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Airspace leases: property out of thin air

It is the desire of almost every property investor to make their assets “sweat” by maximising the income available from them. One way investors achieve this is by granting leases of the airspace above their properties. Investors may, for example, lease the airspace to a developer who can help them improve the density of their building by adding a floor or more. Alternatively, the investor may lease the airspace to a tenant who will install telecommunications equipment or solar panels on the roof. This article presents the questions an investor has to ask before embarking on this route, as it is littered with potential issues. It assumes that you are an investor looking to lease airspace to a developer, to improve the density of your asset.

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