San Francisco offers rent relief to concessionaires

Print Article E-Mail Article

San Francisco International airport has become the first to offer concrete assistance to its struggling retail tenants. Airport director John Martin announced that he will ask the Airport Commission to provide temporary financial relief to its concessionaires. He will propose to the Commission at its October 16 meeting that minimum annual guarantees (MAGs) be temporarily suspended with effect from September 11. Concessions already paying a percentage rent will continue to pay based on the percentage structure detailed in their lease.

Martin commented: "Our financial stability depends on the success of the many businesses at SFO who serve our visitors and employees. I am confident the Airport Commission will work with staff to ensure that concessions can continue to weather the unprecedented drop in passenger traffic since the September 11 terrorist attacks."

The exact financial ramifications for the airport of the rent changes remain unclear and are entirely dependent on passenger traffic. The MAG suspension will be held under review each month.

In a separate statement, San Francisco said safety remains its main priority and although it was taking a hard look at current capital improvement programmes, a project to modernise runways will move forward.