An Anchor Tenant is the flagship, prime, or main tenant for any commercial/retail space. It is the main attraction/draw, which gets big footfalls to the property, while also playing a part in attracting other tenants to the same.
Anchor tenants are synonymous with commercial properties like office buildings, retail spaces, shopping malls, clubs, etc. They mean prime, flagship, or core tenants, stores, and brands, which draw higher traffic volumes to the property. They are often the biggest and most reputed tenant in case of an office building, with the highest number of employees as well. In shopping malls, these flagship tenants are usually given spaces towards the ends. They also get rental discounts and favorable terms and conditions in return for signing leases for the long term.
Anchor tenants are coveted by owners of office buildings and other commercial spaces. For example, suppose IBM took up office space on a long-term lease, and with the most employees in a commercial space. It will be the anchor tenant or flagship tenant for the building, occupying the highest area, and drawing more companies to take up office space in that building. Similarly, suppose a brand like Gucci takes up a retail store in a shopping mall or any other shopping/retail project/zone. It will become the anchor tenant, drawing more companies/brands to the space. It will have a long-term lease, occupying the most and best space in the property, and drawing the highest footfalls, on account of its brand name and reputation.
