Framing The Airport City Aerotropolis Concept

1
Framing The Airport City/ Aerotropolis Concept
UNITAR workshop Leveraging Airports for Economic
Development
Airport-Driven Urban Development A Global
Overview
Airport-Driven Urban Development A Global
Overview

• Presented by
• John D. Kasarda, Director
• Kenan Institute of Private Enterprise
• Kenan-Flagler Business School
• University of North Carolina - Chapel Hill
• October 5, 2004
• Detroit, MI

April 11, 2005 Atlanta, Georgia, USA
2
Airports Driving The New Urban Form

• Airports today are much more than aviation
  infrastructures
• They have become multimodal, multifunctional
  enterprises generating considerable commercial
  development within and well beyond their
  boundaries
• All the functions of a modern metropolitan center
  are located on and immediately around major
  airport sites (Airport City)
• Arterial spines and clusters of aviation-linked
  businesses radiate outward up to 15 miles from
  airport (Aerotropolis)

3
The Airport City

• Airside
• Shopping mall concepts merged into passenger
  terminals
• Retail (including upscale boutiques)
• Restaurants (high-end as well as fast food)
• Leisure (fitness, recreation, cinemas, even
  churches)
• Logistics and Air Cargo
• Landside
• Hotels and entertainment
• Office retail complexes
• Convention exhibition centers
• Free trade zones
• Time-sensitive goods processing

4
Global Supply Chain Dell Computer
5
Airport Citys Triple Bottom Line

• Major airports now receive greater percentage of
  their revenues from non-aeronautical sources than
  from aeronautical sources
• Rapid commercial development at and around major
  airports is making them leading urban growth
  generators as airport areas become significant
  employment, shopping, trading and business
  destinations in their own right
• Airport area develops a brand image attracting
  even non-airport linked businesses

6
The Emergence of the Aerotropolis
Spines and clusters of airport-linked businesses
form along major airport arteries up to 20
kilometers from the airport

• Business parks
• Logistics parks
• Industrial parks
• Wholesale merchandise marts
• Information and communications technology
  complexes
• Hotel and entertainment centers
• Retail centers
• Large mixed-use residential developments

Just as you have Central Cities and the greater
Metropolis, you now have Airport Cities and the
greater Aerotropolis
7
Airport City Aerotropolis Schematic
Business Park
Office Corridor
Aerotrain
Industrial Park
Hotel and Entertainment District
Business Park
Aerolanes
Aerolanes
Ring Road
Retail/ Wholesale Merchandise Marts
Conference Center
Hotel
Bonded Warehouse District
Hotel
Residential
Residential
Terminal/Shopping Arcades
Terminal/ Shopping Arcades
Info-Communications Technology (ICT) Corridor
Business Offices
Business Offices
Aerolanes
Perishables
Aerolanes
Express Couriers
Research/ Technology Park
Logistics Park and Free Trade Zone
Distribution Center
Air Cargo
Flow-Thru and E-Fulfillment Facilities
Industrial Park
Aerotrain
8
Selected Airport Cities Aerotropoli in Evolution

• Amsterdam
• Dallas-Ft. Worth
• Ontario, California
• Detroit
• Hong Kong
• Subic Bay, Philippines
• Campinas, Brazil

9
Amsterdam, Netherlands

• Airport City Forms at Schiphol (Airport as
  Destination)
• From City Airport to Airport City
• Shopping Arcades
• Internet Cafes
• Theme Restaurants
• Office Buildings (Inside Fence)
• Ernst Young
• RR Donnelly
• Solomon Brothers International
• Unilever
• Heineken Export Group
• 2 First Class Hotels
• Cargo City
• 58,000 Workers Inside the Airport Fence Daily

10
WTC Schiphol Airport
11
Amsterdam-Schiphol Airport City Aerotropolis
Synergies
OUTSIDE FENCE Broader Aerotropolis
INSIDE FENCE Airport City
Value Added
Information Systems
Information Systems
IT
IT
Hotels
Shopping Arcades
Lodging
Retail Development
Restaurants, Clubs, Leisure
Entertainment
Offices, Hotels, Cargo
Real Estate
Shopping Centers
Retail Development
Taxi, Tram, Bus, Train
Business Parks
Multimodal
Offices and Business Services
Terminal
Freight Forwarding, 3PLs, Flow-thru
Logistics And Distribution
Terminal Infrastructure
Runways
Industrial Parks
Goods Processing
Basic Infrastructure
Additional Passengers Cargo
12
Amsterdam Comparative Office Rentals Eu/m2/yr
Source Jones Lang La Salle, 2000
13
Dallas-Ft. Worth Airport

• Driver of the Fast-Growing Metroplex
• Las Colinas (just east of DFW) Has 2,000
  Companies (Abbott Labs, ATT, Microsoft,
  Hewlett-Packard, etc.)
• Infomart (ICT Merchandise Mart)
• Market Center
• Worlds Largest Wholesale Merchandise Mart
• 7 Million Sq. Ft. of Display Space for Fashion
  Clothing and Home Furnishings
• In 2004, Attracted Buyers and Vendors from All 50
  States and 84 Countries
• Purchased 300,000 Airline Seats
• Filled 720,000 Hotel Rooms
• 7.5 Billion in Wholesale Transactions

14
Las Colinas (Adjacent to Dallas-Ft. Worth
Airport)
15
Las Colinas Facts at a Glance

• 12,000-acre airport-linked community
• 21.2 million square feet of office space
• 8.5 million square feet of light industrial space
• 1.3 million square feet of retail space
• 13,300 single and multi-family homes
• 3,700 luxury and business-class hotel rooms
• 75-plus restaurants

16
New Las Colinas Urban CenterBeing Developed

• Designed as Airport-Linked Business Cluster
• Mixed-use Entertainment District
• Mixed-Use Transit Mall
• Dedicated Light Rail to DFW Airport and Downtown
• 1 ½ Miles of Internal Dual Lane Track Connecting
  Las Colinas Commercial Nodes

17
Las Colinas
18
Ontario, California
19
The Pinnacle AeroparkDetroits New Image-Builder
20
Break-Through Planning and Design

• Aviation-themed environment
• Visually appealing architecture
• European-style traffic circles
• Integrates open space and active recreation
• First impression image-builder for greater
  Detroit area

21
Commercial Real Estate

• Over 19 million sq. ft. of high-quality office,
  technology, light-industrial and retail
  development
• 2.9 million square feet Class A office space
• 3.6 million square feet upscale retail
  commercial
• 4.7 million square feet logistics/transformation
• 8 million square feet flex tech

22
Future View of thePinnacle Aeropark
23
Hong Kong International Airport
24
Hong Kong SkyCity Master Plan
25
Subic Bay, Philippines
26
Subic Bay, Philippines

• FedEx Locates Asia Hub at Closed US Naval
  Airfield in 1994
• Cumulative Investment (Virtually All By Foreign
  Investors) Grows From 355 Million in 1993 to
  3.4 Billion in 2002
• Exports Increase from 25 Million in 1994 to
  1.31 Billion Annually in 2002
• Total Airport-Linked Employment Rises to 56,400
  in 2003, Exceeding the Peak Level of Employment
  when Subic was a U.S. Naval Base
• Airports Growth Boosts Surrounding Area, as
  Tourist Visitor Arrivals at Subic Reached Almost
  8 Million in 2002

27
Viracopos Airport (Campinas, Brazil)
28
Campinas, Brazil

• Viracopos Airport is a major air cargo hub 10
  percent of all Brazilian imports arrive through
  its terminal
• The second highest-growth high-tech area in all
  Latin and South America
• Investments in telecommunications, information
  technology and electronics have totaled 7
  billion in the past 10 years
• Fifty Fortune 500 companies have located
  facilities in the greater airport area, including
  IBM, Motorola, Lucent, Samsung, Alcatel and Texas
  Instruments
• Becoming South Americas Silicon Valley

29
Macro Conclusions

• Aviation and Airports are Pivotal to Business
  Competitiveness and Economic Development
• 40 Percent of the Value of World Trade Now Goes
  By Air
• Air Commerce is Creating New Aviation Linked
  Urban Forms (Airport Cities and the broader
  Aerotropolis)
• Airports Will Drive 21st-Century Business
  Location and Urban Development as Much as
• Highways in the 20th Century
• Railroads in the 19th Century
• Seaports in the 18th Century

30
Macro Conclusions, cond

• Investors and Developers Who Recognize this
  Megatrend can Select Strategic Sites At or Near
  Gateway Airports and Position Investment to be
  Leveraged by Growing Air Commerce
• Government Officials Can Plan Airport Cities and
  Aerotropoli to Meet Competitive Needs of
  Business, Boost Trade and Create Well-Paying Jobs
  while Generating Sustainable Economic Development

31
Thank you!
For follow-up questions, contact John_Kasarda_at_unc
.edu John D. Kasarda, Ph. D Kenan Institute of
Private Enterprise University of North Carolina
at Chapel Hill Chapel Hill, NC 27599-3440 USA