San Francisco International Airport announced today that it is open to accepting commercial proposals for its Terminal 3 Retail Marketplace Lease which consists of a lease term of five years plus two one-year options (at the airport management’s discretion).

 

Airport management says that the lease is intended to offer the non-exclusive sale of merchandise reflective of the proposed concept(s) and comprises one retail location totalling around 5,200sq ft in post-security Terminal 3. The lease term is five years with two one-year options to extend, exercisable at the Airport Commission’s discretion.

 

SFO management said today: “The proposed minimum acceptable financial offer is $1,500,000.00 which will be the successful Proposer’s minimum annual guarantee for the first year of the Lease.

 

“The Airport intends to award the Lease to the highest-ranked, most responsive and responsible proposer. Each proposer must submit a proposal deposit in the amount of $375,000.00 as a guarantee that the proposer will execute said Lease.

 

 

“This proposal deposit shall be in the form of a cashier’s check, surety bond or irrevocable letter of credit in its original form.  The proposal submittal deadline is 5:00pm PT – Wednesday October 28, 2015.”

 

The minimum qualification requirements require that any proposer must have a minimum of three years within the past five of either owning or managing a retail marketplace with a clearly defined store-within-a store format.

 

In addition, any bidder must also be able to demonstrate combined gross sales of at least $5m per qualifying year. The airport is also looking for a proposal deposit amount of $350,000. In terms of rent it says this will be the greater of the MAG or 12% of revenues achieved up to and including $2m; plus 14% of revenues achieved from $2,000,000.01 and including $4m, plus 16% of revenues achieved over $4m.

 

 

In terms of the evaluation and selection criteria SFO will give 40 points for the proposed concept; 25 for design intention and capital investment; 15 for customer service and quality control; 10% for the business plan; and 10% for the minimum annual guarantee offered.

 

The airport is urging interested companies to consult its website at http://www.flysfo.com/business-at-sfo/current-opportunities to view and download the information and related documents on this concession opportunity.

 

It is also asking interested parties to address any questions or queries to John Reeb, Senior Principal Property Manager of Airport Revenue Development and Management at (1 – 650) 821-4500.