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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.”

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
Mayor Christine Lundberg said she welcomes a discussion about changing the agreement to reflect today's market conditions "because we can all see malls are changing all over." She was noncommittal about potentially ending the city's screening of anchor tenants, saying she wanted to first take a comprehensive look at the agreement.
"I am pleased to welcome Charter as an anchor tenant to Bakerview Square," said Morgan Bartlett, developer of Bakerview Square.
play a We may not be able to build this immediately until a suitable anchor tenant can be found but we will work with the council over the next few months to establish the principle of what we will be able to build on the site.
The concept of the anchor tenant was born in the 1950s, when developers built regional malls with large department stores as the central figures.
"Now we have secured the anchor tenant we will be progressing a wider marketing campaign and are optimistic of securing further lettings in the near future."
Albert Dock director Tim Mulholland said up to six major national homeware retailers have indicated they would open in the Albert Dock once an anchor tenant was secured.
The parameter [Alpha] is an arbitrary parameter that measures the cross-patronage between the anchor tenant and the non-anchor tenant, with [Alpha] [greater than or equal to] 0.
A 15-point "commercial space initiative" ranges from making available the huge external fuel tanks expended by the space shuttle, for use in space by commercial and nonprofit organizations, to having NASA lease space as the "anchor tenant" on an automated, research-and-manufacturing space station being proposed by a Houston-based industry partnership.
However, the actual development can only start once the anchor tenant formally commits to the scheme.
Coun Richard Wearmouth, chairman of Advance Northumberland, said: "We are of course disappointed to find that our anchor tenant has still not given a commitment to proceed.
Fitch's base case analysis included additional cash flow stresses on the Hanford Mall; in addition, the negative outlook on classes E, F and G reflect an additional sensitivity test, which assumed a 35% loss severity on RiverTown Crossings Mall (24.3%) due to declining sales and concerns regarding anchor tenants, and a 35% loss severity on Hanford Mall (6.4%) due lack of updated tenant sales and 38.8% NRA expiring in 2019 including anchor tenant Sears and Cinemark.
This followed a dispute with then NSSF anchor tenant Nakumatt Holdings.