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 ?
The commercial objective of the keep open clause is simple, landlords want all shops in its centre, especially its anchor tenants, open for business and trading for the advertised opening hours to attract as much footfall and passing trade as possible.
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.
Scheduled to open in late 2003 and renamed Fallbrook Center, the mall will be home to big-box discount stores, with Home Depot, Ross and DSW Shoe Warehouse among the anchor tenants.
The Northern Centre for Advanced Technology (NORCAT) is set to lure the largest world supplier of shotcrete applications and the makers of the Canadarm to Sudbury as major anchor tenants for their residency program.
Our analysis shows that an increased cross-patronage between anchor tenants and smaller specialty retailers increases large-scale shopping center development opportunities.
Without any real anchor tenants, festival centers are characterized by their festive atmosphere making shopping a social or even tourist activity.
Scheduled to debut at the new center this fall are prominent retailers including Lowe's Home Improvement--which will serve as one of the anchor tenants at the mixed-use complex--and Longhorn Steakhouse.
Those who have anchor tenants like to stress that it gives the area an automatic population of occupants, creates instantaneous activity and helps lure in other tenants.
59 acres of land, 58 percent of which is occupied by anchor tenants and approximately 116,530 square feet of which is local tenant gross leasable space.