Ontario Airport: The Great Opportunity of the Inland Empire

By Dennis Kaiser

Connect Inland Empire returned to the Ontario Convention Center this month for an annual conference that attracted 250 commercial real estate industry professionals for an afternoon of informative panels, networking and cocktails. One of the keynote conversations centered around the impact of Ontario International Airport.

CBRE’s Ian Britton noted that the Ontario Airport came under local control in 2016, and since then it has been easy to see the value of such a shift. That has translated to new tenants and amenities at the airport, which benefits travelers, airlines and the regional economy, noting that the airport contributes $5 billion to the Inland Empire economy.

Above and beyond the economic impact, the airport’s coming under the purvey of leaders in the Inland Empire has served as a case study in the value of collective voices speaking out.

Ontario City Council’s Mayor Pro-Tem Alan D. Wapner says a significant amount of support from across the Inland Empire region “set Ontario free.” Leaders from the City of Los Angeles, which previously controlled the airport through Los Angeles World Airports, indicated to Wapner they recognized the resolve by interests across the Inland Empire, and that made a difference in their decision to relinquish control. Already annual passenger counts have risen from 2.5 million to 5 million.

That shift has in turn benefitted the region’s economy in terms of increased passenger traffic (now on track to reach five million passengers in 2018) and a boost in air cargo. But perhaps more important, Wapner notes, is the long-term ability for the airport to capture opportunities that may have been missed when it was operated by Los Angeles. Those could be from new hospitality or tourism revenue, additional air cargo or developing land the airport controls, which is expected to benefit airlines in the form of lower aviation costs.

Ontario International Airport Authority’s Mark Thorpe called the shift to local control an “historic transfer,” that has resulted in better alignment of interests that will better serve the whole region. He believes they will be able to create a better vision, which was something that should have been done all along.

It also opens up new opportunities to develop land at the airport, both on-site and off-site, which is expected to provide positive impacts. Thorpe notes Ontario doesn’t face some of the constraints other airports in SoCal do, so that is expected to fuel its “ability to grow.”

As the airport leadership works through strategic plans to bring land to market, either as development opportunities or new space for lease, he predicts there will be downstream impacts that revs up a major Inland Empire economic engine. He envisions creating a balance between freight and passengers, as the airport emerges as a key international trade alley.

The fact that Ontario serves as an international gateway, it can continue to lead and capture growth in e-commerce trade. He notes, the cargo carried in one international flight into Ontario Airport could drive $600 million to $700 million in annual economic impact. Ontario is becoming a “crossroads for international trade,” says Thorpe.

For comments, questions or concerns, please contact Dennis Kaiser