Anchors are synonymous with security. There are anchors for our souls, anchors for our communities and even anchors for investment portfolios. Today, however, we’re focusing on commercial real estate anchor tenants (or “anchor stores” as this situation is sometimes called).
Let’s take a look at anchor tenants and why CRE pros love them so much, as well as some tips for helping you acquire one (or more) yourself.
Tenants Who Anchor Your Portfolio
Anchor tenants do just what they sound like: they act as an anchor for your portfolio, whether all of your properties are in the same complex or not. According to SquareFoot, “an anchor tenant—sometimes also called a prime tenant, a draw tenant, or a key tenant—is the leading, featured, big-name business that rents office space in any given development, complex, or neighborhood. The anchor tenant typically pays lower rent than the other tenants and may get some say in how the rest of the center is rented out.”
How To Think About Anchor Tenants
While parents shouldn’t play favorites, favoritism among property managers and commercial real estate investors can prove to be a sustainable strategy. Think of anchor tenants as your most important tenants and tenants you can’t afford to lose. That’s why anchor tenants typically enjoy lower rent (as mentioned above) and other perks that unstable and/or non-ideal clients don’t.
In fact, some anchor tenants can dictate details like what stores are in the complex, what tenants are placed directly by them and have a vote in other important decisions as well. As with all CRE tenants, make sure everything is laid out clearly in the contract so you and the anchor tenant are on the same page and that your key tenants aren’t upset about anything.
How CRE Software Can Help
The only question is, how do you find these anchor tenants? Commercial real estate software is a great place to start, as you can filter prospects by your desired criteria and automate searches on the back end. You can stay on top of vacancies, manage multiple sites and perform other daily tasks while ensuring you are always ready to pursue anchor tenants when the opportunity presents itself. Build reports, collaborate and do everything you need to land those prized tenants.
If you’re ready to see how Quarem can help you land anchor tenants and other ideal tenants, request a demo today.