Guidelines for Determining Market Value & Market Rent of Airport Property

The purpose of this project was to research and document valuation methodologies for determining the market value (MV) of airport property and to develop thorough but easily understood lease or sale guidelines to serve as best practice that can be useful to airport managers and local elected officials. The research approach included both a thorough research of literature on the subject of market valuation of property, as well as consultations with aviation industry professionals and stakeholders. Researchers found that there are three established approaches to determining property value: 1) Sales comparison approach; 2) Cost approach; and 3) Income approach. Discussions with the Florida aviation community and private industry professionals revealed that the sales comparison approach is by far the most widely used approach for valuing airport property in the state. The interviewed aviation professionals also revealed that the main difficulty for them with estimating MV is finding the basis for comparison. This report presents the major factors, found by the researchers, that should be used to identify comparable aeronautical properties for the purpose of determining MV. Also, criteria of comparability for determining MV of non-aeronautical airport property are recommended. It is pointed out that MV is not a fixed boundary but is rather a benchmark that should be used as a basis for negotiation, and that, while airports should always aim to get as close as possible to MV, this may not always be possible due to market realities and other factors.

• Corporate Authors:

  University of South Florida, Tampa

  Center for Urban Transportation Research, 4202 East Fowler Avenue
  Tampa, FL  United States  33620-5375

  Florida Department of Transportation

  Research Center, 605 Suwannee Street, MS 30
  Tallahassee, FL  United States  32399-0450
• Publication Date: 2012-4

Language

• English

Media Info

• Media Type: Digital/other
• Features: References;
• Pagination: 37p

Subject/Index Terms

• TRT Terms: Airports; Best practices; Guidelines; Market value; Property values; Rent; Sales; Valuation
• Subject Areas: Administration and Management; Aviation; Economics; I10: Economics and Administration;

Filing Info

• Accession Number: 01446536
• Record Type: Publication
• Files: TRIS, ATRI, STATEDOT
• Created Date: Sep 19 2012 4:16PM