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Nonaeronautical Revenue Development

R&A has extensive experience helping airport operators improve their revenue streams from nonaeronautical sources, such as automobile parking, compatible land development, and enhanced terminal concessions.  By enhancing nonaeronautical revenues, airport operators can soften the effects of economic downturns by further diversifying their revenue streams, reducing their financial risk, and strengthening their cash flow while improving customer service and community relations. 

R&A has prepared parking revenue maximization and competition studies, negotiated and reviewed cargo and general aviation business leases, providds rental car financial and business planning, and analyzed commercial vehicle fees.  In addition, our real estate and land use experts have worked closely with national development consultants and local market experts to assess local conditions and identify the highest and best use for developable properties, both on and off airport.  R&A's business and financial expertise is instrumental in helping airport operators develop and negotiate preferred business strategies and lease and use agreements that help maximize airport revenue and maintain long-term flexibility. 

Nonaeronautical revenue development services offered by R&A include the following.    

  • Collateral Development/Land Use Planning – R&A has prepared collateral development and land use plans for airports throughout the United States and internationally, aimed at identifying the highest and best commercial, retail, industrial, or recreational uses for excess or underused airport property. We have also advised on development options for intermodal facilities, including consolidated rental car facilities, light rail and mass transit stations, and other transportation centers adjacent to or on airport property. As airport planners, we understand the importance of first identifying airport property that should be preserved for aeronautical uses or that is subject to Federal Aviation Administration (FAA) height or safety restrictions, noise restrictions, and FAA grant assurances. Once these constraints are defined, however, our land use planning experts can help identify and evaluate excess property that may present opportunities for nonaeronautical development.
  • Automobile Public Parking/Ground Transportation Planning – On-airport parking revenues are typically the largest source of nonaeronautical revenues at airports. R&A works to identify opportunities to maximize airport parking and ground transportation revenues, improving efficiency while minimizing costs, at the same time improving customer service and providing incentives to increase the use of airport facilities. R&A has significant experience analyzing and recommending solutions for automobile parking facilities and operations, including assessing public and employee parking demands and developing requirements; preparing parking master plans, parking facility layouts, parking revenue and rate analyses, and strategic parking management plans; developing marketing and branding strategies and requests for proposals/qualifications (RFPs/RFQs) packages; conducting parking facility privatization feasibility studies; and providing expert witness services. In addition, R&A has undertaken a number of ground transportation commercial vehicle studies, including industry benchmarking of commercial vehicle business arrangements and fees, developing RFPs/RFQs for commercial vehicle services, calculating and making recommendations for commercial vehicle fees, and preparing concession and management plans for parking and commercial ground transportation services.
  • Business and Leasing Strategy Assistance – R&A's business and financial staff has extensive experience assisting airport operators in reviewing, drafting, and implementing tenant leases and lease provisions. Whether assisting with the development of new leases or updating older or expired tenant leases to reflect current market conditions, R&A works to maximize an airport's nonaeronautical revenue stream and ensure that the airport enterprise recovers the costs of operating, maintaining, and/or constructing tenant facilities. In addition to nonaeronautical tenants and facilities, R&A also provides business and leasing strategy assistance for a variety of airport tenants and facilities, including airlines, rental car companies, automobile parking managers, cargo handlers, and general aviation tenants. Our experience enables us to assist airport operators in whatever capacity necessary, including development of operational and financial strategies, drafting of leases, and assistance in drafting and reviewing tenant RFPs. We can also work with operators and/or legal counsel to ensure that any nonaeronautical tenant leases comply with FAA guidelines concerning revenue diversion and airport self-sustainability.
  • Privatization/Third Party Outsourcing Support – Public/private partnerships in developing and operating airport facilities and land in the United States are becoming more common. R&A has assisted a number of airport operators in exploring options for outsourcing or privatizing airport facilities or services traditionally managed by airport operators, including automobile parking, cargo, and general aviation facilities. R&A is experienced in weighing the pros and cons associated with the potential privatization or outsourcing of the management and development of airport facilities or property, and often assists airport operators in decision-making as it relates to achieving their particular goals and objectives. Our business and financial expertise also enables us to identify various creative approaches to financing and operating airport facilities, and developing land on or near the airport.
  • Real Estate and Economic Development Strategies – The recent popularity of the "airport city" or "aerotropolis" concept has focused attention on airports as the primary nodes in an increasingly global economy. Development opportunities are therefore emerging around airports as regional planning and development agencies seek better intermodal mass transit connections, employment-generating business and logistics hubs, and increased global tourism, R&A's real estate and land use professionals frequently partner with these planning and development agencies as well as economic development consultants, real estate developers, and architecture/engineering firms to evaluate near- and long-term development opportunities on and around airports. Our services are focused on helping our clients recognize the opportunities and constraints for development to provide the best opportunity for success and the greatest economic return to the airport and the community it serves.
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