Originally Posted by Waitingformins

This is incorrect, the building is on airport property, if PSA is not out of pocket on the construction cost then the cost is built in their new lease.

It is very common for airports to fund capital projects for their tenants, and in turn make up the investment in new lease rates.

There is no free lunch for PSA. They have a financial obligation to the new lease.
The airport can sell bonds which are free from federal tax allowing cheaper interest for the project. Also generally airports don't pay local property tax, whereas if PSA owned the project they would be responsible for any local property taxes.