Air Cargo Submarkets Command Rent Premium
e-commerce growth pressures shippers to shorten delivery times, industrial &
logistics submarkets near major cargo airports are commanding a 13% average rent
premium over the broader market.
The top three airport submarkets with the highest rent premiums are Chicago
O’Hare (47.1%), Oakland (32.0%) and Dallas/Ft. Worth (22.1%).
Third-party logistics operators were the most active occupiers in 2020,
accounting for 29.6% of total leasing in airport submarkets, followed by general
retailers and wholesalers at 24.4% and e-commerce companies at 16.0% Food &
beverage companies accounted for 12.5% of leasing in airport submarkets—4
percentage points higher than their share of overall U.S. industrial & logistics
more than $6 trillion, air cargo accounted for approximately 35% of the total
value of global trade in 2020, according to the International Air Transport
Association (IATA). Shippers and logistics operators use air cargo to quickly
import perishable or high-cost goods from distant locations, such as smartphones
from China, salmon from Scotland and roses from Ecuador.
COVID-related travel restrictions led to a 4.6% drop in air cargo volume in
March 2020. But after restrictions were eased in the second half of 2020, volume
increased as companies sought to quickly replenish their inventory stockpiles to
avoid shortages. Additionally, many cargo flights moved large quantities of
personal protective equipment throughout the COVID pandemic.
As the U.S. economy continues to recover from the pandemic-induced recession,
demand for—and rental rates commanded by—airport-adjacent facilities are set to
further take flight in 2021 and beyond.