Which of the following is an effect of having strong anchor tenants in a shopping center?

Having strong anchor tenants in a shopping center typically leads to improved financing options for several key reasons. Anchor tenants are usually well-established brands or businesses with a significant customer base and financial stability. Their presence not only attracts more foot traffic to the shopping center but also enhances the center's overall marketability and reputation.

With a well-known anchor tenant, lenders and investors often view the property as less risky, as the likelihood of consistent revenue generation increases. This can result in better borrowing terms, lower interest rates, or enhanced investment opportunities. Additionally, strong anchor tenants can provide a stabilizing influence on the entire shopping center, making it an appealing investment for banks and financial institutions looking to finance the development or operational costs associated with the property.

While other effects such as higher rental rates for all tenants can be associated with strong anchors—since their success boosts consumer confidence and brings in customers—the direct relationship between anchor tenants and financing options is a fundamental component of real estate development and investment strategy.