Ruth Haines
Buying a hangar at an airport is a possibility, but there are a few things to consider. Firstly, it's important to distinguish between leasing and buying. While you can lease a hangar at an airport, private ownership is usually not allowed at municipal airports, and even if you build the hangar yourself, it may become airport property after a certain period, typically between 10 and 20 years. If you're set on owning a hangar, you may need to look into private air park developments, where you can buy land adjacent to the airport and build your own hangar. However, even in these cases, you may need to sign an access agreement with the airport to use their facilities. Additionally, when it comes to leasing, it's important to carefully review all the documents, including any ground or master leases, to understand your rights and obligations, as airports can change rules and land use.
Can you buy a hangar at an airport?
| Characteristics | Values |
|---|---|
| Private ownership | Usually not allowed at municipal airports. |
| Lease | Typically 10-20 years with possible 5-10 year extensions. |
| Lease extensions | May be indexed to a local commercial real estate price index. |
| Lease renewal | Airports may not renew the lease after 30-50 years. |
| Subleasing | May be prohibited by the airport. |
| Lease termination | Airports may terminate the lease with 90 days' notice. |
| Master lease | Airports may lease to an FBO, which then subleases to tenants. |
| Ground lease | Airports may retain ownership of the land the hangar occupies. |
| Purchase price | May vary based on size, location, and condition. |
| Monthly costs | May include water, electricity, and maintenance. |
| Resale market | May vary depending on location and demand. |
| Non-aeronautical use | FAA has policies regarding non-aeronautical use of hangars. |
| Online resources | HangarTrader offers free ads and a waiting list for hangars. |
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What You'll Learn
- Private ownership of hangars is usually not allowed at municipal airports
- You can lease the land from the airport for 10-20 years, with possible extensions
- The hangar may revert to the airport owner after the lease ends
- You can buy land adjacent to private airports and execute an access agreement to use the ramp and runway
- You can buy a hangar but the airport owner may own the land it occupies
Private ownership of hangars is usually not allowed at municipal airports
When leasing land for a hangar, it is important to carefully review all documents, including any ground or master lease, as these can affect your rights and obligations on airport property. For example, in the case of Airstar Corp. v. Keystone Aviation LLC, Airstar Corporation subleased a hangar from Keystone Aviation LLC, which had leased the hangar from the city. When the city and Keystone voluntarily agreed to terminate the master lease, Airstar's sublease was also terminated, resulting in litigation.
Additionally, airport authorities can change rules and land use, which may impact your hangar ownership. For example, one individual was evicted from their hangar with 90 days' notice when the airport owner decided to use the land for a different purpose. It is also important to note that banks may be reluctant to provide loans for hangars that do not include the land underneath.
To ensure appropriate use of hangars, airport sponsors should manage hangar use through a leasing program, monitor hangar use, and take steps to prevent unapproved non-aeronautical use. While the primary purpose of a hangar is aircraft storage, non-aeronautical items can be stored as long as they do not impact other aeronautical uses or create discriminatory conditions.
If you are interested in owning a hangar, it is advisable to join a waiting list for notifications of hangars that become available or to explore the option of purchasing a lot at a private "air park" development.
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You can lease the land from the airport for 10-20 years, with possible extensions
If you want to own a hangar, you can lease the land from the airport for 10-20 years, with possible extensions. This is a typical model for hangar ownership. The lease will often include one or two 5-10 year extensions. However, it is important to note that the hangar will eventually revert to the airport owner after 30-50 years. During the lease, you will be responsible for paying property tax on the hangar as commercial real estate. Depending on the state, you may also need to pay property tax on the lease payment.
When entering into a lease for a hangar, it is important to carefully review all the relevant documents, including any ground or master lease. This will help you understand your rights and obligations as a tenant on airport property. For example, you should be aware of any restrictions on activities or storage within the hangar. In some cases, airports may prohibit certain types of maintenance, aircraft building, or fuel storage. Additionally, there may be limitations on subleasing portions of the hangar.
It is also crucial to consider the financial implications of owning a hangar. While purchasing a hangar can be a significant financial commitment, it is important to note that you may need to generate rental income to offset the costs. Additionally, banks may be reluctant to provide loans for hangars that do not include the underlying land. Therefore, it is essential to carefully evaluate the purchase price, monthly costs, and potential resale options before making a decision.
Furthermore, it is important to be aware of any plans or projects the airport may have for the land where the hangar is located. Airports may change rules and land use, which could impact your lease. Understanding the airport's plans can help you anticipate any potential disruptions or changes to your lease agreement. Overall, owning a hangar can provide benefits, but it is important to carefully consider all aspects of the lease and financial commitments before making a decision.
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The hangar may revert to the airport owner after the lease ends
While it is possible to buy a hangar, the land it occupies is typically owned by the airport owner. This means that when you purchase a hangar, you are usually only buying the structure and not the land it sits on. Airports often lease the land to individuals or businesses for a set period, after which the hangar and land revert to the airport owner. This lease period can vary but typically ranges from 10 to 20 years, with the option for one or two 5 to 10-year extensions.
It is important to carefully review the terms of the lease before purchasing a hangar. In some cases, the airport may include a provision in the lease that allows them to terminate the agreement and reclaim the hangar if certain conditions are met. For example, if the airport owner decides to use the land for another purpose or if the city enforces a clause to take ownership after a certain number of years. These provisions can result in hangar owners losing their investment if they are not carefully considered before purchase.
Additionally, it is worth noting that hangar owners may be subject to specific rules and restrictions regarding the use and maintenance of their hangars. Some airports prohibit certain activities, such as storing fuel or subleasing a portion of the hangar. Understanding these rules and regulations is crucial before purchasing a hangar to avoid any potential issues or conflicts.
Furthermore, when purchasing a hangar, it is essential to consider the financial implications and potential returns on investment. If you do not intend to own a plane, renting out the hangar can be a financially demanding role, requiring time and effort to act as a landlord. Therefore, carefully evaluating the financial aspects of hangar ownership is crucial before making a decision.
Overall, while buying an airport hangar is possible, it is important to carefully review the lease terms, understand the rules and restrictions, and consider the financial implications to make an informed decision. The hangar may revert to the airport owner after the lease ends, so prospective buyers should be aware of this possibility and the potential impact on their investment.
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You can buy land adjacent to private airports and execute an access agreement to use the ramp and runway
While it is possible to buy a hangar, the land it occupies is typically owned by the airport owner. This means that even if you build the hangar yourself, it may become airport property after a certain period, usually between 10 and 20 years. This is why it is common to lease the land from the airport, often with the option to extend the lease. However, this lease agreement means that the hangar reverts to the airport owner after 30 to 50 years.
An alternative option is to buy land adjacent to a private airport. This option provides more control and permanent ownership. By executing an access agreement (TTF agreement) with the airport, you can use the ramp and runway. This agreement allows you to build your own hangar and pay taxes on the hangar and the land.
It is important to carefully review all documents, including any ground or master lease, as airport authorities can change rules and land use. Prospective hangar owners should also be aware of any planned projects for the land to avoid unexpected issues, such as the construction of a taxiway. Additionally, understanding the underlying ground lease and master lease is crucial, especially the terms, renewal processes, causes for termination, and any associated costs.
When considering purchasing a hangar, it is worth noting that banks may be reluctant to provide loans for buildings that do not include the land underneath. Therefore, having a plane or aircraft to store in the hangar can make the financial commitment more worthwhile.
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You can buy a hangar but the airport owner may own the land it occupies
It is possible to buy a hangar at an airport, but it is important to note that the airport owner typically retains ownership of the land on which the hangar is built. This has important implications for hangar owners and tenants, as the airport owner can change rules and land use, and may even evict tenants if they decide to use the land for a different purpose.
When considering purchasing a hangar, it is crucial to carefully review all relevant documents, including any ground or master lease agreements. In some cases, the airport may lease the land to a Fixed-Base Operator (FBO), who then subleases individual hangars or ground lots to tenants. These lease agreements can have significant consequences, as seen in the case of Airstar Corp. v. Keystone Aviation LLC, where the termination of the master lease also resulted in the termination of Airstar's sublease.
Typically, individuals lease the land from the airport for a period of 10 to 20 years, with possible extensions of 5 to 10 years. During this time, the lessee may build a hangar and is responsible for paying property taxes on it. However, once the lease expires, the hangar typically reverts to the airport owner, and the lessee may have no recourse. Therefore, it is essential to understand the terms of the lease, including the possibility of renewal, causes for termination, and what happens to the hangar after the lease ends.
In some cases, individuals may choose to buy land adjacent to an airport and execute an access agreement that allows them to use the airport's facilities. This option provides permanent ownership of the hangar and land, but it is less common and may not be available at all airports.
Overall, while it is possible to buy a hangar at an airport, the complexities of land ownership and lease agreements mean that prospective buyers must carefully consider their options and conduct thorough due diligence before making a purchase decision.
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Frequently asked questions
Yes, it is possible to buy a hangar at an airport. However, it is more common to lease a hangar. Many airports will lease the land for a period of time, typically 10-20 years, after which the hangar reverts to the airport owner.
It is important to carefully review all documents that could affect your rights and obligations on airport property, including any ground or master lease. You should also be aware of the rules and regulations surrounding hangar use, which may include restrictions on certain activities or the storage of non-aviation items. Other considerations include the purchase price, monthly charges, and the rental and resale markets.
Typically, you would lease the land from the airport, build the hangar, and pay property tax on it as commercial real estate. Depending on the state, you may also pay property tax on the lease payment. When the lease is up (usually after 30-50 years), the hangar reverts to the airport owner.
HangarTrader is a website that has listings of hangars for sale and for rent in most states in the US. You can also join the HangarTrader "Waiting List" to get immediate email notifications of hangars that become available in your chosen airports.
