Commercial developments in airport precincts : lease and valuation issues : preliminary study

Eves, Chris, Baker, Douglas C., & Bryant, Lyndall (2013) Commercial developments in airport precincts : lease and valuation issues : preliminary study. In Rossini, Peter (Ed.) 19th Pacific Rim Real Estate Society Conference, Pacific Rim Real Estate Society, RMIT, Melbourne, Australia.

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Abstract

Over the past 30 years the nature of airport precincts has changed significantly from purely aviation services to a full range of retail, commercial, industrial and other non aviation uses. Most major airports in Australia are owned and operated by the private sector but are subject to long term head leases to the Federal Government, with subsequent sub leases in place to users of the land. The lease term available for both aviation and non aviation tenants is subject to the head lease term and in a number of Australian airport locations, these head leases are now two-thirds through their initial 50 year lease term and this is raising a number of issues from a valuation and ongoing development perspective. . For our airport precincts to continue to offer levels of infrastructure and services that are comparable or better than many commercial centres in the same location, policy makers need to understand the impact the uncertainty that exists when the current lease term is nearing expiration, especially in relation to the renewed lease term and rental payments. This paper reviews the changes in airport precinct ownership, management and development in Australia and highlights the valuation and rental assessment issues that are currently facing this property sector.

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ID Code: 56675
Item Type: Conference Paper
Refereed: No
Keywords: airports, airport development, commercial property, lease tenure valuation, leasehold rents, head lease rent calculation
Subjects: Australian and New Zealand Standard Research Classification > BUILT ENVIRONMENT AND DESIGN (120000) > OTHER BUILT ENVIRONMENT AND DESIGN (129900) > Built Environment and Design not elsewhere classified (129999)
Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > COMMERCIAL SERVICES (150400) > Real Estate and Valuation Services (150403)
Divisions: Current > Schools > School of Civil Engineering & Built Environment
Current > QUT Faculties and Divisions > Science & Engineering Faculty
Copyright Owner: Copyright 2013 the authors.
Deposited On: 30 Jan 2013 00:54
Last Modified: 20 Dec 2013 05:46

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