PACCAR Lease Termination
Item No. 8d_supp
Meeting Date: February 24, 2026
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Actions Requested
Requesting Commission authorization for the Executive Director to execute a
Lease Termination Agreement for the PACCAR Lease Agreement at SEA to
facilitate their transition to Boeing Field and support SEA’s airport capital
development program and operations.
Lease Overview
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PACCAR has a substantial footprint on Southend of the airfield
that can provide a critical relief valve for airport operations and
capital development needs
PACCAR was aware of the potential displacement due to the
Port’s long-term vison and secured a new lease at BFI
As part of this lease termination PACCAR will be required to
make tenant improvements to the building, remove the existing
AFFF (PFAS-based) fire suppression system, and remove the
aircraft fueling system.
In the interim, the facility will be used to support SEA’s growing
operation by providing real estate to support multiple Port
functions. The anticipated future and long-term use of this site
will support future development at SEA.
Lease Termination Details
PACCAR Lease Termination
Tenant Name
PACCAR Inc.
Original Expiration
May 31
st
, 2031
Environmental Indemnification
The existing lease agreement indemnification will survive lease
termination in the event the Port discovers environmental
contamination during the demolition of the building
Monthly Rental Rate
$37,360.36
Tenant Improvement
Requirements
Removal of the PFAS based fire suppression system and components in
continuous contact with PFAS
Installation of water-based fire suppression system at a lower rating
converting the hanger into a warehouse
Removal of underground Aircraft Fueling system to include but not
limited to underground fuel tank, piping, fixtures, and any
environmental contamination discovered
Potential Uses:
Support of Port Capital Projects
Aviation Maintenance space
Fire Department Storage
Operational support space
New Termination Date
The end of the month following Tenant completion and Port approval of
the Tenant Improvement Requirements listed above
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