AIRPORT CITIES DAY 2 STREAM B SESSION 1

1. MXDdevelopment.com
Session B1
Commercial Development & Airport Real Estate
Chris LeTourneur - President & CEO, MXD
Connecting a world of opportunitiesTM
2014 AIRPORT CITIES
WORLD CONFERENCE & EXHIBITION
Kuala Lumpur

2. MXDdevelopment.com
Thank You to Our Fantastic Hosts

3. MXDdevelopment.com
Thank You to Our Fantastic Hosts

4. MXDdevelopment.com
Leveraging the Real Estate Assets
Airport Cities
are the
for Regional
Non-Aero Revenue
Commercial &
Economic
Development
Competitive
Accelerators
Gateways
Catalysts

5. MXDdevelopment.com
Leveraging Connectivity
LEVERAGING
AIRPORT GATEWAY
for ECONOMIC
DIVERSIFICATION
REGIONAL
ECONOMIC
NICHE

6. MXDdevelopment.com
Airport City
Commercial
Development
Generates
Non-Aero
Revenue &
Grows Demand
for Air Travel
Drives Regional
Economic
Activity &
Airport
Competitiveness
Drives Airline
Interest for
Route
Development
Driving Air Service - Route Demand

7. MXDdevelopment.com
MXD’s Role
Creating Airport Cities
AIRPORTS
COMMERCIAL
DEVELOPMENT
CONNECTING
ECONOMIC
& REVENUE
DEVELOPMENT
Airport City Master Planning
Case Study Profiling/Benchmarking
Market Analysis & Positioning
Financial Feasibility & Structuring
Economic Cluster Analysis
Commercial Development
Landside Development Strategy
Implementation & Governance
Marketing, Branding & Identity

8. MXDdevelopment.com
Edmonton International Airport
Muscat International Airport
Memphis Aerotropolis
Belo Horizonte, BrazilVancouver International Airport
Halifax Stanfield Intl AirportWinnipeg International Airport
Denver International
Aerotropoli & Connected Cities by MXD
Hong Kong SkyCity

9. MXDdevelopment.com
Airports’ Role in Commercial Development
© Property of MXD Development Strategists
Landside Commercial Planning &
Ground Leasing
Terminal Development &
Concessions Revenue
Airport Master Planning
Identifying Landside Commercial Areas
Airport as Developer or
Joint Venture Partner

10. MXDdevelopment.com
Airport Management & Development Models
UNITED STATES
 Governed at City/County Level
 Subject to local politics (-)
 FAA impacts/implications (+/-)
 Bonding/financing capabilities (+)
 Tax Payer sensitivity (-)
CANADA / AUSTRALIA
 Quasi Private-Public
 Leased Federally Owned Property
 Autonomy from local politics (+)
 Flexibility for Innovative Devlpt (+)
 Must Generate Non-Aero Revenues
MIDDLE EAST
 Sovereign ownership/operation
 Transcend reality - innovative
 Profitability is not only driver
 Autonomous decision making (+)
 Speed to market is fast (+)
AFRICA / ASIA / EUROPE
 Privatized / Airport Companies
 Profitability is bottom line
 Vested in Commercial Development
 High Speed Rail Links (+)
 Embrace Mixed-Use TOD (+)

11. MXDdevelopment.com
Market &
Revenue
Assessment
Airport City
Case Studies
Site
Analysis
Economic
Cluster
Analysis
Optimal
Development
Program
Engineering
Concept
Analysis
Concept
Layout
Planning
Financial
Analysis
Commercial
Development
Plan
Branding &
Identity
Target Tenants
Marketing
Materials
Stage One - Development Strategy
Stage Two - Development Plan
Stage Three - Marketing Strategy
Political/
Initiatives
Stakeholders
Implementation
Plan
Airports Thinking Like Developers
© Property of MXD Development Strategists

12. MXDdevelopment.com
Airport Cities & Economic Clusters
Gateway to Accelerate Regional Economic Development
© Property of MXD Development Strategists
Create
More and
Better Jobs
Attract
Inward
Investment
Diversify the
Economy
Enhance
Tourism

13. MXDdevelopment.com
Leveraging Economic Clusters

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Up & Down Stream Economic Clusters
Economic
Clusters
Aviation
Logistics/
Distribution
Education
Bio-Life
Sciences
Perishables
IT/CT
Tech
R & D
Engine
Testing
Avionics
Advanced
Manufacturing
Composite
Materials
Parts
Assembly
Chemicals
Resins
Cloud
Computing
R & D
Service/
Assembly
Foods &
Flowers Nutra &
Pharma
Temp
Control
Chain
Health
R&D
Devices
Incubators
Supply
Chain
Cold/Dry
Storage
Skills
Jobs Niches
Technology

15. MXDdevelopment.com
DENVER INTERNATIONAL AIRPORT CITY, CO, USABelo Horizonte Aerotropolis, Brazil
Logistics &
Distribution
Business Park
Agribusiness &
Food Processing Lagoa Santa
Town Center
University
Campus
R & D
Discovery
Park
Retail Outlet
Center
Fashion City &
Exhibition Center
Heavy Equipment
Auction
SIX
Semiconductor
Town Center
Aerotech
Park
Health
Sciences
Center
Temperature-
Controlled Cold
Chain Facilities
Administrative
Service Center
Luzia Cultural &
Archaeological
Center
MG424/LMG800: Aerotropolis City Center: Lagoa Santa:
Six Semiconductor:
Using “Pilot Projects” as Catalysts, Enablers & Accelerators
Triggering “Upstream & Downstream” Economic Activities

16. MXDdevelopment.com
DENVER INTERNATIONAL AIRPORT CITY, CO, USABelo Horizonte Aerotropolis, Brazil
Economic Impacts for 20-Year Build-Out:
NEW JOBS
660,000
PUBLIC
INFRASTRUSTURE
INVESTMENTS
$10 Billion PRIVATE
DEVELOPMENT
INVESTMENTS
$100+ Billion
NEW POPULATION FROM
NEW DIRECT JOBS
1 Million
ANNUAL BUSINESS
OUTPUT
$82 Billion
NEW DEVELOPMENT
FLOORSPACE
190 Million sf
ANNUAL TAX
REVENUES
$10 Billion

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Memphis Aerotropolis
COMMUNICATING WITH
COMMUNITIESAGENCIES BUSINESSES

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Telecom & GeoSpatial
Tech
Life Sciences &
CRO’s
R & DAerotropolis Institute
Targeted Economic Clusters & Tenants
Targeted Economic Clusters & Tenants
Airport West - 1 (AW-1)
• Memphis Aerotropolis Institute
• Single-Tenant Flex
• Research Commercialization
• Corporate Hotels & Conference
• Discovery Business Park Incubator
• Contractual Research Org’s (CRO’s)
Land Use GFA (SF) Avg. FAR Land Req's
(Acres)
Industrial 337,500 0.23 33.8
Office 382,500 0.27 33.0
Retail 80,000 0.25 7.4
Lodging 122,500 0.52 5.4
Residential - - -
Institutional 229,500 0.90 5.9
Totals 1,152,000 0.31 85.5
Land Use Program (Net Additional)
Memphis Aerotropolis

19. MXDdevelopment.com
Memphis Aerotropolis
Airport West - 1 (AW-1)

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Memphis Aerotropolis

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Memphis Aerotropolis

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Ekurhuleni Aerotropolis

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Ekurhuleni Aerotropolis
Economic Connectivity

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Ekurhuleni Aerotropolis
Stakeholder Outreach

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Ekurhuleni Aerotropolis
Economic Development Districts

26. MXDdevelopment.com© Property of MXD Development Strategists
Level 2
AIRPORT INSTALLS INFRASTRUCTURE &
LEASES SERVICED LAND
Level 4
AIRPORT INSTALLS INFRASTRUCTURE &
PARTICIPATES IN CASH AND/OR BUILDING CONSTRUCTION
IN JOINT VENTURE
Level 3
AIRPORT INSTALLS INFRASTRUCTURE &
PARTICIPATES IN JOINT VENTURE
BASED ON RESIDUAL LAND VALUE
Level 1
AIRPORT GROUND LEASES
RAW LAND ONLY
Level 5
AIRPORT INSTALLS INFRASTRUCTURE,
CONSTRUCTS BUILDINGS, MARKETS &
PROPERTY MANAGES DEVELOPMENT PROJECT
Different
Land Use
Development
Projects
require
Different
Approaches
Airport must
consider its Core
Abilities versus
Partners who are
Experts in
Marketing,
Development &
Management of
specific project
types
Levels of Airport Development Risk to Reward

27. MXDdevelopment.com
The level of Airport participation in Airport City real estate development
relates to in-house abilities and upside revenue potential.
Hierarchy of Risk in Airport Participation

28. MXDdevelopment.com
Marketing, Implementation & Governance
Development
Services Division
Non-Aeronautical
Revenue Management
Property Management
Ground Leasing, Joint-
Venture Partnerships,
Construction &
Development Agreements
Groundside
Infrastructure/Services
Development
DEVELOPMENT & REVENUE PLANNING & MARKETING
Land Use Planning &
Design
Criteria/Guidelines
Real Estate Marketing
Development Review
(Expedited Process at
the Airport)
Municipal
Authority
Inter-Jurisdictional
Improvement District
& Participation
Liaise
Inter-Jurisdictional
Liaison
LiaiseLiaise
Liaise
Airports
becoming
Active in
Development
Process
Development
Partnerships
Infrastructure
Agreements
Marketing &
Property
Management
Design
Guidelines
Inter-Jurisdiction
Agreements

29. MXDdevelopment.com
Airport City Development Approaches
Who What How

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Airport City Development Approaches
Who What Where

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Airport City Development Approaches
What How Where

32. MXDdevelopment.com
Thank You!
MXDdevelopment.com
Chris LeTourneur, President & CEO
chris@mxddevelopment.com
+1-604-644-4139

33. MXDdevelopment.com
Our Outstanding Speakers
Kahir Mirza - Malaysia Airports
Senior General Manager
Yuta Inoue – MFMA Development Sdn Bhd
General Manager
Mari Peltomaki - Airport Area Marketing Ltd.
Project Manager
Hubert Fontanel - Aeroports de Paris
Deputy Director
Session B1:
Commercial Development & Airport Real Estate