Anchor Tenant

Category: business

A major retail store that draws a significant amount of consumer traffic to a shopping center or mall.

The anchor is the "magnet." Think Target, Whole Foods, or Home Depot. Smaller stores (in-line tenants) rent space in the plaza specifically to capture the foot traffic generated by the anchor. If the anchor leaves, the entire plaza’s economic survival is at risk.

Common Examples

• Securing the national grocery chain as an anchor tenant allowed the developer to easily secure bank financing for the rest of the plaza.
• Smaller boutiques often demand a co-tenancy clause allowing them to break their lease if the anchor tenant ever vacates the property.