Upon the news that UK Government has agreed to a new runway at London Heathrow Airport, industrial and planning experts at global real estate advisor, Colliers International, had the following comments:
Len Rosso, Head of Industrial and Logistics at Colliers International commenting on the decision said: “While there is certainly a business case for runway expansions at both Heathrow and Gatwick; given the significant investment in Heathrow’s reputation as a globally significant transport hub, today’s decision simply had to be in favour of Heathrow.
“So much time and capital has already been invested at Heathrow and the surrounding area to build the best connections, infrastructure and facilities that, to have chosen Gatwick, the Government would have severely undermined Heathrow’s reputation and status on the world stage. At this time, Gatwick simply cannot maximise the opportunities that a large scale project such as this can bring in quite same way that Heathrow can.
“The outcome is also great news for the future for West London which will no doubt benefit economically from the creation of new jobs and the increased investment and commerce this huge project will bring. Heathrow can already demand the amongst highest rents and land values for warehouse space in the UK, in excess of £15.50 per sq ft and £2 million per acre respectively, as occupiers compete for scare space. We can expect this competition to continue as occupiers adapt to the increased traffic flowing through the airport.
In the short and medium-term we can expect some disruption, particularly as details of exactly where the new runway will be located emerge, but I am hopeful that the government, the local authority and Heathrow Airport Ltd can work together to find suitable solutions to any displacement.
“The years of delay to get to this point have created a period of uncertainty in the market so I welcome today’s decision that firmly underpins Heathrow future as a truly world-class airport.”
Jonathan Manns, Director of Planning at Colliers International commenting on the decision said: “The Government has long accepted that airport capacity must grow and that this is critical to national prosperity. Evidence suggests that existing airports in South-East England have been performing sub-optimally since the late 1990s and capacity is forecast to be full across each by 2030. Today’s decision to expand Heathrow takes us a step closer to addressing this.
“The extent to which other stakeholders including politicians, community groups and airport operators will protest remains to be seen. However the Government’s decision also brings other, equally significant, policy questions into sharp focus. Most importantly, the extension of Heathrow will undoubtedly precipitate a review of housing and employment forecasts in West London and the Thames Corridor. Spatial designations, such as the green belt and strategic gap which separates Hillingdon from Slough, will be permanently impacted by construction of a new runway and rail access.
“The decision and its implications are particularly pertinent in light of the London Society’s “Re/Shaping London” White Paper which was released last week. One possible future for the area around Heathrow could be achieved through designation of a West London Green Web. This would transform land currently defined as green belt to secure a multi-functional green infrastructure landscape, providing new homes and workplaces that are sustainably located to support an expanded Heathrow.”
