Is There a Nationwide Aircraft Hangar Shortage?

If there is, then two pilots at Washington State’s Columbia Gorge Regional Airport are doing something about it.

Protection From the Harsh Elements

Keeping just about any type of aircraft inside a hangar offers several key benefits that significantly enhance the longevity, safety, and overall value of an airplane or roto-wing. Perhaps one of the main advantages is protection from the harsh elements. Aircraft exposed to extreme weather conditions such as rain, snow, hail, and sun-emitted UV rays typically experience accelerated wear and tear, leading to component corrosion, fading paint, and other kinds of structural damage.

Safe and Secure When Not Airborne

A hangar provides a unique controlled environment that shields and protects an aircraft from these damaging conditions. Hangar storage also enhances an aircraft’s overall security. Modern hangars are, in most cases, equipped with advanced high-tech security systems, including CCTV cameras, alarms, and restricted access controls. This substantially reduces the risk of theft, vandalism, and unauthorized access, ensuring that a high-value asset such as an aircraft remains safe and secure when not airborne.

Ensuring an Aircraft’s Operational Flight Readiness

Another significant benefit to aircraft owners and operators is the convenience of maintenance and inspections. Hangar space makes a clean and organized workspace possible where routine maintenance, repairs, and inspections can be conducted far more efficiently. This controlled environment allows aviation technicians to work on the aircraft regardless of undesirable weather conditions outside. This leads to better and faster maintenance, which is crucial for ensuring an aircraft’s operational flight readiness, with safety always at the forefront.

The Cosmetic and Mechanical Condition of the Aircraft is Preserved

Equally important is that a quality hangar keeps an aircraft in top condition, thereby helping preserve its resale value. Aircraft that are well-protected and regularly maintained are likely to command a much higher resale value. This is because the cosmetic and mechanical condition of the aircraft is maintained, which is a critical factor for potential buyers. In addition, hangar storage ensures better operational readiness and convenience.

Very Hot Climates and Very Cold Climates

An aircraft parked inside a hangar is almost always quicker to prepare and pre-flight for a trip, as it does not need extensive pre-departure cleaning or de-icing, which are common things that must be done for aircraft that are parked outside. This means more efficient flight operations and less time spent on ground preparation. In scorching climates and frigid climates, passengers, as would be expected, are sure to appreciate a more comfortable cabin interior typical of a hanger-parked aircraft.

But Wait, is There Indeed a Hangar Shortage?

Well, sort of, as in truth, there has been somewhat of a strain on pilots, aircraft owners, and business jet owners for years. Limited hangar availability has only accelerated even more in just the last few years. Ultimately, those desiring or in need of hangar space usually end up on an excessively long waiting list. The biggest impact of this problem has been felt by those in general aviation. This is likely due to the high costs associated with the average hangar construction project and the lack of funding needed to launch new hangar projects.

Rising Construction Costs, Including Materials and Labor

Likely, the biggest constraint is that of construction costs. Some estimates suggest that the cost of taking a hangar from conception to finished product has doubled in just the past 20 years. Rising construction costs, including materials and labor, have squeezed many airports around the country, keeping new hangars from ever being built. And it’s not just the demand for new hangar space but the need to replace old, outdated, and rundown existing hangars as well. An aircraft hangar can be expected to have around 50 years of useful life, after which replacement is often recommended.

Securing Growth and Robust Leadership in the American Aviation Act

Not long ago, the U.S. House of Representatives passed the “Securing Growth and Robust Leadership in American Aviation Act,” more commonly referred to as the FAA Reauthorization Bill, which includes greater funding for airport infrastructure. The Bill prioritizes funds for smaller general aviation-type airports, which could help to substantially increase the availability of hangar space at many smaller community regional and local airports. As a note, as with all things Federal, the actual creation of new hangar space could still take a very long time as funds are slow to be released.

Columbia Gorge Regional Airport

Two pilots recently hatched a novel idea, deciding to dive into aviation real estate. Steve Jordan and Thomas Richter embarked on what is a bold hangar development project. The initial project is to be launched at Washington State’s Columbia Gorge Regional Airport, with more projects likely to follow in the future. These two entrepreneurial pilots have created what is known as Planecaveventures. The two close friends first met in Hollywood years ago, working behind the cameras in the film industry.

Lack of Space is a Real Reality

Both men knew from experience that finding hangar space in the Oregon and Washington areas of the country was rather difficult. Like so many others, they were perplexed by the endless hangar wait lists everywhere up and down the West Coast of the country. It became clear that no one was building hangars anymore. With the hangar shortage a real reality, the team decided to start the process of building their first group of hangars. They chose KDLS airport as the initial site, with more planned later in other cities.

Approved By the Airport

The pair have taken an unconventional approach to funding the project. Rather than the more traditional financing involved with aviation real estate, they searched for outside investments. The pilot team has so far had the construction of two rows of aircraft hangar structures approved by the airport. With the groundbreaking for the project set to begin this month (August 2024), the team only awaits the final approval of city and county authorities.

A Unique Niche Market

With dozens of aircraft owners already on a hangar waitlist at Columbia Gorge Regional Airport, the new hangar project, with each of 18 units measuring 42 feet wide and having a 12-foot-tall door, the new space will be extremely welcome. Even traditional non-aviation type investors are showing an interest in the project. It’s a unique niche market that requires a development team with a sound knowledge of aviation and airplanes. Steve Jordan and Thomas Richter fit the bill in this regard.

The National Shortage of Hangars

The Planecavepartners look at hangar space much like self-storage facilities. Those who rent stay a long time in most cases and are unlikely to give up the space once it has been secured. With aircraft hangars, this is even more the case due to the national shortage. This is welcome news to investors considering aviation real estate. It comes down to low vacancy and an increasingly stable revenue stream. These are pleasant concepts for any savvy investor.

A Favorable Outlook Towards the Future

Aircraft hangar space projects are a very attractive investment vehicle for investors who are seeking easy entry where they can buy a finished product that is stabilized with existing tenants, and that has a favorable outlook towards the future in terms of lease lengths, recurring rents, and low vacancies. Planecave and its founders plan to expand to other markets across the country over time, serving as many airports as the business venture can accommodate.

APN (Aviation Property Network) can help you find the perfect aircraft hangar or other aviation real estate. Call today! 720-617-3840