Not surprisingly, lease rates at warehouses near major airports are often quite a bit higher than at surrounding facilities, but that premium varies quite a bit by market.

Supply Chain Digest Says... CBRE says that demand for warehouse space near airports is expected to increase as companies diversify their supply sourcing to safeguard inventories and meet consumer needs. What do you say? Click here to send us your comments Click here to see reader feedback

That according to new research from real estate firm CBRE.

CBRE analysis found that average rents for warehouses within a five-mile radius of major airports are 18.8% higher than the average for their metropolitan areas. The analysis looked at the markets around the 20 busiest US airports for air freight.

Naturally enough, warehouses near airports are almost always to support air freight shipments or imports, usually used for high value or very time sensitive cargo.

Each market is unique, but some, such as the areas around John F. Kennedy International Airport in New York, Los Angeles International Airport and Miami International Airport have little space for warehouse development.

The chart below illustrates some of the highest and lowest lease premiums for space near 10 of the 20 airports in CBRE analysis. That ranged from a 36.8% premium near LAX to just 4.3% near Cincinnati’s airport.

Third-party logistics (3PL) companies accounted for the most (42.7%) leasing near airports through August, CBRE says, followed by general retail and wholesale (32.2%).

By contrast, companies that focus only on ecommerce comprised less than 4% of airport leasing. Companies outsource to 3PLs to sidestep challenges such as high rents and labor shortages. This is especially true near transportation hubs.

So it is not surprising that 3PL’s share of airport market leasing exceeds their share of the overall industrial market (35.6%).

Warehouse Lease Premiums Select Airport Areas

Source: CBRE

CBRE says that demand for warehouse space near airports is expected to increase as companies diversify their supply sourcing to safeguard inventories and meet consumer needs.

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The firm expects rent growth in airport markets to outpace the industrial market average for the foreseeable future.

What types of goods are brought into the US through air freight?

As seen in the chart here from CBRE’s report, “electric machinery” topped the list, at $122 billion in 2021, followed by machinery parts ($95 billion) and interestingly jewels and precious stones at $71 billion.

“The immediacy of ecommerce deliveries and the generally faster pace of business than in past decades, among other factors, have made airport warehouses a critical link in many supply chains,” said John Morris, CBRE Americas President of Industrial & Logistics.

But the space will cost you.

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