Commercial Guidebook | Real Estate Investor Magazine Commercial Handbook 2013 | Page 28

SMART MOVES BY ANGIE REDMOND The Rise Of The Aerotropolis The new face of commercial investment M any city airports have become airport c it ies, w it h t he rapid e x pa nsion of airport-linked facilities such as commercial buildings, warehouses and transport; the 21st century has embraced the concept of the ‘Aerotropolis’. Dr John Kasarda, a world-renowned figure for his work on airport cities, is considered the leading developer of the Aerotropolis concept, an idea that was named one of the ten ideas that will change the world by Time magazine in 2011. He explains: “The Aerotropolis, like any other traditional city, consists of a central core with rings of development permeating outwards; unlike a traditional city, however, the cit y’s core is an airport and all neighbouring development supports and is supported in turn by the airport industry.” One look at city development highlights the strong relationship between transportation and growth. The very first modern cities developed around seaports and then rivers and canals; later it was railways and highways. And now the in the 21st century, airports have become the primary drivers of urban growth and economic success. Gauteng Premier Nomvula Mokonyane says, “The Aerotropolis should be seen as a vehicle to position the SA economy among the world economies. It must be about creating jobs, 26 Commercial Handbook 2013 poverty alleviation and the equitable share of business opportunities.” Airports are vital contributors to a city’s economy and the Aerotropolis model could become a major contributor to economic invigoration. The airport in Chicago, USA is the second largest office market in Midwest America, while Washington’s airport area has more retail sales than any other city besides Manhattan. A new airport development can stimulate a struggling economy and generate billions in annual economic activity, tax revenue and create and sustain jobs, something sorely needed in South Africa. Aerotropolis projects There are a number of exciting and innovative Aerotropolis projects in the pipeline for South Africa. This will have a massive impact on commercial property as new avenues for investment open up. Two of these projects are Dube City and OR Tambo. Dube City is the new South African hub of international trade and business. It is 1km from the International Terminal, 3.3 km from the N2 and 1.8 km from the R102. It is a unique, vibrant, cosmopolitan 24-hour work, play and stay destination, a city that ref lects the unique cultural diversity of www.reimag.co.za