June 25, 2015

Summer ConcessionsLeasing Opportunities Outreach Forum

Agenda  Opening Remarks IAD & DCA Concessions Progress Report Overview – Dulles International and Reagan National Airports Airport Concessions Disadvantaged Business Enterprise 

(ACDBE) Certification Information Summer 2015 Leasing Opportunities  Question / Answer Session

Public Outreach Forums ‐ 4 Number of People that Attended Outreach Forums ‐ 983 Number of Proposals Sent ‐ 2,491 Number of Responses Received ‐ 743 Number of Spaces Leased ‐ 163  Estimated Tenant Capital Investment ‐ $78 Million  Percentage of the Entire Redevelopment Program Leased ‐ 84% Number of Companies Currently in the Redevelopment Program ‐ 55 Estimated Total Annual Rent Increase ‐ $11 Million Number of Units Open as of 6/25/15 ‐ 74

Accomplishments to DateThrough Phase IV

Leasing Recap

Dulles International Leasing UpdateRetail

3

Brands at Dulles International

Reagan National Leasing Update

Brands at Reagan National 

grille district

Local Concepts

&pizza

brb(be right burger)

Taylor Gourmet

Washington Informer

American Tap Room

Capitol Grounds Coffee

Five Guys

Chef‐Driven Concepts

By Michael Symon 

By Geoff Tracey 

with Jeff Tunks

with Carla Hall 

with Ruth Gresser

with Robert Wiedmaier

By Richard Sandoval 

By Mike Isabella

By Wolfgang Puck

Reservoirwith Robert Wiedmaier

Pagewith Carla Hall

Tagliarewith Ruth Gresser

Custom Burgerswith Jeff Tunks

El Centro D.F.By Richard Sandoval

Kapnos TavernaBy Mike Isabella

The KitchenBy Wolfgang Puck

Bar SymonBy Michael Symon

Chef Geoff’sBy Geoff Tracey

District

Bistro Atelier

Legal Sea Foods

District Chop House 

Grille District

Firkin & Fox

DC Craft Brews

Smashburger

Better Brands

Brooks Brothers

Burberry

Tumi

Coach

Montblanc

Thomas  Pink

L’Occitane

Michael Kors

Vineyard Vines

Swarovski

Estēe Lauder/ M.A.C

Overview

Manager for the food & beverage and retail programs at Dulles International and Reagan National Airports

Responsibilities include:  Leasing Marketing Management ACDBE Compliance Construction Coordination

IAD Overview 135 gates 133 domestic & international destinations 28 international carriers with over 400 weekly departures 21.6 million passengers in 2014 18,000+ employees 11th consecutive year of international growth

IAD OverviewPassenger Demographics

76% of passengers spend more than one hour in the airport prior to departure

61% of passengers spend more than 90 minutes at the airport prior to departure

Median income ‐ $92,810

DCA Overview 44 gates 434 daily departures 81 non‐stop destinations  20.8 million passengers in 2014 (highest since 

opening) 7,000+ employees

DCA OverviewPassenger Demographics

60% of passengers spend more than one hour in the airport prior to departure

42% of passengers spend more than 90 minutes at the airport prior to departure

Median income ‐ $96,110

IAD and DCA Overview2014 Sales and Enplanements

IAD Sales: $105.6 Million Enplanements: 10.6 Million Sales per Enplanement: $9.94

DCA Sales: $95.2 Million Enplanements: 10.5 Million Sales per Enplanement: $9.11

IAD OverviewSales PSF (by Category)

Over 100 shops  2014 sales per 

square foot: $996

$1,114  $1,107 

$545 

$996 

$200

$600

$1,000

$1,400

$1,489 $1,715 

$520 

$1,319 

$200

$600

$1,000

$1,400

$1,800

$2,200

$2,600

$3,000

DCA OverviewSales PSF (by Category)

Over 75 shops           2014 sales per 

square foot: $1,319

Unique Airport Conditions

Unique Airport Conditions Space size

Aggressive economics

Hours of operation

Storage

Distribution and delivery 

Design and construction 

ACDBE requirements

Security

IAD Overview Hours of Operation (Average)

Location Food & Beverage Hours* Retail Hours*

Main Terminal 24 Hours 5:00 AM – 10:00 PM

Concourse A 6:00 AM – 10:00 PM 6:00 AM – 9:00 PM

Concourse B 5:00 AM – 9:00 PM 6:00 AM – 9:00 PM

Concourse C 5:00 AM – 10:00 PM 7:00 AM – 9:30 PM

Concourse D 5:00 AM – 10:00 PM 7:00 AM – 9:30 PM

*Select Retail, Newsstands and Food & Beverage locations are open 24 hours. All hours are subject to change based on flight schedules. 

DCA OverviewHours of Operation (Average)

Location Food & Beverage Hours* Retail Hours*

National Hall 6:00 AM – 9:00 PM 7:00 AM – 8:00 PM

Terminal A 5:00 AM – 9:00 PM 7:00 AM – 8:00 PM

Terminal B 5:00 AM – 9:00 PM 7:00 AM – 8:00 PM

Terminal B/C 5:00 AM – 9:00 PM 7:00 AM – 8:00 PM

Terminal C 5:00 AM – 9:00 PM 7:00 AM – 8:00 PM

*Select Retail, Newsstands and Food & Beverage locations are open 24 hours. All hours are subject to change based on flight schedules. 

Marketing Program

Marketing Support Merchant Communication Customer Service Branding and Digital Marketing Sales Programs and Events Leasing Outreach Public Relations

Marketing Awards 2014 ICSC MAXI Gold‐ NOI Enhancement 2014 ICSC MAXI Finalist‐ New Media & Emerging Technology 2013 ICSC MAXI Finalist‐ New Media & Emerging Technology

Each store receives two secret shop evaluations in each “round.” Rounds of secret shopping occur every two months, meaning that a store 

will receive 12 evaluations in a 12‐month period. Associates who earn a score of 100% on secret shop evaluations receive a 

$100 gift card reward; 94‐99% receive a $50 gift card. Each round of secret shop evaluations are followed by one‐on‐one tenant 

consultations. Management and associate training seminars are held quarterly. Topics are 

selected based on tenant feedback and cater to each property’s needs.  

Customer Service ProgramSecret Shop Evaluations, Consultations, and Training

Customer Service ProgramTraining Seminars

ANNUAL MERCHANT MEETINGS

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Airport Concession Disadvantaged Business Enterprise (ACDBE) Program

ACDBE (Airport Concessions Disadvantaged Business Enterprise)

Goals of our contract – 25% Retail; 35% Food & Beverage

Number of ACDBE Firms Currently in the Redevelopment Program – 36

Estimated Percentage of ACDBE Participation – 49.46%

Julian F. SenterAssistant Manager of ACDBE CertificationsEqual Opportunity Programs Department 

Metropolitan Washington Airports Authority

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Airport Concession Disadvantaged Business Enterprise (ACDBE) Program

Federally required program that is locally implemented

Pertains to concession activities of airports receiving Federal financial assistance from Federal Aviation Administration (FAA)

Intended to ensure nondiscrimination in the award and administration of concession opportunities and create a level playing field on which ACDBEs can compete fairly for concession opportunities

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Code of Federal Regulations

49 CFR Part 26

49 CFR Part 23

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Equal Opportunity Programs (EOP) Department

The EOP Department is responsible for the implementation of the Airports Authority’s ACDBE Program in accordance with 49 CFR Parts 26 and 23 as amended

EOP’s primary ACDBE responsibilities:• Outreach• Certification• Compliance

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

ACDBE Basic Eligibility Requirements51% owned and controlled by socially and economically disadvantaged individual(s)

Disadvantaged owner(s) must be U.S. citizen(s) or lawfully admitted permanent resident(s) of the U.S.

Firm must meet ACDBE small business size standard, generally, $56.42 million in average annual gross receipts (3 year average). Affiliates are included.

Firm must be organized as a for-profit business

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Presumptive Disadvantaged Groups (Rebuttable)

African Americans

Hispanic Americans

Subcontinent Asian Americans

Native Americans

Asian-Pacific Americans

Women

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Burden of ProofOwnership (documentable proof)

Management Control (daily control)

Owner(s) Personal Net Worth is below $1.32 million (after allowable adjustments)

Firm meets ACDBE size standards (gross receipts or number of employees)

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

ACDBE Certification ProcessHome state ACDBE certification first

Submit complete DBE Uniform Certification Application

Submit all applicable supporting documents (15-25 documents)

Site visit/interview with principal owner(s)

Request for additional information/clarification (if necessary)

Render final decision (within 90 days of receipt of full application, including additional requested information)

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

ACDBE Allowable Participation

ACDBE participation may be achieved through the following methods:

Direct lease with ACDBESublease or subcontract with ACDBEJoint Venture with ACDBE(s)

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Joint VenturesAssociation of an ACDBE firm and one or more other firm(s)

Carry out a single, for profit business enterprise

Parties combine their property, capital, efforts, skills, and knowledge

ACDBE is responsible for a distinct, clearly defined portion of the work of the contract

ACDBE share of capital contribution, control, management, risks, and profits of the joint venture are commensurate with ACDBE firm’s ownership interest

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Joint VenturesACDBE joint venture member must be certified in the type of work to be undertaken in the joint venture

Joint venture entities cannot be certified as an ACDBE

Joint venture agreement must be reviewed and approved by EOP priorto lease/contract execution, for ACDBE participation to count toward meeting the ACDBE goal

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Informationwww.mwaa.com

Metropolitan Washington Airports AuthorityOffice of Equal Opportunity ProgramsSuite 1441 Aviation CircleWashington, DC 20001-6000(703) 417-8625

Richard Gordon Manager of Equal Opportunity Programs richard.gordon@mwaa.com

Julian F. SenterAssistant Manager of DBE/ACDBE Certifications julian.senter@mwaa.com

Terry L. Woodson Assistant Manager of Outreachterry.woodson@mwaa.com

Retail Merchandising Unit (RMU) / Kiosk Program

Retail Merchandising Unit (RMU) and Kiosk Program

Focus on unique needs of each airport

Re‐design of RMU / Kiosk Program at both airports

New state‐of‐the‐art fixtures

Opportunity for:  Small businesses Entrepreneurs Short‐term commitment Low capital Incubation to permanent 

tenant

New RMU and Kiosk Design

Conceptual RenderingConceptual Rendering

Specialty Leasing Locations17 RMUs & 4 Kiosks

IAD Concourse A – 5 RMU Locations Concourse B – 7 RMU Locations

DCA National Hall – 5 RMU Locations National Hall – 4 Kiosk Locations

Dulles InternationalSpecialty Leasing Opportunities

Reagan NationalSpecialty Leasing Opportunities

Leasing OpportunitiesIAD and DCA

Dulles International Leasing Opportunities by Category

1 Bar / Restaurant Location 3 Quick Serve Locations 1 Café with Grab n’ Go Location 1 Café with Bar Location 1 Coffee Kiosk Location 1 Coffee with Grab n’ Go Location

Dulles International ‐ Opportunities 

6‐ Coffee w/ Grab n’ Go

Retail

31‐Bar/Restaurant

2‐ Coffee (Kiosk) 3‐ National Fast Food Brand

4‐Mexican Quick Serve 5‐Asian Quick Serve

7‐ Café with Bar8‐Café with Grab n’ Go

Dulles InternationalOpportunities in Concourses C and D 

Retail

1‐ Bar/Restaurant1,105 SF

2‐Coffee Kiosk(24 Hours)459 SF

3‐ National Fast Food Brand2,449 SF

Dulles InternationalOpportunities in Concourses C and D 

1‐Bar/Restaurant1,105 SF

2‐Coffee Kiosk24 Hours459 SF

3‐National Fast Food Brand2,449 SF

Dulles InternationalOpportunities in Concourses A and B 

6‐Local/RegionalCoffee w/ Grab n’ Go970 SF

3

4‐Mexican Quick Serve (to include breakfast)2,265 SF

5‐Freshly preparedAsian Quick Serve1,329SF

Dulles InternationalOpportunities in Concourses A and B 

6‐Local/RegionalCoffee w/ Grab  n’ Go970 SF

4‐Mexican Quick Serve(to include breakfast)2,265 SF

5‐Freshley PreparedAsian Quick Serve1,329 SF

Dulles International International Arrivals Café Package

1 In‐line Location for Café with Grab n’ Go in Main Terminal, Baggage Level

1 Kiosk Location for Café with Bar                    in Main Terminal, Baggage Level

Dulles InternationalMain Terminal – Baggage Level 

(International Arrivals)

7‐ Café with Bar+/‐ 2,000 SF

8‐ Café with Grab n’ Go1,547 SF

Dulles InternationalMain Terminal – Baggage Level 

(International Arrivals)

7‐ Café with Bar+/‐ 2,000 SF

8‐ Café with Grab n’ Go1,547 SF

Dulles InternationalMain Terminal – Baggage Level Photo

Dulles InternationalMain Terminal – Baggage Level Photo

Dulles International ‐ Opportunities 

6‐Local/RegionalCoffee w/ Grab  n’ Go970 SF

1‐Bar/Restaurant1,105 SF

2‐Coffee Kiosk(24 Hours)459 SF

3‐National Fast Food Brand2,449 SF

4‐Mexican Quick Serve(to include breakfast)2,265 SF

5‐Freshly preparedAsian Quick Serve1,329 SF

7‐ Café with Bar+/‐ 2,000 SF

8‐Café with Grab n’ Go1,547 SF

Reagan National Leasing Opportunities by Category

1 Retail Location 1 Bar / Restaurant Location 1 Coffee Kiosk Location

Reagan National ‐ Opportunities 

2‐Retail

1‐Asian‐Sushi Bar/Restaurant

3‐National Brand Coffee(24 Hour Location)

Reagan National ‐ Opportunities 

2‐Retail611 SF

1‐ Asian‐SushiBar/Restaurant984 SF

3‐ National Brand Coffee(24 Hour Location)480 SF

Leasing Process

Leasing Goals Stimulate competition Drive revenue Get innovative concepts and best operators ACDBE participation and local businesses Transparency and open access

Tenant outreach Create a list of interested 

tenants for different opportunities

Proposals sent to interested / qualified parties

Counter proposals Evaluate counters and 

negotiation MWAA approval Offer lease 

Leasing Process

Choosing a Tenant“How do you choose a tenant for the airport?” 

It is our practice to get multiple offers on each space to create demand, establish a market value for the space, and ascertain the highest and best use for the location. We then evaluate the offers based on the following:

Use & Concept (innovative and new) Economics (rent)  Operator Experience and Success  Financial Strength of Operator 

ACDBE Participation Store Design  Investment

Facebook/DullesFoodandShops/ReaganFoodandShops

Twitter@IADFoodandShops@DCAFoodandShops

WebsiteDullesFoodandShops.comReaganFoodandShops.com

Follow us online:

Contact UsLEASINGMichael DiCosola Executive Vice President, Leasingmdicosola@marketplacedev.com (617) 243‐7452

Susan Drury Leasing Managersdrury@marketplacedev.com (703) 417‐1565

Hanna Koren Specialty Leasing Manager hkoren@marketplacedev.com (703) 417‐1565

GENERAL MANAGERSKathy Viola General Manager, Reagan National (DCA)kviola@marketplacedev.com (703) 417‐1565

Kierran (KC) Casey General Manager, Washington Dulles (IAD)kcasey@marketplacedev.com(703) 572‐5080

COMPLIANCE MANAGEREric RuffinCompliance Managereruffin@marketplacedev.com (703) 417‐1565