Ground leases and airport authority agreements
Behind almost every hangar purchase is a lease you do not sign at the closing table but absolutely need to understand: the ground lease with the airport authority. It is the reason 'owning a hangar' rarely means owning the land, and its terms shape the value and future of what you buy. Here is how these agreements work.
At most airports, the land is owned by the airport authority and leased to hangar owners under a ground lease. You own the hangar structure; the authority owns the ground and leases it to you for a defined term, with conditions on use, maintenance and access. Key terms include the length of the lease, renewal options, the rent and how it escalates, and what happens at the end, often reversion, where ownership of the structure passes to the authority when the lease expires. The remaining term is critical: a hangar on a lease with few years left is worth far less than the same hangar with a long term, because your ownership is tied to the ground lease beneath it.
Why the land is leased, not owned
| Part | Who controls it | What it means |
|---|---|---|
| Airport land | Airport authority or sponsor | They generally lease ground to tenants rather than sell it. |
| Hangar structure | Hangar buyer | When you buy a hangar, you are buying the structure. |
| Ground beneath it | Ground lease | You take an assignment of, or enter, a ground lease for the land under the hangar. |
The key terms
- 1
Term
How many years the ground lease runs.
- 2
Renewal
Whether there are renewal options and on what basis.
- 3
Rent and escalation
The ground rent and how it increases over time.
- 4
Use and maintenance conditions
What the authority requires of you.
- 5
Reversion
What happens to the structure at lease end, often it reverts to the authority.
What the authority controls
- Use of the hangar.
- Insurance requirements.
- Maintenance standards.
- Subleasing.
- Access and security on the field.
Airports, and the land they sit on, are typically controlled by an airport authority or sponsor, and they generally lease ground to tenants rather than sell it. So when you buy a hangar, you are buying the structure and taking an assignment of, or entering, a ground lease for the land under it. This is standard, not a red flag, but it means your ownership of the hangar is inseparable from the ground lease that supports it.
These are part of the deal and worth reading before you commit. GFTS Hangars operates at Immokalee in Southwest Florida and can explain how the ground lease and airport arrangements work for a purchase, see hangar condominium ownership explained and buying versus renting a hangar.
Frequently Asked Questions
-
Do you own the land under a hangar?
Usually not. At most airports the land is owned by the airport authority and leased to hangar owners under a ground lease. You own the hangar structure and lease the ground beneath it for a defined term, subject to the authority's conditions. -
What is reversion on a hangar ground lease?
Reversion means that at the end of the ground lease, ownership of the hangar structure can pass to the airport authority. It is why the remaining lease term matters so much to value, a hangar on a short remaining lease may revert to the authority when it expires. -
Why does the remaining ground lease term matter?
Because the hangar and the ground lease are inseparable. A hangar on a long remaining lease holds its value and future; the same hangar on a short remaining lease is worth much less, since reversion may transfer the structure to the authority at lease end. Buyers and lenders scrutinize it closely.
Hangar space in Southwest Florida
GFTS Hangars offers aircraft hangar sales, rental and storage at Immokalee in Southwest Florida, an inland location away from the coastal salt air that drives corrosion, with hurricane-built structures. Talk to us about buying, leasing or storing an aircraft, and we will walk you through the options for your aircraft and your budget.
gftshangars.com·sales·rental·storage·Southwest Florida
