The two largest sources of income for community airports and FBO’s (fixed based operations) are fuel sales and T-hangar rentals. A great deal of information has been written and discussed about how to maximize fuel sales, but there is very little information about T-hangar rent. For all other forms of real estate such as, industrial, office, apartments, and retail, there is a plethora of information about competitive rents, vacancy rates, and expenses. So much data has been collected and analyzed on these property types there are indexes available to make sure that your property is operating within the norm of rent and expenses for the industry. None of this data is available for the second largest income stream of community airports and FBO’s, aircraft T-hangars.
Urban Economics, a Florida based real estate economics firm, surveyed one-third of the community airports and FBO’s in Florida, accounting for 2,526 T-hangars, to find out what the rent differences are between state regions, vacancy, hangar demand and to establish a baseline that can be revisited next year to see what the trend in hangar rent and hangar demand has been. The surveyed airports are broken down by their location within the CFASPP region (Continuing Florida Aviation System Planning Process area). The two most common hangar sizes were surveyed—standard and medium size hangars. Following are the average standard and medium hangar rents per state region.
Florida Region Average T-Hangar Rent
Standard T-hangar rent in Florida varies dramatically amongst the nine regions. It is not a surprise that standard hangar rent in South Florida of $593 per month far exceeds rent for a standard hangar anywhere else in Florida. South Florida benefits from the two primary factors that drive hangar rent—high population density and high household income. Central Florida on the other hand is the most inexpensive area for a T-hangar, with average standard hangar rent of $199 per month.
The second most expensive areas for standard hangar rent is on the Treasure Coast and West Florida with average standard hangar rent of $379 per month and $337 per month, respectively. Based on the statewide survey, medium size hangars typically rent for 25 to 35% more than the standard hangars.
It probably does not come as a surprise, but general aviation hangars are in high demand. Sixty-two percent of the community airports and FBO’s surveyed responded that they had a wait list for hangars. Commonly, the wait list length is between thirty and fifty prospective tenants, with a turnover rate of two to three units per year. This could indicate an average of a ten-year wait for a hangar. The high occupancy rate, long wait lists, and slow turnover would indicate surplus demand for T-hangars. If any other real estate product had such high occupancy and a wait list there would be a building boom of space.