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Client asked on 02 Feb 2012 in Retail.

How much does it cost to lease retail space at an airport?


1
Ravi M
Ravi M advised on 03 Feb 2012
Virtual Consultant - Start-up / Business
Hope you aware that retailing in airports are subject to very high volatility and only giants with very high budget can succeed.

Across the globe three types of leasing methods at airports adopted. (long lease up to 10 year contract)

1. Direct leases with individual operators - Here lease rents are usually calculated as a percentage of revenues and in some airports based on the size of the retail facility.

2. Management contracts - Here revenues paid to the airport and sharing of management fee.

3. Single bidder - who outsource various small shops.

Check with nearest airports for the tender dates and bid as an individual or along with the a major bidder - ie., the major bidder will be single point of contact for airport whereas your contract can be something like a sub contract.

The norms are not uniform across all airports even within a country. Check with the dedicated websites for the airport and proceed further.

The cost is really very expensive and the risk is very very high. As long as you are ready to play a high risk game you can proceed.

Mostly food shops thrive a lot when compared to other shops.

Hence quoting a rate depends on the influx of passengers in that airport over the past 5+ years.
Ravi solved this issue.