Unlocking hidden value at regional Australian airports

Making airport land work smarter.

We know that airports are critical infrastructure, but the land that surrounds them – often extensive and underused – has economic potential that remains largely untapped.

At PSA Infrastructure, we provide airports with practical support to turn dormant parcels of land into active, income-generating assets that support aviation operations and the wider community.

The case for better land use

Many regional airports have land holdings that exceed current operational requirements. While some of this space is restricted due to safety zones and CASA regulations, significant portions are developable – with a clear plan and the right advice.

What makes this land valuable isn’t just size. It’s location, connectivity and embedded infrastructure. These sites often have:

·       Proximity to road, rail and freight corridors

·       Access to essential utilities

·       Compatibility with industrial, commercial or agricultural uses

·       Potential to generate ongoing revenue while preserving operational flexibility

Commercial development done right

Airports across Australia are already seeing the benefits of unlocking their land through strategic development. Business parks and industrial precincts on airport land provide ideal sites for logistics, warehousing and services that rely on rapid transport access.

For operators, the most successful models favour long-term ground leases, allowing them to:

·       Retain ownership and future flexibility

·       Generate predictable income

·       Accommodate future airport expansion or infrastructure upgrades

This approach also aligns with regulatory expectations and supports future-proofed development.

A practical role for agriculture

In areas with strong primary industries, agricultural leasing can be a simple and effective use of underutilised airport land. Hay production, grazing and low-attraction crops are common examples. These uses:

·       Generate income without large capital outlay

·       Help maintain open space buffers

·       Avoid wildlife risks that might interfere with aircraft operations

·       Strengthen local partnerships with farming communities

Renewable energy generation

The layout and location of airports – broad, flat and clear of obstructions – make them strong candidates for renewable energy installations. Solar farms are especially viable:

·       Panels can be placed without causing glare or interfering with flight paths

·       Energy generation can be sold to the grid or used to offset airport consumption

·       Renewable projects support broader financial and sustainability goals

Training and education opportunities

Aviation-related training facilities – including flight schools, drone programs and aircraft maintenance training – are another avenue for productive land use. They not only provide income but also contribute to regional workforce development.

Co-locating these facilities at airports creates an ecosystem that supports aviation careers and skills pipelines, especially in regions facing talent shortages.

How leading airports make it happen

Unlocking land value isn’t just about having the space. Airports that have succeeded typically follow several key steps:

Start with a land audit

Identify areas that are truly surplus versus those needed for long-term operations or future growth.

Engage early and openly

Bring the community into the conversation to ensure that developments reflect local needs and face fewer barriers.

Balance ambition with compatibility

Respect height limits, lighting restrictions, wildlife management, and operational safety.

Diversify where possible

Add resilience with mixed-use development. When one sector is under-performing, others can fill the gap.

Retain control with smart leasing

Ensure income and flexibility with long-term leases, without the risks associated with selling strategic land.

Common challenges and how to overcome them

Despite the benefits, many regional airports hesitate to act. Common reasons include:

·       Lack of internal expertise in commercial land development

·       Uncertainty around regulations and aviation overlays

·       Capital constraints for initial infrastructure works

·       Risk aversion due to complex stakeholder environments

These challenges are real, but they’re solvable! Progressive operators are turning to public-private partnerships, staged rollout strategies and external consultants who bring in the specific skills councils may lack in-house.

The bigger picture

Unlocking the value of surplus land is enables regional airports to become self-sustaining contributors to their local economies. With appropriate planning and governance, these sites can:

·       Fund critical infrastructure upgrades

·       Create jobs and attract investment

·       Strengthen the resilience of the aviation sector

·       Align airport development with local growth priorities

As access to government funding tightens, airports that take initiative will be in the best position to thrive.

Talk to the PSA Infrastructure team

PSA Infrastructure supports regional airports through this journey – by combining aviation planning, strategic infrastructure advice, land use assessments and stakeholder engagement into a single, coordinated service.

Our work with councils across Queensland and beyond shows what’s possible when airports plan for growth.

Explore the potential of your airport land.