A second category of buildings in the portfolio consists of on-tarmac facilities, the even more efficient structures situated on airport property. Meyer says the number and size of such structures are determined by the amount of cargo the airport handles, with about one sf of on-tarmac building space for every metric ton of cargo handled annually. The amount of nearby freight-forwarding space required is approximately four sf for every metric ton brought through the airport.

In Meyer's opinion, the nation's international terminals face a growing shortage of cargo facilities because of about 6% annual growth in airfreight traffic. In addition, where traffic from Asia, the major source of increase, used to come almost exclusively through West Coast airports, the extended reach of newer planes allows them to carry cargo to the middle of the country and in some cases all the way to the East Coast.

Meyer says Dallas in particular is profiting from the opportunities offered by the newer aircraft because it has become a primary hub for international passenger travel. Contrary to popular perceptions that most freight is shipped on specifically designated flights, Meyer explains that 50% to 70% of international airfreight is carried in the hold of passenger jets. Dallas' more central location relative to Los Angeles also increases its attractiveness to freight forwarders. The newly purchased portfolio includes 15 facilities totaling more than 1.2 million sf immediately north and west of DFW, increasing AMB's Dallas holdings by 28% to approximately 5.5 million sf.

However, Seattle and Houston are also experiencing growth, Meyer adds, because of the relationship between their air and seaports and quicker access to certain markets than provided by Los Angeles. In Seattle, AMB expanded its Seattle area presence to approximately 8.8 million sf with the addition of a 137,000-sf air-freight facility directly adjacent to SeaTac. It added 913,000 sf in Houston, to bring its airport-related holdings there to 1.3 million sf.