In the real estate investment industry, an anchor tenant is typically a large, well-known business that serves as the main draw to a commercial property, particularly in shopping malls or shopping centers. This tenant often occupies a large space and attracts significant customer traffic. Anchor tenants are considered critical to the success of a retail center because they generate footfall, which can benefit smaller businesses in the vicinity by driving customer traffic.
Examples of anchor tenants are usually big-box retailers, supermarkets, department stores, or cinema multiplexes. The presence of such a tenant can significantly influence the commercial viability of the property, and hence, this is a key consideration for real estate investors when looking at potential investments in retail spaces.
Because of their importance to the commercial property, anchor tenants often have substantial negotiating power in terms of lease terms, which might include lower rents per square foot or other favorable conditions.