Anchor Tenant Law and Legal Definition
Anchor tenant is a major department or chain store located at a shopping mall so as to give maximum exposure to smaller, satellite stores. In other words it is a major shopping center that attracts majority of customers than other tenants because it rents more space. The nature of an anchor tenant depends on the nature of the commercial activity. An anchor tenant pays a lower rent than that is paid by ancillary tenants. It is often necessary to have a lease commitment from an anchor tenant before a shopping center can be financed. Hence, agreements with anchor tenants must be made before most banks finances the construction of a mall or shopping center. An anchor tenant is often referred to as a magnet store, anchor store, draw tenant, key tenant, prime tenant, or a traffic generator.
