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Falcon Field opens three hangar projects, plans four more
Publication: Phoenix Business Journal ; Date: October 31, 2008
Three hangar projects opened recently at Falcon Field Airport in Mesa and four more are in the works, despite delays caused by the economic slide and difficulty obtaining city permits.
That's good news for businesses and individuals on waiting lists, which stretch up to 10 years. The airport had storage for 413 planes, and the three recent projects added 70 spaces. Details have not been announced for the four being planned.
The recent wave of construction was spurred by a 2005 decision by the city of Mesa to switch its business model to the private sector with land now leased to developers.
Despite project delays caused by the economy, Falcon Field Executive Director Corinne Nystrom said she is optimistic.
"The projects are in various stages of the permitting process and are moving forward with their plans to develop," she said. "They have not given us any indication that they are backing down."
The three companies with completed hangars are Falcon 7 LLC, Reilly Aviation LLC and Falcon Jet Center.
Alan House, a partner in Falcon 7, said economic conditions have created challenges for developers.
"People are hitting tough times because of financing," he said.
Nystrom and House said finding capital and obtaining city permits can be difficult for companies with little experience.
"It's a long-term process to get through entitlement, planning and zoning," House said. "So far, we've been lucky."
Falcon 7 completed its phase one project, which includes 17 corporate hangars priced at about $500,000 each and geared toward executives who use their aircraft for essential business purposes. Falcon 7 is planning 54 additional hangars and 60,000 square feet of office space for clients.
House said his high-end clientele has not diminished, even with the economic pinch. About 80 percent of his completed units have been leased or bought.
Reilly Aviation recently completed 41 hangars at Falcon Field.
"Hangar space is at a premium in the Phoenix market," said Joe Reilly, co-owner and operator of the company.
Planning for the Reilly Aviation project began in 2006 when he and his wife, Cindy, a former city planner, started the company.
Its units include office space and are wired for phone, Internet and security. They are engineered to accommodate office lofts or storage space, he said.
For Reilly, a land-development specialist, Mesa was the perfect city for his first venture into general aviation. "I've never had a better development exper-ience," he said.
A hangar at Reilly Aviation can be purchased with 20 percent down or leased for 60 cents per square foot per month. Reilly would not disclose unit prices.
Meanwhile, Falcon Jet Center completed one 35,000-square-foot hangar, which can accommodate up to 12 twin-engine jets.
Falcon Jet Center takes a different approach: One large hangar offers individual slots for purchase, rather than smaller hangars being sold to private owners.
Other companies working on projects at Falcon Field are Pacific West Aviation, Falcon Office Center, Exec-Jet Holdings, Phoenix Heliservices and General Aviation Services. Representatives of these companies were not available for comment.
Lois Yates, executive director of Falcon Field Area Alliance, said the waiting list for hangar space is between seven and 10 years, depending on the type of aircraft.
Although Falcon Field is growing, its management is not trying to compete with the Scottsdale Airpark or Phoenix-Mesa Gateway, Yates said. "It knows its niche."
The economy has slowed airport operations recently, but Falcon and other general-aviation facilities expect to see an increase in private and corporate aviation in the next decade.
Falcon Field had 314,129 takeoffs and landings in 2007, making it the fourth-busiest U.S. general aviation facility. The Federal Aviation Administration estimates it will see an increase of about 15,000 takeoffs and landings by the end of 2008.
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