San Francisco International Airport (SFO) has made a Request for Proposals (RFP) for the Terminal 3 Specialty Retail Stores Lease, comprised of two retail locations totalling over 2,000sq ft.

 

The lease, intended to offer the nonexclusive sale of merchandise, across two locations, spans approximately 2,196sq ft in post-security Terminal 3. DFS is currently the sole duty free operator at SFO and the Master Concessionaire at SFO’s International Terminal.

 

The new lease term is five years with a single two-year option to extend [the decision will be made at the Airport Commission’s discretion]. The minimum acceptable proposal amount, which will also be the successful bidder’s minimum annual guarantee (MAG) for the first year of the Lease, is $150,000.

 

Annual Rent will be the higher of the MAG or the sum of the percentage rent structured as follows: 12% of Gross Revenues achieved up to $500,000.00; plus, 14% of gross revenues achieved from $500,000.01 up to and including $1,000,000.00; plus 16% of gross revenues achieved over $1,000,000.00.

 

As reported, DFS Group unveiled its third major US airport concession upgrade at San Francisco International Airport in early September. Today, more than half of the revenue generated from DFS’s SFO concessions comes from Asian visitors.

 

President and CEO of the San Francisco Travel Association (SFTA) Joe D’Alessandro praised the completion of the DFS renovation. He said: “Tourism remains a vitally important contributor to San Francisco’s overall growth and development, welcoming nearly 17 million visitors who spent a record-breaking $9.38 billion last year.

 

According to John L. Martin, Director of San Francisco International Airport the city attracts nearly 17m visitors a year and has been named the number one city to visit in the US some 19 times by leading international media giant, Condé Nast.

 

The San Francisco Tourism Association (SFTA) added that there were approximately 400,000 more visitors to the city in 2013, a year-on-year visitor increase of 2.4%. Asia represents the second largest overseas visitor market to San Francisco and is said to be growing rapidly.

 

Following the RFP announcement, SFO says it will stage an ‘informational conference’ on Wednesday, October 22, 2014, at 10am at the Terminal 2 Partnering Room, Room 2.20, at San Francisco International Airport. At this time SFO will discuss desired concept, minimum qualification requirements, address any questions relating to this lease and receive comments from participants.

 

Additional information and related documents may be obtained on-line at http://www.flysfo.com/business-at-sfo/doing-business-sfo.

 

For a hard copy of the RFB document or for additional information about this concession opportunity, contact Trevor Brumm at Revenue Development and Management, at (650) 821-4500.