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Committee backs amendment adding three retail locations to Terminal 2 lease, no change to base rent
Summary
The Budget and Finance Committee voted to forward a resolution approving an amendment to MRG San Francisco Terminal 2 LLC’s lease at SFO to add three retail locations (one permanent, two temporary) to Terminal 2 retail market space while leaving the minimum annual guarantee unchanged at $2.3 million.
The Budget and Finance Committee on Oct. 1 voted 2-0 to forward a resolution approving amendment number 1 to the Terminal 2 retail market lease between MRG San Francisco Terminal 2 LLC and the City and County of San Francisco acting by and through the Airport Commission. The amendment adds one permanent 409‑square‑foot news wall and two temporary specialty retail locations (563 and 609 square feet) to the tenant’s premises in Terminal 2; the 12‑year lease term and the minimum annual guarantee (MAG) of $2,300,000 remain unchanged.
Daniel Tseng of San Francisco International Airport said the amendment is intended to partially mitigate a more than three‑year delay the tenant experienced accessing a permanent space in Terminal 2 due to a temporary relocation of the American Express Centurion Lounge tied to Terminal 3 redevelopment. The airport said AmEx is expected to vacate the space between Oct. 2027 and March 2028 depending on redevelopment progress.
The BLA recommended approval and noted that although there is no change to the MAG, percentage rent and promotional charges will increase as businesses operate in the added spaces, producing additional revenue. No public comment was submitted on the item. The committee forwarded the amendment to the full Board with a positive recommendation; the full Board will take final lease amendment and ratification actions if approved.
