Is Aerotropolis Possible For Philadelphia Commercial Property?

By Author: supriyo banerjee
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Welcome to “Aerotropolis,” a term familiar to developing countries such as China and India, but still a bit foreign to Americans. Aerotropolis is most easily defined as a city built and developed around its airport. For cities like Dubai – which has essentially transformed itself into a global commerce hub – this concept has been a major contribution to its rapid growth. It offers the ability for business people, politicians, social activists, and other citizens to easily travel to and from their neighboring countries with ease. It is the next step in globalization, as international logistics and business networks, travel, and expedited shipping continue to take precedence. Aerotropolis is the future of the international city.

Washington D.C. and Dallas have already begun forming this urban hub in their cities – which begs the question, is aerotropolis possible in Philadelphia? The answer is yes, to a degree. The city’s Deputy Mayor for Transportation and Utilities, Rina Cutler, already has big plans to create this concept directly around the Philadelphia International Airport. This includes ...
... offices, restaurants, retail stores, and more, improving the outlook on new Philadelphia commercial property and economic development.

If all goes as planned, commercial real estate in Pennsylvania, and Philadelphia commercial property in particular, will experience major growth over the next 20 years or so. Large companies with multiple locations may consolidate to one central location, especially shipping, travel, and logistics related industries. Running a business so close to an airport and major roadways like I-95 and I-76 is a huge benefit to increase domestic and global commerce. The United States Postal Service has already contemplated consolidating to its large Philadelphia commercial property space right outside the airport for easier transportation access and reduced costs.

Aerotropolis also provides a great opportunity for owners of commercial real estate in Pennsylvania looking to expand. Since aerotropolis is essentially building a new urban hub, it means more interested renters with serious business investors and more job creation. Philadelphia commercial property owners have the chance to enter an untapped market, able to hone in on retail, hospitality, industrial, entertainment, logistics, and a number of other businesses.

The theory of aerotropolis is not perfect – in fact, in some places it has failed. Some of the successful Western cities have been built from the ground up using this theory from the beginning. So how does an urban airport hub thrive in an already established city like Philadelphia? Space is a large factor – there is only so much room to grow before hitting a limit. In addition, the highway infrastructure would certainly put constraints on construction. Not to mention noise and traffic concerns of nearby residents and Philadelphia citizens. However, as we emerge from the worst recession since the Great Depression, these aspects may be overlooked if the promise of job creation and Philadelphia commercial property development are at hand.

David Henderson is Vice President of Operations at The Henderson Group, a development company focusing on commercial real estate in Pennsylvania. If you are seeking Philadelphia commercial property for lease or purchase, visit us on the web.