The airport proximity premium: real estate as a strategic asset

Although passenger numbers have stabilised, aviation income is returning to pre-pandemic levels. However, structural pressures persist. These include volatile demand, rising operational costs and renewed airline resistance to tariff increases. In this environment, revenue from non-aeronautical assets can become the financial shock-absorber for airports. 

This signals a simple truth: airport real estate is no longer an optional supplementary revenue line. It's becoming critical for long-term resilience and sustainable growth.  

Revenue diversification is crucial. The COVID-19 pandemic highlighted how fragile aeronautical revenues can be. In contrast, property income, supported by long-term leases, has been more stable than revenue from retail or parking.  

This shows that real estate can be an equally reliable revenue stream for airports, at a time when airports are facing increasing capital needs for ageing infrastructure, sustainability upgrades, capacity demands and digital transformation.  

“Real estate is therefore a key resource for aviation programmes, as stable property income boosts creditworthiness, opens refinancing opportunities and supports major infrastructure investments.”  

A key part of this strategy is understanding how the ‘airport proximity premium’ can create value for airport developers and investors. Land and assets near airports command higher market premiums, thanks to the unique advantages airports offer at scale.  

By measuring this premium, developers can market land with confidence. They can close the gap between quoted and achieved rents. They can also build stronger business cases for land release or joint ventures.  

Predictable returns not only attract investors but also boost long-term resilience by reducing dependence on passenger-driven revenue streams. 

The airport proximity premium in practice    

In the UK, airport real estate demonstrates a clear and quantifiable proximity premium. In joint research we conducted with CBRE, we analysed eight major UK airports, including Heathrow, Manchester, East Midlands and Southampton.  

Our research demonstrates that logistics assets within a three‑mile radius command approximately 61% higher rents than comparable facilities further away. Achieved rents average £15 per sq ft, compared to £9 per sq ft outside of the airport catchment.  

“This reflects the operational value occupiers place on speed, resilience and multimodal freight access.”   

The premium extends beyond logistics, however. Airport hotels consistently outperform national benchmarks due to time‑sensitive traveller demand, irregular departure schedules and unexpected disruptions.  

UK airport hotels achieve 84-85% occupancy (against a UK‑wide average of 76-77%) and benefit from 18-22% valuation uplifts for assets within roughly one mile of major airports. This demonstrates that the airport proximity premium isn’t theoretical. It’s measurable in rents, occupancy, valuations and investor appetite. 

How can airport developers see the benefits of the airport proximity premium?

Airport real estate success doesn’t happen by chance. Airport developers who build a practical strategy are most likely to unlock the benefits of the airport proximity premium over the long term. 

To successfully capitalise on the opportunity premiums present, airports should follow these four key steps:  

1. Understanding the local market context 

Every airport operates in its own unique environment – influenced by local geography, politics and economics. By starting with a thorough market review, airport developers can assess local labour dynamics, competing commercial areas, infrastructure limits, planning rules and sector demand (industrial and logistics, hotels, offices, research and development, repair and maintenance, cargo).  

“This ensures their strategy aligns with real local needs and not just generic master planning assumptions.”  

Take Frankfurt Airport, a great example of how proximity premiums are influenced by metropolitan geography and how land is used. Located less than 10km from Frankfurt Hauptbahnhof, the city’s main rail station, and integrated with one of Europe’s densest commercial corridors, the airport sits within a high‑value real estate market that amplifies its development potential.  

Land located directly adjacent to the airport, situated around CargoCity  Süd, Kelsterbach and Neu‑Isenburg, shows reference values of €470-€560 per m², significantly above typical suburban levels of €250-€420 per m².

This represents a 35-135% premium for airport‑adjacent sites, driven not only by airport connectivity but also by the strength of the surrounding labour market, transport networks and regional business ecosystems.  

These findings confirm that airports must ground their real estate strategy in local and economic conditions. Premiums appear where airports are well‑connected to the broader city and its infrastructure, supported by strong demand sectors and limited competing space. Understanding these dynamics is the foundation of an investable, market‑aligned airport development strategy. 

2. Quantifying potential value through benchmarking 

Benchmarking is the critical bridge between market insight and investment confidence. To credibly demonstrate the airport proximity premium, airport developers must benchmark rents, land values, development costs and absorption rates across comparator airports and competing business hubs. 

This analysis can’t rely on generic assumptions. It requires an up‑to‑date understanding of market development trends, investor expectations, occupier requirements and the evolution of logistics, hospitality and commercial demand. 

Airports are in high competition with surrounding areas like logistics hubs and city submarkets – all of which are strengthening their own propositions.

“To set realistic rental targets and land release strategies, it's crucial to understand how these competing areas are priced, how quickly they’re developing and who they’re attracting.”  

A robust benchmarking exercise benefits significantly from partnering with an experienced commercial real estate advisor with deep market knowledge, real‑time transaction data and active engagement with tenants, developers and investors. This can open access to comparable deals, valuation inputs and live investor sentiment to strengthen the credibility of airport business cases.  

Ultimately, benchmarking transforms the airport’s land portfolio from a conceptual opportunity into an evidence‑based proposition capable of attracting high‑quality development partners. 

3. Preparing a ‘shovel-ready' development plan 

A shovel‑ready airport real estate plan shows investors that designated sites are ready for development from day one. This requires far more than a land‑use concept.  

It demands regulatory clarity, infrastructure preparedness, transparent delivery frameworks and robust commercial structures. This begins with ensuring that all land designated for non‑aeronautical use is fully cleared from a regulatory standpoint. 

“Equally important is infrastructure readiness.” 

Airports must identify and cost the infrastructure, including utilities, roads, grading and digital connectivity, required to unlock development.  

These provisions need to be in place, or there needs to be an established mechanism for funding them alongside construction. Clear budgeting, scheduling and scenario‑based financial projections help de‑risk delivery and reinforce investor confidence. 

Plans must also define a clear and adaptable business and delivery model that goes beyond a standard transaction framework. These models must clarify ownership and developer responsibility across projects, recognising that different assets may require different approaches.  

Using a flexible structure makes it easier to maintain a consistent commercial framework, provide market clarity and enable tailored partnership models. 

When airports combine these elements, they can significantly reduce investor uncertainty.  

4. Delivering with confidence  

Execution capability matters. Airports must demonstrate transparent governance, predictable development timelines, cost control and risk management, alongside alignment between commercial, aeronautical and regulatory divisions to successfully deliver their strategy at pace.  

Amsterdam Airport Schiphol offers an important lesson: that even Europe’s strongest airport real estate markets cannot rely on premiums lasting forever. Between 2015 and 2019, Schiphol commanded the Netherlands’ highest prime logistics rents, with premiums reaching up to 59% over inland markets.  

However, recent benchmarking data shows that the gap is closing quickly. 

By 2020, Schiphol’s rental premium had moderated to 17% over Amsterdam, 28% over Rotterdam and Utrecht, and 64% over inland regions. By 2025, prime Amsterdam rents had nearly converged with Schiphol’s levels, and Rotterdam continued to close the gap.  

“Despite Schiphol’s strong track record of logistics development and its role as a national gateway, the rise of competing city logistics hubs is eroding its historic advantage.”   

The message to airport developers is clear: monetising the airport proximity premium requires timely action. Those that delay may find surrounding markets capturing demand that once defaulted to airport-adjacent land. 

The next decade belongs to airports that take action  

The airport proximity premium is real, measurable and already being monetised across the world. The evidence from the UK, Netherlands and Germany demonstrates a consistent pattern: that European airport land outperforms, often by a wide margin. 

As metropolitan markets strengthen and demand patterns evolve, the window to maximise proximity-led value creation is narrowing.  

Airports that are decisive will attract high-quality investors and occupiers, while strengthening their financial resilience. By building diversified, stable income portfolios, those who take action now will become the leaders in the next era of airport real estate market development.