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 ?
He said: "Having an anchor store is not necessarily something that won't happen.
So mall officials asked the village to alter the plan so they weren't required to fill both vacant anchor stores, a deal the village board accepted.
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.
Work on the two anchor stores, John Lewis and Debenhams, is advanced with both buildings visible from the city centre.
Debenhams is already signed up to developers Hammerson's pounds 350 million Bull Ring project, but the Lewis's snub leaves Hammerson searching for one more anchor store and Land Securities looking for two anchors for the pounds 400 million Martineau Galleries scheme.
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.
The council now says it is exploring other options - including having no anchor store at all.
John Lewis was the main anchor to be signed up for the development, with competition strong for the second anchor store. Debenhams beat off competition from big name groups such as House of Fraser to land the second site.
THE developer of Coventry city centre's City Centre South retail scheme has missed a deadline that had been set to announce an anchor store for the huge shopping complex.
``The second anchor store is situated on Lord Street opposite the corner of South John Street and comprises 180,000 sqft of retail space.''
A pounds 200million investment could secure a major new "anchor store" as part of the pounds 1billion transformation of Coventry city centre.
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.