Part 108: The Drone Directive That Could Reshape Real Estate

The Federal Aviation Administration’s proposed rule for 14 C.F.R. Part 108[1] marks a turning point for how drones interact with the built environment. By authorizing Beyond Visual Line of Sight (BVLOS) operations under a streamlined, nationwide framework, the FAA aims to expand what’s possible for developers, investors, property managers and PropTech innovators alike. Part 108 could accelerate the adoption and allow for widespread, autonomous drone operations nationwide and across numerous industries. This alert explains what’s changing, how it builds on existing Part 107 rules, and why early adopters in real estate stand to gain a powerful operational edge.

Background: What Is FAA Part 107?

To appreciate the significance of the proposed Part 108, it helps to understand the existing regulatory foundation under Part 107, which governs commercial small-drone operations (for drones weighing under 55 pounds).

• Visual Line of Sight (VLOS): Pilots must maintain direct, unaided visual contact with their drone at all times.
• Operational Limits: Flights are generally confined to below 400 feet above ground level (AGL) and not over people or moving vehicles without a waiver.
• Certification and Training: Operators must hold a Remote Pilot Certificate, demonstrating aeronautical and safety knowledge.
• Airspace Authorization: Operations in controlled airspace require real-time FAA clearance through the LAANC system.
• Waivers and Exceptions: To conduct advanced operations (e,g., over-people, BVLOS), operators must apply for case-by-case FAA waivers.
• Safety & Compliance: Mandatory pre-flight checks, accident reporting within 10 days, and FAA registration/remote-ID requirements.

While Part 107 enabled the first wave of commercial drone use, its visual-line-of-sight limitations have prevented large-scale deployment of drones for expansive or repetitive real-estate tasks.[2]

The Transportation Security Administration (TSA) has also proposed revisions to the regulations to ensure that the decision to regulate these UAS operations under Part 108 does not inadvertently create a security gap under its regulations and would continue to ensure the security of the national airspace by imposing appropriate security requirements by the TSAM, primarily related to package delivery.

What Is BVLOS and Why It Matters

“BVLOS” (Beyond Visual Line of Sight) refers to drone operations where the pilot cannot physically see the aircraft during flight and may use an aid such as FPV goggles (First Person View headsets) or drone video goggles.  Under current Part 107, such operations require special FAA waivers.

The proposed Part 108 would, for the first time, create a formal authorization process for qualified BVLOS operations without individual waivers, allowing pilots to operate drones across greater distances and complex environments under standardized safety and technology requirements.

It is the FAA’s anticipation that Part 108, if implemented, will allow operators to conduct a variety of operations, including package delivery, agriculture, aerial surveying, civic interest (to include wildfire recovery, wildlife conservation and public safety), flight training, demonstration, flight testing and recreation.

For real estate and construction professionals, this is transformative.

BVLOS flights enable long-range inspection of large campuses, portfolios and infrastructure corridors. Additionally, automated data-collection routes for mapping, surveying and digital-twin updates will create efficiencies for owners and operators with safer and less labor-intensive site monitoring and progress tracking.

Key Features of the Proposed Part 108 Rule

• FAA would not require airman certificates but would require each operator – both permitted and certificated – to have an operations supervisor responsible for the overall safety of the operation, subject to qualified flight coordinators, who are individuals responsible for monitoring and, if necessary, intervening in an operation to ensure safe conditions.
• Establishes a standardized, scalable framework for BVLOS operations, replacing the ad-hoc waiver system.
• Introduces new operator certificates based on performance and safety assurance rather than traditional aircraft-type certification.
• Creates a new category—Automated Data Service Providers (ADSPs) to manage real-time traffic, safety and deconfliction for drone fleets; allowing for autonomous drone operations nationwide and across numerous industries.
• Incorporates detect-and-avoid, remote-identification and cybersecurity standards to safeguard operations near people and property.
• Seeks to reduce costs and improve predictability for businesses deploying drones commercially.

Benefits for the Real Estate Industry

• Enhanced Asset Inspection & Maintenance: BVLOS operations permit routine, efficient inspection of high-rise façades, roofs, HVAC systems and construction sites all without repositioning crews or costly scaffolding. This can materially reduce maintenance budgets and improve compliance with local façade-inspection laws.
• Improved Marketing & Due Diligence: Developers and brokers gain access to high-resolution aerial imagery, 3D mapping, and thermal/LiDAR data collection for property marketing, site evaluation and investor reporting.
• Operational Safety & Risk Mitigation: A clear regulatory regime lessens exposure for owners contracting with drone vendors, aligns insurance practices and standardizes liability allocation especially for occupied properties.
• Portfolio-Level Efficiency: REITs, institutional investors and large property managers can implement drone-based asset-monitoring at scale, turning one-time visual surveys into continuous data streams.
• Innovation & PropTech Integration: By normalizing BVLOS, Part 108 accelerates integration of drones into digital-twin modeling, ESG reporting and automated facility management.
• Logistics and Last-Mile Delivery Companies: The proposed Part 108 framework also represents a major advancement for logistics, warehousing, and last-mile delivery companies that rely on efficient movement of goods across short and medium distances. This would allow qualified operators to deploy autonomous or remotely piloted drone fleets capable of carrying packages, medical supplies or critical components directly from distribution hubs to customers or job sites. For developers and logistics park owners, the new rule could also accelerate integration of drone-launch and landing infrastructure into industrial campuses, rooftops and mixed-use assets, positioning properties to serve the emerging aerial-delivery economy.

Key Considerations & Risk Factors

There are risks to proceeding with BVLOS operations that include vendor due-diligence, contractual risk allocation, and proof of FAA compliance. Careful management of privacy, data-ownership and cybersecurity obligations, along with updates to insurance policies and service agreements to include UAV-related risks are to be considered.

On June 6, 2025, President Donald J. Trump signed two Executive Orders, Restoring American Airspace Sovereignty and Unleashing American Drone Dominance, both aimed at reinforcing American sovereignty over its airspace and establishing U.S. dominance in the drone and unmanned aircraft systems sector. While these directives were crafted in the name of national defense, they have the potential to fundamentally shift longstanding property doctrines, opening new frontiers in real estate monetization.[3]

Action Items for Real-Estate Stakeholders

• Review existing vendor contracts for drone services and insert Part 108-compliance language.
• Coordinate with insurance brokers to confirm UAV liability coverage.
• Integrate drone operations into preventive-maintenance and asset-management plans.
• Begin pilot programs for BVLOS inspections on large or complex sites.
• Stay informed on FAA comment periods and final-rule timelines.

If enacted, the FAA’s proposed Part 108 represents a pivotal shift for the real-estate sector. By expanding lawful drone operations beyond visual line of sight, it creates a scalable foundation for safer, more efficient and more data-driven property management.