Also known as the prime tenant, draw tenant or key tenant. A tenant usually strategically located in a shopping center to generate and maximize consumer traffic for other smaller retail tenants in the center.
Anchor tenants are typically:
The largest and most prestigious tenant in the center, although a center may have more than one anchor tenant, such as in a power center ( www.practicallaw.com/5-506-9162) or regional center ( www.practicallaw.com/9-506-9315) .
Either a department store or a major retail chain with enough prestige and popularity to attract other retail tenants and consumers.
The most financially stable and creditworthy tenant in the shopping center that can greatly affect the landlord's ability to obtain financing for its shopping center. Sometimes anchor tenants may be required before the landlord can obtain financing for its shopping center.
Able to negotiate lower rental rates compared to the smaller retail tenants located in the center.