May Build T Hangars at Small Airport

[dans2992]

These hangars are going for $400k+ in more urban areas..

 

[N747JB]

On the commercial real estate world, we would look at a $1.5M 10 unit project at a minimum of a 7% cap rate NNN. That would come out to a required rent of $875 / month / unit. And that's at NNN (renter pays property taxes and insurance and maintenance). You would have to add the monthly prorated cost of taxes and insurance to the base rent which would probably bring the monthly rent to at least $1,100 per month per unit.

That's why I generally stay away from investing in hangars - the market in my area wound not support rent in that range. I can build a metal commercial building off an airport in my area and easily get a 5-7 year lease at a 8+ percent cap rate NNN.

That's why hangars are not typically built by commercial developers.

A builder/developer at my airport, KCCO, Newnan Ga, has been building T-hangars and box hangars for a couple years. But, as you stated it’s not a good investment. They are selling the hangars prior to construction. I believe the basic T-hangars are around $100K, plus monthly ground lease and yearly county taxes. They have built approximately 20 T-hangars and several bigger box hangars, but they aren’t renting any of them.
I’m having a 48X50 built this spring, not cheap, but there aren’t many options for rentals. ‍

 

[bonefishpete]

K

A builder/developer at my airport, KCCO, Newnan Ga, has been building T-hangars and box hangars for a couple years. But, as you stated it’s not a good investment. They are selling the hangars prior to construction. I believe the basic T-hangars are around $100K, plus monthly ground lease and yearly county taxes. They have built approximately 20 T-hangars and several bigger box hangars, but they aren’t renting any of them.
I’m having a 48X50 built this spring, not cheap, but there aren’t many options for rentals. ‍

How many square feet in a T Hanger? Single engine light twin size. Cost per square foot including apron and such.

 

[N747JB]

K

How many square feet in a T Hanger? Single engine light twin size. Cost per square foot including apron and such.

I don’t have the dimensions on the T’s, mine is 48X50 including a bathroom and office, insulated with electric door. $350,000 including all apron work. I’ll probably add some type of heat for really cold weather.