anchor tenant

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Related to anchor tenant: Draw tenant

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 ?
Anchor tenants are re-formatting and re-imaging their stores to stay competitive.
According to the report, when an anchor tenant is in bankruptcy, Standard & Poor's applies conservative underwriting assumptions, particularly relative to vacancy and retenanting costs.
A third anchor tenant possibility, which Lake considers a "long shot," is the inclusion of NASA and the Los Alamos National Laboratories.
Often, securing an anchor tenant for a building before construction begins can be the linchpin that secures the entire project and the financing.
Mitigating 'go-dark' risk is JDN's ability to anticipate and re-tenant anchor tenant vacancies, as demonstrated by the recent replacement of Wal-Mart in three of four vacated locations, and substitution of Albertson's for Bruno's at four centers following Bruno's filing for bankruptcy protection.
The $780 million refinancing signals the resurgence of this outstanding asset, and caps off a very active period which witnessed the ownership renewing several large, long-term credit anchor tenants.
commented, "With these last two anchor tenants in place, First Union remains on target with its objective to have this mall substantially leased by the end of 1993.
When the plans for the Moynihan Station were first considered in the 1990's, AMTRAK was set to become the anchor tenant at the property, but has since had to withdraw its offer because of financial difficulties.
As these projects are completed and the mall shops lease up with exciting new tenants, we will draw on the high volumes of anchor tenant shoppers, driving sales and further driving occupancy.
In addition to Sleepy's, the shopping center's other tenants include Bally Total Fitness Center, which is the anchor tenant with 20,000 s/f, as well as Kentucky Fried Chicken, Subway, GNC and a variety of convenience stores.
And with Piggly Wiggly as its anchor tenant, Northgate Shopping Center has the largest branded grocery store in Sheboygan as its main retailer.
and announced that it plans to sign a supermarket as an anchor tenant and add as much as 30,000 s/f to the development.