Staff from smaller airports typically lack specialized expertise in the negotiation and development of airport property or the resources to hire consultants. It’s not uncommon for public works managers or other managers within a city or municipality to have responsibility for managing an airport even though they may lack experience in doing so. This may not be of concern while managing the day-to-day operations, but it becomes important when considering development of property, when approached by a developer (not in response to a solicitation), or when it’s time to re-evaluate current leases. Reaching out to airport peers can be of assistance, but the localized nature of determining market value for airport property development may still leave the airport manager with a lack of appropriate information.
Airport market value evaluation takes into account many factors including airfield and facility characteristics. There is little guidance for airport managers from smaller airports on how to use facility characteristics and other factors to estimate market value for leases at their airports.
The objective of this project is to develop a guidebook to help airport managers from small airports estimate the market value for leases by identifying the types of airport characteristics and factors that are considered.
The guidebook should include at a minimum:
• Glossary of terms.
• Requirements for aeronautical vs non-aeronautical lease rates.
• How to identify comparable airport markets.
• Techniques and methods for developing a process for consummating contracts and agreements with lessees.
• Best practices for negotiating with prospective or current lessees.
• Best practices for re-evaluating current leases.