anchor tenant

(redirected from anchor store)
Also found in: Dictionary, Encyclopedia, Wikipedia.

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 second phase will comprise anchor stores, extra retail for major high street brands, leisure space, restaurants, over 2,500 car parking spaces and a Low Carbon Energy Centre.
He said, if the plan was secured, a development could include an anchor store and other smaller shops, as well as potential office development.
We have always been talking not just to John Lewis but a number of other major anchor stores, and that dialogue will continue.
The objective of this study is to investigate whether the image of the anchor store of a shopping complex will materially affect the image given to a small retailer existing in the same complex.
Both anchor stores will open for business in the spring of 2008 when development is finished.
The US high-end anchor stores such as Macy's or Nordstrum would offer something different that makes Coventry distinct.
The John Lewis Partnership is taking the 230,000 sqft anchor store at the southern end of Paradise Street.
The focus would then switch to signing up the third anchor store.
The Co-op is expected to be the anchor store of the new scheme.
Additionally, he will be responsible for overseeing the Company's relationships with its important anchor store merchants.
Plans have been submitted for a 150,000 square foot retail anchor store with approximately 220 luxury_residential units to be built above.