Glossary Topic: Tenants & Credit

A large, well-known tenant that drives traffic to a shopping center and supports leasing of the surrounding space.

A lease guarantee backed by the parent company rather than a franchisee or subsidiary; generally the stronger credit.

A tenant rated by an agency such as S&P or Moody’s, typically at investment grade.

A location the tenant has vacated while continuing to pay rent under the lease.

A lease guaranteed by a franchise operator rather than the brand; strength depends on the operator’s size and financials.

The entity or individual legally responsible for lease payments if the tenant defaults.

A credit rating of BBB- or higher from S&P (Baa3 or higher from Moody’s), signaling lower default risk.

A freestanding pad site at the edge of a shopping center — common for quick-service restaurants and banks.