The rise of the airport property market in Australia
Major airports over the last 30 years have transformed from largely utilitarian and specialised transportation facilities moving passengers and freight towards more diversified business precincts capitalising on diverse revenue streams. In the process, they have become destinations in their own right. Significant marketisation of airports has been driven by the convergence of three major forces (Graham 2008): commercialisation (transition of public utilities to trading enterprises), privatisation (new ownership and management) and globalisation (corporate organisation, economic activity and air travel). Privatisation, in particular, has generated the rise of a new airport property market spread across commercial, retail, industrial and institutional sectors. Much of the commercial trade generated by airports relates directly to passenger movements through in-terminal retailing while airport-related logistics and airline services entities can also generate significant revenues. Of primary interest in this chapter are new nonaeronautical commercial uses located at but not necessarily of the airport.