In commercial real estate, what is an anchor tenant?

An anchor tenant refers to a major tenant in a commercial retail space, typically a well-known brand or large store that serves as a drawing factor for customers. This type of tenant usually occupies a significant portion of the retail space and helps to attract additional foot traffic to the location. The presence of an anchor tenant is crucial as they often enhance the visibility and appeal of the retail center, benefiting both the landlord and the smaller tenants within the same property.

In the context of commercial real estate, an anchor tenant is instrumental in establishing a stable customer base, leading to increased sales and customer visits for other businesses in the vicinity. Their reputation and customer loyalty can greatly influence the success of the overall retail environment.