Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8e
ACTION ITEM
Date of Meeting
February 24, 2026
DATE : January 5, 2026
TO: Stephen P. Metruck, Executive Director
FROM: Brad Erger, Manager, Aviation Business and Property Assets
Jason Johnson, Assistant Director Airline Affairs & Aviation Properties
SUBJECT: STOC ALPA Term Lease
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute a Third Amendment to
Lease Agreement with Air Line Pilots Association (ALPA) at SeaTac Office Center (STOC) to lease
an additional 2,195 square feet of office space for a term of 99 months.
EXECUTIVE SUMMARY
ALPA has been a tenant at STOC since 2012, where they currently occupy 11,772 square feet on
the third floor of the South Tower (Suites 300 and 325). The Port has tentatively agreed to a lease
amendment to add 2,195 square feet of space in Suite 315 on the third floor for a term of 99
months, which is coterminous with the rest of their space under lease.
JUSTIFICATION
Suite 315 was recently vacated by another tenant (AARP) and is directly adjacent to existing ALPA
leased space. ALPA would be taking Suite 315 as-is and will be responsible for any tenant
improvements deemed necessary to the space, coming at no cost to the Port. Upon lease
termination, all improvements will remain with the Port, enhancing the long-term value of the
space. The lease begins at a base rent of $23.34 per square foot annually plus operating expenses,
with annual increases tied to CPI. Over the 99-month term, the inclusion of this expansion space
is projected to add a minimum of $422,000 in rent revenue to ALPA’s lease. The lease amendment
will be executed using form approved by Port Legal.
LEASE DETAILS
Effective Date
Estimated to be March 1, 2026
Rental Rate Adjustments
Monthly Base Rent will increase annually based on CPI.
Permitted Use
ALPA shall use the Premises for general office use.
Security Requirement
6 months’ base rent
COMMISSION AGENDA – Action Item No. 8e Page 2 of 3
Meeting Date: February 24, 2026
Template revised June 27, 2019 (Diversity in Contracting).
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do not lease Suite 315 to ALPA
Cost Implications: Risk losing $422,000 of rental revenue over the term
Pros:
(1) Suite 315 would remain available for other potential tenants
(2) Avoids immediate broker commission costs
Cons:
(1) Leaving Suite 315 vacant could result in prolonged downtime before securing another
tenant, leading to lost revenue and ongoing operating expenses for the unoccupied
space.
This is not the recommended alternative.
Alternative 2 – Enter into amendment with ALPA to add Suite 315 to their lease
Cost Implications: Minimum of $422,000 of rent revenue over the lease term.
Pros:
(1) The Port would be allowing an existing STOC tenant to expand under beneficial financial
terms
(2) Immediate occupancy by ALPA eliminates downtime and carrying costs for the vacant
suite
Cons:
(1) Suite 315 would be unavailable for other potential tenants
This is the recommended alternative.
FINANCIAL IMPLICATIONS
The proposed lease amendment is expected to generate at least $422,000 in rental revenue over
the 99-month term. The Port will incur a broker commission of $22,140.75 as part of this
transaction.
When factoring in the leasing commission, base rental rates, and annual CPI-based increases, the
overall financial outlook of this lease remains positive for the Port, offering long-term value
through non-aeronautical revenue.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
COMMISSION AGENDA – Action Item No. 8e Page 3 of 3
Meeting Date: February 24, 2026
Template revised June 27, 2019 (Diversity in Contracting).
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
October 22, 2024 – The Commission authorized the acquisition of STOC and the assumption
of all STOC leases.
