Reaching Commercial Agreement for the Largest Rental Car Facility in the United States
In November 2016, Los Angeles World Airports distributed a non-binding Memorandum of Understanding (MOU) for the financing, development, and operation of a new rental car center (RCC) at Los Angeles International Airport (LAX). The new RCC is expected to have approximately 5.5 million square feet, and a cost of over $1.0 billion dollars. As of January 2017, rental car companies representing over 60% of gross revenue market share have signed the MOU.
In collaboration with LAWA executive management, WJ Advisors assisted in the development of proposed business arrangements that were included in the MOU as well as preparation of the MOU. Over a period of approximately 2 years, WJ Advisors participated in and with LAWA, led commercial discussions with the rental car companies serving LAX regarding proposed business terms.