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 ?
How has the evolution of anchor tenants affected property managers?
Lake says the idea behind selecting the anchor tenants was to attract large reputable international companies inclined to do a substantial amount of business in the mining industry or in the Sudbury area.
This means that the maximum rent (in present value terms) our anchor tenant would be willing to pay and still find locating at the shopping center a worthwhile endeavor is
Other notable examples elsewhere include Forest City Ratner securing the New York Times as a development partner and anchor tenant in a tower it just completed at 620 Eighth Avenue, and Douglas Durst landing Bank of America as the anchor tenant for One Bryant Park in Midtown.
These investments vary from project to project, but include a) leasing to a new major powerful drawing anchor tenant or a series of attractive junior anchor tenants b) the renovation of exterior facade of the mall, (c) the renovation of the mall entrances, (d) an upgrade to the mall's common area corridors and lighting, (e) the mall's entire parking lot will be resurfaced and re-striped and (f) the mall's signage will be significantly upgraded.
A 15-year veteran of Federal Realty Investment Trust, Chris Weilminster assumes the role of senior vice president, anchor tenant leasing.
In general, the taxes are collected by the municipality and allocated to pay debt service whether the anchor tenant teams are playing or not.
This deal enabled Raymond & Feldman to avoid the capital-intensive and disruptive process of relocating to new premises, while the landlord was able to perpetuate its cash flow from these floors in light of a large block of space being vacated by the building's anchor tenant, Bloomberg L.
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.
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.
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.