Design and implementation of sustainable development programs using permaculture as a guiding methodology

Airport Lease Agreement

The use and leasing contracts between the airport and its users/tenants are the foundations on which the airport`s finances are built. We bring our unprecedented airport expertise to guide customers through the negotiation and development of airline operating and leasing contracts, airport leases, development contracts and concession contracts. It is also important that we often advise customers on nature, duration, terms of use and leases – strategies that can have a long-term impact on airport operations, maintenance and development. What does that mean? For non-aeronautical real estate, this means that an airport bases its rents and conditions on what the market recognizes for similar non-aeronautical characteristics in the environment and/or a similar and competing market around the airport – not at the airport. With non-aeronautical properties, you compete with other non-aeronautical properties in the vicinity, not with other airports in most cases. It also requires that consistency with the non-aeronautical market not only take into account similar foel-real estate values in the neighbourhood, but that other rental conditions should also be considered. These include items such as lease term, yields, adjustment mechanisms, etc. These factors may ultimately be similar to what you can generate at the airport, but they may depend more or less on the supply and demand characteristics of both markets. For example, while you are able to get a 10 per cent return on “rated” values at the airport, the market return for similar properties outside the airport can only be 7 to 8 per cent. In order to maximize your development opportunities through non-aeronautical land or airport sponsor facilities, you may need to expand or limit your definition of the competing market. It all depends on who you`re running for.

First, markets are changing. A lease negotiated in 2007 at the height of the economy and the air transport market is probably inadequate today, even if it was adapted – and probably especially afterwards – on the basis of an index. Even though it has been reassessed, most rental conditions provide that a rate cannot fall regardless of prevailing market conditions.

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