It has been in the works for a long time but ground was finally broken for a new brand name hotel in Indianapolis International Airport. There will be an economic gain for the Airport and for the City once this project is in operation. However, whether you are in the Indianapolis area or not, what does this mean for commercial real estate?
Let's face it. Other hotels near the Airport are likely to lose revenue as overnight guests choose a more convenient setting. The number of single night stays will probably drop. Supporting transportation services, nearby restaurants and bars, and possibly entertainment venues will lose customers that will have no reason to venture away from the hotel.
Some will see this news and move on, thinking it doesn't impact their commercial real estate lives. And some of them may miss out. If you own or are thinking of investing or owning commercial property within proximity of a major airport, you need to be aware of possibilities which could negatively or positively impact your business.
For example, an investor might be able to get a good deal on a hotel property near the Indy airport by pointing out the potential loss of business. Perhaps they see the need for a conference or convention center which could thrive in proximity to thousands of travelers from other parts of the country.
Could this happen? You don't know if you don't do the research. Let this be another example of how having the right information could turn into a huge real estate opportunity.
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