San Francisco Airport commences RFPs for clutch of 12-year retail leases

By Luke Barras-hill |

Harvey-Milk-retail

Harvey Milk Terminal 1 is undergoing a $2.4bn transformation.

The San Francisco International Airport Commission has issued two separate request for proposals covering four retail concessions at Terminal 2 and Harvey Milk Terminal 1.

All four concession leases at San Francisco Airport (SFO) cover a period of 12 years each.

RFP 1 includes ‘Traveler’s Retreat’, with rent the higher of a $135,000 minimum annual guarantee (MAG) or 12% of gross revenues for service, plus 14% of gross revenues for retail merchandise.

APPAREL, BOOKS AND SPECIALITY RETAIL

A retail concession lease under the category ‘apparel’ is also up for grabs.

Rent is the higher of a $365,000 MAG or the following: 12% of gross revenues up to and including $1,000,000; plus 14% of gross revenues from $1,000,000.01 up to and including $2,000,000; plus 16% of gross revenues over $2,000,000.

A final lease in RFP 1 concerns a ‘Bookstore’, with rent the higher of a $230,000 MAG or the following: 80% of gross revenues up to and including $2,000,000; plus 10% of gross revenues over $2,000,000.

Meanwhile, a single ‘Speciality Retail Stores’ lease at Harvey Milk Terminal 1 and Terminal 2 Market is available in RFP 2.

Rent is the higher of a $1,000,000 MAG or the following: 12% of Gross Revenues up to and including $2,500,000.00; plus 14% of gross revenues from $2,500,000.01 up to and including $5,000,000.00; in addition to 16% of gross revenues achieved over $5,000,000.

An international conference on the new lease opportunities will be held on Thursday 3 October at 10:00am (local time) at the SFO Aviation Museum and Library.

T2-retail-street-SFO

A single speciality retail stores lease covering Harvey Milk Terminal 1 and Terminal 2 (pictured) is up for grabs.

ONGOING CONSTRUCTION

The new retail opportunities come as SFO continues its $2.4bn project to transform the Harvey Milk terminal.

Nine gates at Boarding Area B and a consolidated security checkpoint opened in July.

A further nine are due to open in March at Boarding Area B.

Construction of the terminal is split into two phases: Boarding Area B and the Harvey Milk Terminal 1 Center (T1C).

When fully completed in 2022, Harvey Milk will boast a new boarding area with improved passenger flows and access to 25 gates; a mezzanine with connections to transportation; and a spacious central concourse with an art gallery, food halls and integrated technology.

Retail concessionaires either already operating or set to feature once the project completes include InMotion, Paradies, L’Occitane, DepARTures, 7×7, NYS Collection, Mills Cargo and Skyline News & Gifts.

 

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