Guidebook on Best Management Practices for Leasing and Developing Airport Property

An effective airport leasing policy can be a key asset of airport management in optimizing utilization and financial performance of airport facilities and property. <span style="mso-spacerun: yes"> </span>Such a policy, coupled with effective implementation guidance, can establish a clear set of objectives and performance benchmarks for airport management in conducting a successful negotiation that generates a business agreement meeting the needs of the airport, tenants, investors, and local interests. Negotiating and concluding an airport business agreement requires special expertise in understanding the nature of a diverse group of businesses. <span style="mso-spacerun: yes"> </span>Identifying and acquiring such expertise may be challenging for many airports. <span style="mso-spacerun: yes"> </span>Where does airport management turn when facing its first air cargo building proposal, its first office building proposal, its first corporate hangar complex proposal, or its first hotel proposal? <span style="mso-spacerun: yes"> </span>How can airport management evaluate any of these proposals for the first time if it has no roadmap?<span style="mso-spacerun: yes"> </span>Past experience has shown that trial and error does not often lead to successful airport leasing and development policies.<span style="mso-spacerun: yes">  </span>When airport management understands the risks, motivations, and objectives of all stakeholders, there is a greater likelihood for developing a portfolio of successful facilities that best serves the interests of all concerned. Airport management and potential tenants may understand the key aspects of a business agreement; however, because both parties experience different risks, motivations, and objectives, they may begin negotiations from very different positions.<span style="mso-spacerun: yes">  </span>An established set of leasing, management, and development policies can help airport operators gain a better understanding of what is most important to future tenants. <span style="mso-spacerun: yes"> </span>The ability to identify the difference between what airport management would like to have as opposed to what it must have while also identifying that difference for potential tenants, significantly increases the odds for a successful negotiation and business agreement. The objective of this research is to develop a guidebook for airport management and other relevant stakeholders to implement leasing, property management, and development agreements in the context of airport improvement and expansion plans.<span style="mso-spacerun: yes">  </span>The research will identify and define best management practices used in formulating airport leasing and development policies to support public and private investments for aeronautical and non-aeronautical uses at airports.<span style="mso-spacerun: yes">  </span>Relevant stakeholders should include, but are not limited to, tenants, investors, and local interests. The guidebook should incorporate best management practices for public-use airports and stakeholders to optimize both public and private investments. <span style="mso-spacerun: yes"> </span>Principles and practices should be applicable to all airports regardless of size and complexity.<span style="mso-spacerun: yes">  </span>This research will assist airport proprietors in making planning, policy, and financial decisions that will protect both the federal and local investment in the national airport system.</font></p>

Language

  • English

Project

  • Status: Completed
  • Funding: $350000.00
  • Contract Numbers:

    Project 1-08

  • Sponsor Organizations:

    Federal Aviation Administration

    800 Independence Avenue, SW
    Washington, DC  United States  20591

    Airport Cooperative Research Program

    Transportation Research Board
    500 Fifth Street, NW
    Washington, DC    20001
  • Project Managers:

    Navarrete, Joseph

  • Performing Organizations:

    R.W. Armstrong

    ,    
  • Principal Investigators:

    Crider, Rick

  • Start Date: 20080624
  • Expected Completion Date: 0
  • Actual Completion Date: 20101015
  • Source Data: RiP Project 15857

Subject/Index Terms

Filing Info

  • Accession Number: 01462701
  • Record Type: Research project
  • Source Agency: Transportation Research Board
  • Contract Numbers: Project 1-08
  • Files: TRB, RiP, USDOT
  • Created Date: Jan 3 2013 2:08PM