An anchor tenant is a large, well-known tenant that drives traffic to a shopping center and supports leasing of the surrounding space.
Anchors matter in multi-tenant retail because they pull in the shoppers that smaller tenants depend on. Their leases are typically long and often come with co-tenancy provisions that allow other tenants to reduce rent if the anchor leaves. In single-tenant NNN investing, the term comes up when a property sits next to or inside a center with an anchor such as a grocery store or home improvement retailer. A strong anchor nearby can support the long-term appeal of the location if the property ever needs to be re-leased.