Long Beach Lands a $60 Million Sky Harbour Deal: How a Private Jet Campus Could Transform the City’s Economy

by Rick Lee

A New Chapter for Long Beach Airport

Long Beach is officially taking flight with a massive sixty million dollar investment that is expected to reshape its local economy for decades. The Long Beach City Council has approved a fifty-year ground lease with Sky Harbour, a New York-based aviation company, to develop a state-of-the-art private jet campus at Long Beach Airport.

The agreement allows Sky Harbour to lease seventeen acres of city-owned property on the west side of the airport to build five private hangars for ultra-long-range business jets. Construction will occur in phases through spring 2028, and the city will collect steadily increasing rent from the project—starting at roughly $29,778 per month and eventually rising to $78,166 per month, with three percent annual escalations.

Inside the Sky Harbour Vision

The Sky Harbour campus will not be your average airport facility. Each hangar, at approximately 43,000 square feet, will feature premium office space, private lounges, EV charging stations, and aircraft storage designed for high-end business travel. A new open-air restaurant open to the public will bring a community component to the site, creating a unique mix of aviation access and local lifestyle.

According to Eric Stolpman, Senior Vice President at Sky Harbour, the development is designed to fill a nationwide shortage of hangar space for private aircraft. Because of limited capacity in Southern California, many jet owners base their planes in neighboring states such as Utah, Arizona, and Nevada, costing local cities valuable tax dollars and service revenue. Sky Harbour aims to change that by bringing these aircraft—and their economic impact—back home to Long Beach.

The Economic Impact for Long Beach

This project represents more than luxury aviation; it is a clear signal that Long Beach is positioning itself as a major business aviation hub for Southern California. The economic benefits extend well beyond the airport itself.

Job creation: Construction and long-term maintenance will generate hundreds of skilled and professional jobs.
Tax revenue: The city gains steady rental income and additional revenue from new aviation activity.
Local investment: By keeping high-net-worth jet owners in California, Long Beach strengthens its local business ecosystem and hospitality sector.

City leaders have praised the agreement as a strategic use of land that has long been underutilized. Councilmember Megan Kerr noted that the site had previously been used for events like the annual Festival of Flight and for vehicle storage by Mercedes-Benz but had not reached its full potential until now.

A Broader Development Strategy Taking Shape

The Sky Harbour project is part of a larger effort by the City of Long Beach to modernize and monetize its airport properties. According to bid documents, the city also plans to sell another parcel of airport land near Lakewood Boulevard and Spring Street within the next two to three years. This ongoing initiative shows that the city is serious about transforming surplus land into long-term economic drivers.

The airport itself is already a cornerstone of the city’s financial ecosystem, generating more than $63 million in annual operating revenue while serving approximately 3.7 million commercial passengers through carriers such as Southwest, Hawaiian Airlines, UPS, and Delta. With the addition of Sky Harbour, the airport could see even more diversification in its income streams, strengthening its financial foundation for the future.

Why This Matters for Real Estate and Investment

Large-scale infrastructure and development projects often have ripple effects throughout the local real estate market. The creation of a luxury aviation hub can attract high-net-worth individuals, increase demand for nearby commercial space, and enhance the city’s profile among investors seeking stable, high-growth markets.

For homeowners and developers, the Sky Harbour deal reinforces Long Beach’s momentum as a city of innovation and opportunity. Its proximity to Los Angeles and Orange County makes it a central player in Southern California’s expanding business corridor.

The Takeaway

The Sky Harbour deal is more than just an airport expansion—it is a symbol of Long Beach’s evolution. The city is leveraging its assets, attracting high-value industries, and setting a course for sustainable economic growth that benefits residents and businesses alike.

As projects like this continue to unfold, Long Beach is not only preparing for takeoff—it is building a lasting runway for the future.