We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is an Anchor Tenant?

Malcolm Tatum
By
Updated Jan 28, 2024
Our promise to you
WiseGeek is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGeek, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Anchor tenants are businesses that serve as the major tenant in a shopping mall, office building, or business district. A tenant of this type is usually a company that is well-established, has a good reputation, and serves as a magnet for other businesses that want to locate in the same general area and possibly attract business from either the anchor tenant or its customers. Also known as a draw tenant or key tenant, the lack of an anchor tenant will often mean difficult economic times for the owners of the property, since attracting other businesses will be much more difficult.

One of the more common applications of the anchor tenant approach is found with shopping malls. Typically, malls will seek to include at least one or two well-known retail chains or department stores within the selection of stores available to shoppers. Smaller malls may design the structure so that an anchor tenant is included at each end of the mall, with lesser-known merchants located in the expanse located between the two. This approach helps to make access to the key stores easy, while also providing a great deal of foot traffic to the other merchants, thus enhancing the possibility of sales for all stores within the facility.

Another example of the use of an anchor tenant can be seen with an office building. Here, the top floor may serve as the hub of operation for the draw tenant. The lower floors are reserved for companies that hope to do business with either the key tenant proper, or at least the employees of this primary tenant. For example, if the top floor of an office building is located on the top floor, the lower floors may be occupied by lunch counters, a restaurant or two, and retailers who carry business attire. The mix of tenants may also include businesses that offer services to support the work of the law firm, such as detective agencies, notaries, and printers specializing in business cards, brochures, and business documents.

The decision by an anchor tenant to move the operation to another location can serve as the death knell for a mall or office building. This often occurs as business and shopping centers shift from one area of a community to another. Typically, the smaller merchants will close within a year or two after the anchor tenant has vacated the premises, unless another anchor tenant can be enticed to take over the vacated space. Even then, if the nature of the new key tenant is different from the nature of the recently vacated tenant, the change may still result in the departure of a number of the smaller merchants, which in turn increases the chances for closing the entire facility.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Malcolm Tatum
By Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing to become a full-time freelance writer. He has contributed articles to a variety of print and online publications, including WiseGeek, and his work has also been featured in poetry collections, devotional anthologies, and newspapers. When not writing, Malcolm enjoys collecting vinyl records, following minor league baseball, and cycling.
Discussion Comments
Malcolm Tatum
Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing...
Learn more
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.