What are "anchor tenants" in a commercial property context?

Anchor tenants refer to the largest tenants within a commercial property, particularly in a shopping center or retail environment. These are typically substantial businesses such as department stores or large retail chains that have a strong brand presence and attract high customer traffic to the location. Their presence is significant because they draw in additional customers, benefiting both themselves and the smaller businesses located within the same property.

The role of anchor tenants is pivotal in creating a vibrant shopping environment; they serve as key attractions that can elevate the overall shopping experience and help to ensure the financial viability of the entire center. Consequently, other tenants often rely on the traffic generated by these anchor businesses to improve their own sales, making the relationship mutually beneficial.