Anchor Tenant

Learn what an anchor tenant is in Canadian commercial real estate and how these key retailers affect leasing, traffic, and property value.

Anchor Tenant

June 09, 2025


What is an Anchor Tenant?

An anchor tenant is a large, well-known retailer or business that occupies a significant portion of a shopping centre or commercial development and attracts customer traffic to the area.

Why Anchor Tenants Matter in Real Estate

In Canadian commercial real estate, anchor tenants increase the visibility, stability, and desirability of retail plazas or malls for both consumers and other businesses.



Characteristics of anchor tenants:
  • National or multinational chains (e.g., grocery stores, department stores)
  • Long-term lease agreements
  • Preferential lease rates or build-to-suit arrangements



Anchor tenants help drive foot traffic, making it easier to lease adjacent smaller retail units. Their presence may also boost property values and financing opportunities for landlords.



Understanding anchor tenants is key to evaluating retail site viability and investment potential.

Example of an Anchor Tenant in Action

A major grocery store serves as the anchor tenant in a suburban plaza, drawing shoppers to smaller retail stores in the same complex.

Key Takeaways

  • Drives traffic to commercial developments
  • Typically a large, well-known retailer
  • Often receives lease incentives
  • Increases leasing success for smaller tenants
  • *Boosts property valuation and stability

Related Terms

Additional Terms

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Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

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