MUST READ: Peel Region Votes To Lower Development Charges By 50%

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

Budgeting

Budgeting in real estate refers to the process of forecasting and managing income and expenses associated with owning, operating, or developing a property.. more

Tenant Improvements

Tenant improvements refer to custom modifications or build-outs made to a leased space to suit the tenant’s operational needs, often negotiated as. more

Highest and Best Use

Highest and best use refers to the reasonably probable use of a property that results in the highest value, provided it is legally permissible,. more

Gross Lease

A gross lease is a commercial lease where the tenant pays a fixed rent, and the landlord covers most or all operating expenses such as property. more

Brownfield

A brownfield is a property that was previously used for industrial or commercial purposes and is now vacant or underused, often requiring. more

Record of Site Condition (RSC)

A Record of Site Condition (RSC) is a formal document filed with a provincial environmental authority certifying that a property meets required. more

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