Miami International Airport, in the midst of $9 billion in physical growth, is on the runway to also revamp the stores and dining that passengers can choose from in an upgrade that will markedly swing the mix from mostly shopping to nearly two-thirds food and beverage. While reworking terminals is s low, most food and shopping concessions will vastly alter within three years, all funded by the tenants, who will get new 12-year leases, rebuild their spaces and funnel at least $1.1 billion to the airport. The sweeping reconfiguration of passenger amenities will come with a bevy of new dining and shopping concepts in present and new locations with the current strong local flavor and a new secret shopper program to monitor performance. The plan was unveiled last week to the county’s Airport Committee, which reacted to the revolutionary reshaping with a long string of superlatives but complaints from Keon Hardemon, who said, “We know that this airport is not what it should be,” and who wants commissioners, not the airport, to decide who gets leases. The committee sent the revolutionary program to the county commission, while expecting intervening tweaks. Today’s 244 concession spaces are 46% food and beverage, 54% stores. That’s to reverse to 63% food and beverage and 37% stores, which Aviation Director Ralph Cutié said is the industry-recognized standard. The shift that removes some retailers will add new spaces for food and beverage, as will new areas coming with the growth in terminals. While leases of current tenants will be renegotiated, the added space will face competitive bidding. “If this were to go out for bid … I think it would take another decade” to pick winners, followed by time to rebuild and upgrade the quarter-million square feet in the terminals that will be upgraded by current tenants, said committee chair Kevin Marino Cabrera. “If it ain’t broke, don’t fix it.” The plan is to move at lightning speed. Once the commission resolves to proceed, businesses now in 90% of airport concession space will get only 10 days to sign leases. Each must then upgrade its site, spending at minimum $850 per square foot for retail and $1,000 for food and beverage for the first 1,500 square feet, with all spending at least $500 per square foot for the rest of their space. They would have to finish within three years. That means concessionaires would spend at least $215 million in all. If they want 15-year leases instead of 12 at lucrative airport sites, they must spend an added 30% upfront, a collective $65 million. Under the deal the county has cut over four months of negotiations, lease rates – which now are inconsistent – would rise toward a standard level. Leases would also add new percentage fees to the county, with one to improve customer experience, one for warehousing logistics, one for common infrastructure repair and maintenance, and one for marketing that would fund advertising and the secret shopper program. “I guarantee you that the concessionaires have made tremendous concessions,” said Danielle Cohen Higgins, who sat in on tenant talks and made the resolution. Concession upgrades raise sales an estimated 25%, sending more funds to the airport, which gets a percentage of revenues. The committee did not discuss how much revamping of 90% of retail and dining space for three years could affect either passengers or revenues. Said Roberto Gonzalez, “I think that this is a win-win.” Related Posts:Latam Airlines to expand its MIA VIP clubFour major Miami International Airport upgrades on runwayAAR hangar lease to add 250 airport maintenance jobsDevelopment deal would bolster corporate jet fleetPlan for vast new Miami airport on runwayThe post Miami International Airport pivoting stores to dining appeared first on Miami Today. ...read more read less