How States Are Getting Hangar Development Right

As aerospace, unmanned aircraft systems (UAS) and defense sectors grow across the country, hangar access is quickly becoming a prerequisite for regional competitiveness. After all, hangars do more than store aircraft; they anchor aerospace ecosystems, enable advanced research and testing, support defense readiness and are central to workforce development in those sectors.

For Mississippi to compete with other regions attracting high-profile aerospace and defense interest, proactive hangar investment must play a role in our strategy. It’s the hub from which aerospace activity seeds, grows and expands from. There’s no ball game without it.

But like with many goals, realizing the full development of hangar infrastructure can either be done the difficult way or it can be done using valuable insights from the success stories of other states. Let’s take a look at hangar development trends across the U.S. to see where opportunities lie to grow faster and smarter aviation bases.

Private Risk. Public Opportunity.

Unlike typical commercial real estate, hangars exclusively serve as aviation infrastructure. Not only do they enable flight operations, aircraft maintenance and modification, but they can also enhance specialized training and defense readiness for regions with military partnerships. These functions often require an ecosystem of skilled professionals, tailored resources, and industry-specific logistics. But they also tend to create jobs and secondary economic activity, especially around airports.

So why do so many private developers shy away from building hangars?

Well, while there are many factors that go into decision-making, the common consensus is financial: It can often take a decade or more to recoup construction costs through rent or lease revenue. For aviation and defense partners whose projects tend to evolve and shift rapidly from one month to the next, this downside makes hangars an unattractive investment, even as demand for space tightens.

But that doesn’t mean hangars are any less viable. Their investment value just shifts to those who have the ability to lock in for the long term: public economic developers. And it makes sense.

Economic development authorities are committed to the long game for their regions. They are built for the ebb and flow of incoming and outgoing business. And as a result, they are increasingly taking the lead in hangar development across the country, de-risking the market and improving return prospects for private tenants.

Why Waiting for Private Development Isn’t Enough

Relying solely on private developers to meet hangar demand has proven to be a slow and uncertain strategy. Even when land is available, hangar construction often carries long payback periods and higher perceived risk, making it difficult to attract private investment at the scale or speed companies need. The result is a familiar pattern: aircraft operators, aerospace firms, and mission partners look elsewhere, and economic opportunity quietly taxis to a neighboring facility with space ready to go.

Frustration from this has surfaced at the state level as well. In a recent letter to the Lieutenant Governor, the Mississippi Development Authority raised concerns about Gulf Coast Restoration Fund investments being steered toward projects that fall outside true industrial development. Hangar development was specifically cited as an example of infrastructure that, while essential to long-term economic growth, is often overlooked or misunderstood when funding decisions prioritize short-term or non-industrial outcomes.

That perspective is also echoed in regional planning efforts. The Mississippi Gulf Coast Strategic Plan developed for the Gulf Coast Business Council emphasizes the importance of infrastructure that directly supports high-value industries, including aerospace, defense, and advanced manufacturing. Their plan underscores that enabling assets like hangars are not speculative amenities, but foundational tools that allow airports to compete, attract private capital, and support mission-critical operations.

Without proactive public investment in this kind of enabling infrastructure, airports risk becoming bottlenecks rather than launchpads. Regions that fail to plan ahead may find themselves unable to support emerging aviation technologies, military and defense missions, or the next generation of aerospace employers, not because demand isn’t there, but because the doors quite literally aren’t open.

Lessons Learned from Our Neighbors

1. Public Ownership, Private Use

One emerging trend is the development of publicly owned hangars or airport infrastructure that is leased long-term to private operators. By structuring a public-private partnership in this way, counties can protect the public’s investment while giving incoming companies the stability they need to make long-term plans in the state.

For example, at Northwest Alabama Regional Airport, the local economic development authority built a spec hangar that can be leased or purchased by aviation businesses, putting move-in-ready infrastructure in place to attract jobs and economic impact. 

Similarly, Louisiana airports have received federal Infrastructure Investment and Jobs Act (IIJA) funding to support the construction of airport hangars that will generate revenue via private leasing and improve economic sustainability. Under this program, several hangars (including an 8,400-square-foot facility for aircraft storage) are receiving funding to increase capacity and generate airport revenue.

Meanwhile, in Tennessee, the 134th Air Refueling Wing opened a $31 million hangar at Chattanooga Airport to support future opportunities, including infrastructure needed for next-generation tanker aircraft. This model of public investment directly enables defense missions and will provide years of utility to both public and private defense contractors.

2. Design for Flexibility

Hangars built for a single aircraft type or use can quickly become obsolete as industry needs evolve. That’s why successful states emphasize multi-purpose hangar design that can accommodate a wide range of aircraft, operations and training.

In Alabama, a recent $32.7 million ground-up hangar development at Pryor Field was designed to support Maintenance, Repair, and Overhaul (MRO) operations for both commercial and military aircraft with capacity to host aircraft with wingspans over 130 feet. The facility illustrates how flexible, future-ready hangar design can support both defense and commercial sector needs, all while increasing its value as a publicly owned asset. 

This doubles down on the investments made in 2024, when $2 million in federal grants were allocated to the development of aviation jobs and opportunities. Those funds covered the expansion of hangar space at the Guntersville airport and the construction of a new hangar and classroom at Cullman Regional Airport.

In Chattanooga, West Star Aviation is expanding its operations with a massive new hangar that includes 40,000 square feet of maintenance space with 15,600 square feet of attached office and storage space. The project is powered financially and operationally through Tennessee Department of Economic and Community Development, the City of Chattanooga, Hamilton County and the TVA Economic Development Group. The expansion also includes facility improvements that will help support a wider range of aircraft services for the region.

For Arkansas, upgrades are on the horizon. The Arkansas Legislative Council recently approved a $16.7 million investment for Texarkana Regional Airport improvements, including infrastructure that supports hangars and aviation operations, reinforcing how broader airport upgrades enable flexible hangar use and regional growth.

3. Early Design & Permitting

It shouldn’t come as a surprise that states investing early in design, permitting and site readiness significantly improve their ability to compete for federal and private sector interest. After all, “shovel-ready” sites help reduce risk for transplants, accelerate development timelines and better position municipalities to respond to tenant needs as the project unfolds.

For example, the Premium Aerospace Center in Oklahoma announced a $65 million expansion at the Oklahoma Air & Space Port, building on long-range airport planning and hangar development strategies that position the region to support aerospace growth and attract new business.

Similarly, other airport authorities in the Southeast and Midwest are making pre-construction planning a priority to enable quicker buildouts that accommodate business aircraft, defense platforms and MRO operations. These efforts underscore how early investment in permitting and design can unlock later funding and job creation.

Our Blueprint for Success

Our track record of strategic investment is setting the stage for real opportunities in the aviation, aerospace and defense sectors. Just in the last few years, we’ve expanded apron areas, added taxi lanes and designed an adjacent technology park near Stennis International Airport that will attract new partners for years to come. To make the most of these upgrades, we know that creating additional hangar space is essential.

But we also know proactive execution is just one facet of competitive development. Public leadership and experience navigating pre-development tasks are also necessary; these allow us to leverage lessons from across the country and apply them locally. Efficient hangar development is a proven, repeatable economic model that supports jobs, attracts investment and enhances our competitiveness. And we’re ready to utilize it.

Invested in Mississippi’s Aviation Industry? Let’s Talk.

Strategic hangar development is essential to keeping Mississippi competitive in the Gulf Coast aerospace corridor. At Hancock County Port & Harbor Commission, we are actively advancing projects that expand aviation infrastructure, support mission-ready operations and unlock long-term growth right here in southern Mississippi.

If you’d like to learn more about current or future hangar development initiatives, funding opportunities or how public investment leads to real-world impact, connect with our team today.