The City of San Francisco Airport Commission has formally called for Request for Proposals (RFP) for its five 7-year Specialty Retail Concession Leases.

The retail leases relate to the following merchandise: Electronics/Travel Gear (Lease 1); Local Gifts (Lease 2); Candy/Confectionery (Lease 3); Museum Store (Lease 4); and Sunglasses and Cosmetics (Lease 5).

The airport is looking for minimum annual guarantee (MAG) offers ranging from $125,000.00 to $325,000.00 for the Specialty Retail Concession Leases’ ranging from $125,000.00 to $325,000.00. [An additional F&B business carries a MAG of $250,000.00 with a term of ten years-Ed].

BID CONFERENCE ON OCTOBER 26

The base rent for these five leases also increases in the event that sales pass the following thresholds: 12% of gross revenues achieved up to and including $500,000, or 14% of gross revenues achieved from $500,000.01 up to and including $1,000,000, or 16% of gross revenues achieved over $1,000,000.

[For lease number four – the Museum store – SFO says the base rent per lease year will be the higher of the Minimum Annual Guarantee, or 10% of gross revenues-Ed].

San Francisco International Airport set a new all-time record for traffic in 2016 serving 53,106,505 passengers representing seven straight years of passenger traffic growth. SFO also posted a 10% increase in international traffic in 2016. 

As is the norm, SFO management says small, local and disadvantaged businesses are encouraged to participate and further details will be available at the bid conference due to be held on Thursday, October 26th, 2017. This will start at 10:00am at the Aviation Museum & Library in the airport’s International Terminal.

In a quick breakdown of the individual lease costs, SFO management said the proposed minimum annual guarantees for each business is as follows: Lease 1 (928sq ft) $325,000; Lease 2 (765sq ft) $200,000; Lease 3 (740sq ft) $175,000; Lease 4 (723sq ft) $125,000; and Lease 5 (1,009sq ft) $200,000.

The recommended evaluation and selection criteria for each concession will be based on the following scoring system out of 100. Proposed concept (40 points); Design Intention and Capital Investment (25); Customer Service and Quality Control (15); Business Plan (10); and Minimum Annual Guarantee Offer (10).

Airport management says that the proposal documents can be viewed and downloaded online at the following link: http://www.flysfo.com/business-at-sfo/current-opportunities

To see a plan of the shops in promimity to the terminal area click on the image below: