Horizon currently leases approximately 26,000 sf in the PDX Cargo Center, in support of its passenger operations and Alaska Airline's cargo operations. It leases 12,380 of space for storage and processing of in-flight commissary items and ground service equipment repair operations at a rate of $14.47 per sf per year. Additionally, is leases 13,550 sf for cargo operations in support of Alaska Airlines, which includes packaging and handling of freight at a rate of $11.68 per square foot per year.

Under the new agreement, the first lease will increase to 18,460 sf, the second lease will remain the same and the rate on both leases will drop to $8 per sf per year. In explaining the 40% drop in the rental rate, Aviation Leasing manager Ken Anderton tells GlobeSt.com that the building was developed specifically for small passenger planes to load non-passenger cargo and that market has declined dramatically, first due to the rise in all-cargo carriers like Fed Ex and second due to heightened security requirements for passenger planes since 9-11. As a result, vacancy at the cargo center is up to 50%.

As well, Anderton says one of Horizon's leases was on month-to-month status, the other was set to expire in 13 months and current market conditions for both on- and off-airport warehousing facilities have declined. "These new (five-year) leases will secure longer guaranteed revenue to the Port, in the amount of $730,000 over the next five years, versus losing the revenue."