anchor tenant

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Anchor Tenant

A large store that rents space in a mall or other shopping center. An anchor tenant has the ability to attract more people to the mall than the other tenants, and because it rents more space, it will generate more of the mall's revenue. Anchor tenants are often large department stores. Agreements with anchor tenants must be in place before most banks will finance the construction of a mall or shopping center.

anchor tenant

A major department store or chain store located in a shopping center so as to attract customers who will then shop at the smaller, satellite stores; sometimes referred to as a traffic generator or magnet store.

• Because of the critical importance of that traffic to the smaller tenants, wise shopping center owners in a position to negotiate terms will prohibit the anchor from going dark, meaning vacating its space. Otherwise, the anchor could move to a more desirable location, continue paying the rent for the old property, but effectively cause most of the other tenants to go out of business and default on their leases because of the lack of traffic. Unfortunately, important anchor tenants usually have the clout to refuse to sign a lease with such terms.

• Anchor tenants often reserve the right to dictate the selection of the satellite tenants and to prohibit ones which might be incompatible with their core philosophies (such as liquor stores) or who might compete with their merchandise sales.

• Arelated term is shadow anchor, used when a small shopping center wants to communicate that an important traffic generator is next door or directly across the street. An ad might read, “Subject property shadow anchored by Wal-Mart to the east and Target to the west.”

References in periodicals archive ?
With the completion of this transaction, together with the anticipated closing of the acquisition of the Northgate Mall, the Company's portfolio including non-owned anchor tenants will consist of six regional malls aggregating approximately 6.
Seaview Square's two active anchor tenants -- Sears and Value City -- are being retained, but the stores are being turned into free-standing buildings.
Upon completion of the pending acquisitions of the Tallahassee Mall and Northgate Mall, the Company's portfolio, including non-owned anchor tenants, will consist of six regional malls aggregating approximately 6.
Built in the 70's, the enclosed, two-level center opened with anchor tenants Rickel's and Pathmark.
Northgate Mall, located in Colerain Township, is a super-regional enclosed mall featuring anchor tenants Macy's, Dillard's, Sears and JC Penney.
Negotiations are currently underway with two anchor tenants for more than 123,000 s/f at West Shore Plaza.
Additionally, the Company has entered into letters of intent, and has leases in advanced stages of negotiations with approximately 200,000 square feet of anchor and junior anchor tenants.
According to Steven Siegel, CBRE's chairman of global brokerage, he and his partner have already identified several service sector firms which can end up as anchor tenants at 7 World Trade Center.
Business is down for the shops that stay open, said Ruben Sarkisian, co-owner of a shoe repair shop inside the Meadows Square, and this is especially true in plazas that have lost their anchor tenants.
Best Buy is one of the most sought after anchor tenants in the United States and will be a huge draw for area residents as well as their fellow merchants in the shopping center.
This issue, IREM Region 7 Vice President Rheta Williams, CPM[R] discusses the re-imaging of anchor tenants.
The article, Minimum Impact of Bankrupt Anchor Tenants on U.