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Subcommittee backs five‑year Southwest Airlines cargo lease at SFO
Summary
The committee approved sending a resolution forward that would authorize a five‑year lease for Cargo Building 608 and related ramp/office space with Southwest Airlines; analysts said the guaranteed minimum rent over five years would be roughly $1.3 million, subject to annual adjustments.
The Board’s Budget and Finance Subcommittee voted to forward to the full Board a resolution authorizing a five‑year lease between Southwest Airlines and the City and County of San Francisco (acting by and through the Airport Commission) for Cargo Building 608 and related Plot 9B areas.
Airport staff explained Southwest has operated on a month‑to‑month permit and currently pays roughly $262,752 a year for its cargo operations; the proposed lease would lock in a rent structure for 14,546 square feet of cargo warehouse, office and exterior ramp space. The airport anticipates guaranteed rent totaling approximately $1,300,000 over the five‑year term, subject to annual adjustments tied to airport rates and the consumer price index.
Budget analyst Mr. Rose told the committee Southwest currently pays $262,007.52 for Building 606 under a month‑to‑month permit and said the proposed five‑year minimum rent for Building 608 would be about $1,313,761 (excluding any annual rate adjustments). A Supervisor moved approval and the committee sent the item forward without objection.
The item will appear on the March 11 Board agenda for final action.
