.2 JLL’s Index evaluates airports based on criteria such as availability of industrial and warehousing space, access to large population centers, and air cargo growth prospects. This year’s highest ranked airport is Chicago O’Hare (ORD) with a score of 144.6, followed by Miami (MIA) at 120.9 and Los Angeles (LAX) with a 117.2.
  • Ted Stevens International Airport (ANC) – Flat- to no-growth is the near- and long-term consensus for ANC's airport-near industrial facilities. Ted Stevens International Airport (ANC) – Flat- to no-growth is the near- and long-term consensus for ANC's airport-near industrial facilities.
  • Ted Stevens International Airport (ANC) – Flat- to no-growth is the near- and long-term consensus for ANC's airport-near industrial facilities. Ted Stevens International Airport (ANC) – Flat- to no-growth is the near- and long-term consensus for ANC's airport-near industrial facilities.
  • Hartsfield-Jackson Atlanta International Airport (ATL) – Greater market demand skyrocketed in 2014 with limited new supply. Another 6.3 million square feet is now under construction. Hartsfield-Jackson Atlanta International Airport (ATL) – Greater market demand skyrocketed in 2014 with limited new supply. Another 6.3 million square feet is now under construction.
  • Hartsfield-Jackson Atlanta International Airport (ATL) – Greater market demand skyrocketed in 2014 with limited new supply. Another 6.3 million square feet is now under construction. Hartsfield-Jackson Atlanta International Airport (ATL) – Greater market demand skyrocketed in 2014 with limited new supply. Another 6.3 million square feet is now under construction.
  • Dallas-Fort Worth International Airport (DFW) – DFW is expected to see healthy leasing activity over the next few quarters as some new spec construction was recently delivered on the airport's grounds. Dallas-Fort Worth International Airport (DFW) – DFW is expected to see healthy leasing activity over the next few quarters as some new spec construction was recently delivered on the airport's grounds.
  • Dallas-Fort Worth International Airport (DFW) – DFW is expected to see healthy leasing activity over the next few quarters as some new spec construction was recently delivered on the airport's grounds. Dallas-Fort Worth International Airport (DFW) – DFW is expected to see healthy leasing activity over the next few quarters as some new spec construction was recently delivered on the airport's grounds.
  • Newark Liberty International Airport (EWR) – EWR's airport-near rents will remain high due to the buildings' proximity to the airport, Port Newark/Elizabeth and New York City. Newark Liberty International Airport (EWR) – EWR's airport-near rents will remain high due to the buildings' proximity to the airport, Port Newark/Elizabeth and New York City.
  • Newark Liberty International Airport (EWR) – EWR's airport-near rents will remain high due to the buildings' proximity to the airport, Port Newark/Elizabeth and New York City. Newark Liberty International Airport (EWR) – EWR's airport-near rents will remain high due to the buildings' proximity to the airport, Port Newark/Elizabeth and New York City.
  • Indianapolis International Airport (IND) – Seventy-five percent of all U.S. businesses are within a one day's drive-time of IND. Indianapolis International Airport (IND) – Seventy-five percent of all U.S. businesses are within a one day's drive-time of IND.
  • Indianapolis International Airport (IND) – Seventy-five percent of all U.S. businesses are within a one day's drive-time of IND. Indianapolis International Airport (IND) – Seventy-five percent of all U.S. businesses are within a one day's drive-time of IND.
  • John F. Kennedy International Airport (JFK)	– Several on- and off-tarmac buildings will be upgraded and rehabilitated, on account of tenant lease expirations. John F. Kennedy International Airport (JFK) – Several on- and off-tarmac buildings will be upgraded and rehabilitated, on account of tenant lease expirations.
  • John F. Kennedy International Airport (JFK)	– Several on- and off-tarmac buildings will be upgraded and rehabilitated, on account of tenant lease expirations. John F. Kennedy International Airport (JFK) – Several on- and off-tarmac buildings will be upgraded and rehabilitated, on account of tenant lease expirations.
  • Los Angeles International Airport (LAX) – Rents are expected to continue to rise in the next 12 months due to high demand and a supply scarcity of quality space. Los Angeles International Airport (LAX) – Rents are expected to continue to rise in the next 12 months due to high demand and a supply scarcity of quality space.
  • Los Angeles International Airport (LAX) – Rents are expected to continue to rise in the next 12 months due to high demand and a supply scarcity of quality space. Los Angeles International Airport (LAX) – Rents are expected to continue to rise in the next 12 months due to high demand and a supply scarcity of quality space.
  • Memphis International Airport (MEM) – Memphis is and will continue to be a major throughput hub. Memphis International Airport (MEM) – Memphis is and will continue to be a major throughput hub.
  • Memphis International Airport (MEM) – Memphis is and will continue to be a major throughput hub. Memphis International Airport (MEM) – Memphis is and will continue to be a major throughput hub.
  • Miami International Airport (MIA) – New construction at Airport West will present space options for airport-reliant occupiers. Miami International Airport (MIA) – New construction at Airport West will present space options for airport-reliant occupiers.
  • Miami International Airport (MIA) – New construction at Airport West will present space options for airport-reliant occupiers. Miami International Airport (MIA) – New construction at Airport West will present space options for airport-reliant occupiers.
  • Oakland International Airport (OAK)	– Oakland's cargo volumes will remain steady into 2015, while the greater industrial market is expected to achieve historically tight market conditions. Oakland International Airport (OAK) – Oakland's cargo volumes will remain steady into 2015, while the greater industrial market is expected to achieve historically tight market conditions.
  • Oakland International Airport (OAK)	– Oakland's cargo volumes will remain steady into 2015, while the greater industrial market is expected to achieve historically tight market conditions. Oakland International Airport (OAK) – Oakland's cargo volumes will remain steady into 2015, while the greater industrial market is expected to achieve historically tight market conditions.
  • O’Hare International Airport (ORD) –Land pricing for tear-down/in-fill candidates is north of $10 per square foot and developers are forced to maximize the building footprint at the expense of trailer staging and auto parking. O’Hare International Airport (ORD) –Land pricing for tear-down/in-fill candidates is north of $10 per square foot and developers are forced to maximize the building footprint at the expense of trailer staging and auto parking.
  • O’Hare International Airport (ORD) –Land pricing for tear-down/in-fill candidates is north of $10 per square foot and developers are forced to maximize the building footprint at the expense of trailer staging and auto parking. O’Hare International Airport (ORD) –Land pricing for tear-down/in-fill candidates is north of $10 per square foot and developers are forced to maximize the building footprint at the expense of trailer staging and auto parking.
  • Louisville International Airport (SDF) – Workforce availability may be a challenge for the greater market; companies, including UPS, have cited difficulties in finding qualified seasonal employees in years past. Louisville International Airport (SDF) – Workforce availability may be a challenge for the greater market; companies, including UPS, have cited difficulties in finding qualified seasonal employees in years past.
  • Louisville International Airport (SDF) – Workforce availability may be a challenge for the greater market; companies, including UPS, have cited difficulties in finding qualified seasonal employees in years past. Louisville International Airport (SDF) – Workforce availability may be a challenge for the greater market; companies, including UPS, have cited difficulties in finding qualified seasonal employees in years past.
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