London Heathrow, the largest freight airport in the UK, remains the most expensive industrial location in Europe for occupiers, with prime off-airport rents now at EUR 238 m[sup]2[/sup] per year, according to King Sturge's Airport Property Market survey for 2008. Improved economic and occupier outlook across Europe, combined with a shortage of available prime space in metropolitan areas are driving up out-of-town office rental values, the property adviser says.
London Heathrow, the largest freight airport in the UK, remains the most expensive industrial location in Europe for occupiers, with prime off-airport rents now at EUR 238 m2 per year, according to King Sturge's Airport Property Market survey for 2008. Improved economic and occupier outlook across Europe, combined with a shortage of available prime space in metropolitan areas are driving up out-of-town office rental values, the property adviser says.
The report also details how air freight companies are relocating to airports that can best serve the booming markets in Eastern Europe. The growth of air freight traffic at these airports is expected to stimulate demand for the development of property and infrastructure facilities.
Air traffic levels are booming, according to King Sturge. Air passenger traffic globally reached an all-time high of 4.4 billion passengers in 2006, an increase of 4.8% over 2005, according to annual traffic figures published by the Airports Council International. Total air freight traffic grew by 3.6% to 85.6 million tonnes last year.
Looking at trends across Europe, Kim Smith, head of European research at King Sturge, notes that 'the growth of air traffic at European airports continues and stimulates property and infrastructure development. Regional airports are seeing the strongest growth and benefit from the increased mobility of populations in Europe and the demand for low-cost flights.'
