chris le tourneur - session 2: non-aeronautical revenue development
DESCRIPTION
AIRPORT CITIES DAY 2 STREAM B SESSION 1TRANSCRIPT
MXDdevelopment.com
Session B1 Commercial Development & Airport Real Estate
Chris LeTourneur - President & CEO, MXD
Connecting a world of opportunities TM
2014 AIRPORT CITIES WORLD CONFERENCE & EXHIBITION
Kuala Lumpur
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Thank You to Our Fantastic Hosts
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Thank You to Our Fantastic Hosts
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Leveraging the Real Estate Assets
Airport Cities
are the
for Regional
Non-Aero Revenue
Commercial &
Economic
Development
Competitive Accelerators
Gateways
Catalysts
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Leveraging Connectivity
LEVERAGING
AIRPORT GATEWAY for ECONOMIC
DIVERSIFICATION
REGIONAL ECONOMIC
NICHE
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Airport City Commercial
Development
Generates Non-Aero
Revenue & Grows Demand
for Air Travel
Drives Regional Economic Activity &
Airport Competitiveness
Drives Airline Interest for
Route Development
Driving Air Service - Route Demand
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MXD’s Role
Creating Airport Cities
AIRPORTS COMMERCIAL
DEVELOPMENT
CONNECTING
ECONOMIC & REVENUE
DEVELOPMENT
Airport City Master Planning
Case Study Profiling/Benchmarking
Market Analysis & Positioning
Financial Feasibility & Structuring
Economic Cluster Analysis
Commercial Development
Landside Development Strategy
Implementation & Governance
Marketing, Branding & Identity
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Edmonton International Airport
Muscat International Airport
Memphis Aerotropolis
Belo Horizonte, Brazil Vancouver International Airport
Halifax Stanfield Intl Airport Winnipeg International Airport
Denver International
Aerotropoli & Connected Cities by MXD
Hong Kong SkyCity
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Airports’ Role in Commercial Development
© Property of MXD Development Strategists
Landside Commercial Planning & Ground Leasing
Terminal Development & Concessions Revenue
Airport Master Planning Identifying Landside Commercial Areas
Airport as Developer or Joint Venture Partner
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Airport Management & Development Models
UNITED STATES
Governed at City/County Level
Subject to local politics (-)
FAA impacts/implications (+/-)
Bonding/financing capabilities (+)
Tax Payer sensitivity (-)
CANADA / AUSTRALIA
Quasi Private-Public
Leased Federally Owned Property
Autonomy from local politics (+)
Flexibility for Innovative Devlpt (+)
Must Generate Non-Aero Revenues
MIDDLE EAST
Sovereign ownership/operation
Transcend reality - innovative
Profitability is not only driver
Autonomous decision making (+)
Speed to market is fast (+)
AFRICA / ASIA / EUROPE
Privatized / Airport Companies
Profitability is bottom line
Vested in Commercial Development
High Speed Rail Links (+)
Embrace Mixed-Use TOD (+)
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Market & Revenue
Assessment
Airport City Case Studies
Site Analysis
Economic Cluster
Analysis
Optimal Development
Program
Engineering Concept Analysis
Concept Layout
Planning
Financial Analysis
Commercial Development
Plan
Branding & Identity
Target Tenants Marketing Materials
Stage One - Development Strategy
Stage Two - Development Plan
Stage Three - Marketing Strategy
Political/ Initiatives
Stakeholders
Implementation Plan
Airports Thinking Like Developers
© Property of MXD Development Strategists
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Airport Cities & Economic Clusters
Gateway to Accelerate Regional Economic Development
© Property of MXD Development Strategists
Create More and
Better Jobs
Attract Inward
Investment
Diversify the Economy
Enhance Tourism
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Leveraging Economic Clusters
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Up & Down Stream Economic Clusters
Economic Clusters
Aviation
Logistics/ Distribution
Education
Bio-Life Sciences
Perishables
IT/CT
Tech
R & D
Engine
Testing
Avionics
Advanced
Manufacturing
Composite
Materials
Parts
Assembly
Chemicals
Resins
Cloud
Computing
R & D
Service/
Assembly
Foods &
Flowers Nutra &
Pharma
Temp
Control
Chain
Health
R&D
Devices
Incubators
Supply
Chain
Cold/Dry
Storage
Skills
Jobs Niches
Technology
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DENVER INTERNATIONAL AIRPORT CITY, CO, USA Belo Horizonte Aerotropolis, Brazil
Logistics & Distribution Business Park
Agribusiness & Food Processing Lagoa Santa
Town Center
University Campus
R & D Discovery Park
Retail Outlet Center
Fashion City & Exhibition Center
Heavy Equipment Auction
SIX Semiconductor Town Center
Aerotech Park
Health Sciences Center
Temperature-Controlled Cold Chain Facilities
Administrative Service Center
Luzia Cultural & Archaeological Center
MG424/LMG800: Aerotropolis City Center: Lagoa Santa:
Six Semiconductor:
Using “Pilot Projects” as Catalysts, Enablers & Accelerators
Triggering “Upstream & Downstream” Economic Activities
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DENVER INTERNATIONAL AIRPORT CITY, CO, USA Belo Horizonte Aerotropolis, Brazil
Economic Impacts for 20-Year Build-Out:
NEW JOBS
660,000
PUBLIC
INFRASTRUSTURE
INVESTMENTS
$10 Billion PRIVATE
DEVELOPMENT
INVESTMENTS
$100+ Billion
NEW POPULATION FROM
NEW DIRECT JOBS
1 Million
ANNUAL BUSINESS
OUTPUT
$82 Billion
NEW DEVELOPMENT
FLOORSPACE
190 Million sf
ANNUAL TAX
REVENUES
$10 Billion
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Memphis Aerotropolis
COMMUNICATING WITH
COMMUNITIES AGENCIES BUSINESSES
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Telecom & GeoSpatial
Tech
Life Sciences &
CRO’s
R & D Aerotropolis Institute
Targeted Economic Clusters & Tenants
Targeted Economic Clusters & Tenants
Airport West - 1 (AW-1)
• Memphis Aerotropolis Institute
• Single-Tenant Flex
• Research Commercialization
• Corporate Hotels & Conference
• Discovery Business Park Incubator
• Contractual Research Org’s (CRO’s)
Land Use GFA (SF) Avg. FAR Land Req's
(Acres)
Industrial 337,500 0.23 33.8
Office 382,500 0.27 33.0
Retail 80,000 0.25 7.4
Lodging 122,500 0.52 5.4
Residential - - -
Institutional 229,500 0.90 5.9
Totals 1,152,000 0.31 85.5
Land Use Program (Net Additional)
Memphis Aerotropolis
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Memphis Aerotropolis
Airport West - 1 (AW-1)
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Memphis Aerotropolis
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Memphis Aerotropolis
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Ekurhuleni Aerotropolis
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Ekurhuleni Aerotropolis
Economic Connectivity
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Ekurhuleni Aerotropolis
Stakeholder Outreach
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Ekurhuleni Aerotropolis
Economic Development Districts
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Level 2 AIRPORT INSTALLS INFRASTRUCTURE &
LEASES SERVICED LAND
Level 4 AIRPORT INSTALLS INFRASTRUCTURE &
PARTICIPATES IN CASH AND/OR BUILDING CONSTRUCTION IN JOINT VENTURE
Level 3 AIRPORT INSTALLS INFRASTRUCTURE &
PARTICIPATES IN JOINT VENTURE BASED ON RESIDUAL LAND VALUE
Level 1 AIRPORT GROUND LEASES
RAW LAND ONLY
Level 5 AIRPORT INSTALLS INFRASTRUCTURE, CONSTRUCTS BUILDINGS, MARKETS &
PROPERTY MANAGES DEVELOPMENT PROJECT
Different Land Use
Development Projects require
Different Approaches
Airport must consider its Core Abilities versus
Partners who are Experts in
Marketing, Development & Management of specific project
types
Levels of Airport Development Risk to Reward
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The level of Airport participation in Airport City real estate development
relates to in-house abilities and upside revenue potential.
Hierarchy of Risk in Airport Participation
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Marketing, Implementation & Governance
Development
Services Division
Non-Aeronautical
Revenue Management
Property Management
Ground Leasing, Joint-
Venture Partnerships,
Construction &
Development Agreements
Groundside
Infrastructure/Services
Development
DEVELOPMENT & REVENUE PLANNING & MARKETING
Land Use Planning &
Design
Criteria/Guidelines
Real Estate Marketing
Development Review
(Expedited Process at
the Airport)
Municipal
Authority
Inter-Jurisdictional
Improvement District
& Participation
Liaise
Inter-Jurisdictional
Liaison
Liaise Liaise
Liaise
Airports
becoming
Active in
Development
Process
Development Partnerships
Infrastructure Agreements
Marketing & Property Management
Design Guidelines
Inter-Jurisdiction Agreements
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Airport City Development Approaches
Who What How
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Airport City Development Approaches
Who What Where
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Airport City Development Approaches
What How Where
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Thank You!
MXDdevelopment.com Chris LeTourneur, President & CEO
[email protected] +1-604-644-4139
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Our Outstanding Speakers
Kahir Mirza - Malaysia Airports Senior General Manager
Yuta Inoue – MFMA Development Sdn Bhd General Manager
Mari Peltomaki - Airport Area Marketing Ltd. Project Manager
Hubert Fontanel - Aeroports de Paris Deputy Director
Session B1: Commercial Development & Airport Real Estate