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



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

Recourse Loan

A recourse loan is a type of loan where the lender can pursue the borrower’s personal assets, beyond the collateral, in the event of default.. more

Pari Passu

A pari passu clause is a contractual provision ensuring that multiple creditors share equally in repayment priority from the borrower’s assets.. more

Non-Recourse Loan

A non-recourse loan is a type of loan where the lender’s only remedy in case of default is to seize the collateral property; the borrower is not. more

Net Operating Income

Net operating income (NOI) is the total income generated by a property after operating expenses are deducted but before taxes and financing costs.. more

Mechanic's Lien

A mechanic’s lien is a legal claim by a contractor, subcontractor, or supplier for unpaid work or materials provided for a property.. more

Lis Pendens

Lis pendens is a legal notice filed in the land registry indicating that a property is subject to ongoing litigation that may affect its title.. more

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