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 ?
Work on the two anchor stores, John Lewis and Debenhams, is advanced with both buildings visible from the city centre.
The site plan calls for 350,000 square feet of shops, a 150,000-square-foot anchor store and 45,000 square feet of restaurant space.
Of the proposed pounds 200million scheme, he said: "It would be up to the owners and developers to attract big names to the site, but anybody spending that kind of money would want to make certain they would have a major anchor store in place to make it viable.
Hammerson, a leading European real estate company, has revised heads of terms agreed with John Lewis, the anchor store for the first phase of Eastgate retail development in Leeds.
3 million (projected cost at the Company's pro-rata share) open-air main street-style shopping and entertainment center is also expected to include two other anchor stores and approximately 60 specialty stores and restaurants.
Plans have been submitted for a 150,000 square foot retail anchor store with approximately 220 luxury_residential units to be built above.
We are pleased that Sears is the first anchor store to commit to our Roseville project," said James L.
Expected to be completed in December, the additional retail spaces will join an existing Wal-Mart anchor store at the 190,000 square feet open-air center, and will include Quizno's Sub, Payless Shoe Source, and GameStop.
Grosvenor would then turn its attention to filling the second anchor store, with House of Fraser, Debenhams, Beatties and Allders lining up to compete.
NYSE: URB), a publicly traded real estate investment trust, today announced JCPenney will be the fourth anchor store at Wolfchase Galleria, the new one-million-square-foot regional mall being developed in the Memphis area at I-40 and Germantown Parkway.
A third anchor store has been identified but Grosvenor is not expecting to confirm a tenant for around 18months.
John Lewis was the main anchor to be signed up for the development, with competition strong for the second anchor store.