Retail
To facilitate commercial development adjacent to airport terminal buildings, airports have the ability to create land use and zoning legislation. Local governments have followed suit by adjusting zoning designations for airport proximate lands to complement the retail and commercial destinations evolving on airport lands. In terms of the target market audiences for destination retail development on and around airport lands, there are two distinct groups; the first involves ‘airport-related’ customers directly associated with the airport community, including passengers, tourists, airport hotel/conference guests and airport employees. The second is oriented around the
regional population base, who pass airports on the highways and major road infrastructure at and around airports. Destination retail development benefits from vehicle traffic, and access from this
Grapevine Mills to further establish it as a regional destination for shopping, dining and entertainment. Opened in 1997 and managed by
Simon Property Group, Grapevine Mills takes advantage not only of the airport location, but also its access and visibility from the regional highway system that connects to DFW.
Similarly, furniture giant IKEA is a major destination retailer, which typically places only one or two stores within a metropolitan trade area, preferably at the centre of multiple trade areas. The available land at airports and ability of airports to offer ‘made-to-suit zoning’ and negotiate competitive site location offerings is very attractive for destination retailers like IKEA. An added benefit is the direct proximity to the logistics network and supply chain that retailers rely on, allowing
An emerging trend is the strategic placement of factory outlet shops on or adjacent to airport lands in order to benefit from the regional population trade area capture, airport activity, tourists draw and highway locations. The Direct Factory Outlets (DFO) in the
Airport Village at Autralia’s Brisbane Airport is an excellent example of this trend. DFO offers over 100 brands and provides shoppers with a free airport shuttle service to and from the terminal. To attract customers living within the
Brisbane regional trade area, DFO pays for the return train ticket fare on Brisbane’s Airtrain rail transit line (which connects the airport with the urban area), allowing those without a vehicle to easily access this factory outlet shopping experience. At Oregon’s Portland International Airport, the Cascade Station project has been very successful with the
Airport authorities are recognising the significant non-aeronautical revenues that can flow from destination retail development
road system serves not only airports, but also the surrounding metropolitan regions. In many cases, airport retail
developments are on the daily commuting routes, facilitating strong sales capture rates for shopping, dining and entertainment spending.
Grapevine Mills shopping centre,
located just off airport lands north of Dallas/Fort Worth International Airport (DFW), can take advantage of vehicles travelling to and from the terminal along the International Parkway. It features over 150,000 square metres of shopping and dining, anchored by the adjacent Bass Pro Shops store (outdoor recreation, hunting and fishing), which acts as a destination hub attracting not only ‘airport-related’ customers, but also customers from around the Dallas-Fort Worth Metroplex trade area and beyond. A primary hotel cluster (including the Great Wolf Lodge Waterpark Resort Hotel and the 1,500 room Gaylord Convention Center) has been built around
GLOBAL AIRPORT CITIES
large volume retailers to have their logistics warehouse and primary retail outlet either together or in close proximity of one another, thereby reducing transportation costs.
At Athens International Airport, a 25,000 square metre IKEA store is located in close proximity to the Main Terminal Building within an Airport Retail Park and has enjoyed strong sales since its opening. The Airport Retail Park has continued
to see successful performance, recording over 3.5 million visitors in 2009, and tenants include Greek electronics giant Kotsovolos, do-it-yourself big box retail formats and factory outlets, operating under the ‘shop-in-a-shop’ concept offering over 400 brands under one roof. The Airport Retail Park has acted as an anchor for the gateway’s ‘airport city’ concept, facilitating the amenity for other airport development projects including the Airport Hotel and Metropolitan Expo Exhibition Centre.
development of its 120-acre mixed-use development property with retail, office and accommodation along Airport Way (the major route to the Airport Terminal Building). Anchored by IKEA, Best Buy Electronics Store and REI Sports, Cascade Station has a strong mix of tenants and restaurants that have allowed it to maintain a vacancy rate below 5% over the past two years, even during the financial crisis. Like Brisbane DFO, Cascade Station is
serviced by the MAX local light-rail transit line running between Portland’s urban core and the International Airport Terminal, with ridership of approximately 6,000 per week. There will also be 120,000 square metres of office park usage and three hotels, including the recently opened Starwood Aloft Hotel. It finally opened near the start of the
global economic crisis but was able to succeed due to its strong mix of tenants and excellent access from the airport
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