Who doesn’t want their property to be on the top in terms of investments? Obviously, everyone! Well, these days in order to influence prospective tenants to invest and enhance footfall of the property, a new strategy is working and becoming popular in the commercial real estate market is Anchor Tenant.
An anchor Tenant is a branded investor that nearly occupies a major part in your commercial property that not only enhances the popularity of the property but at the same time increases funding too. These days’ commercial property developers in order to lease out their properties are adopting this strategy with a positive approach. Under this, the anchor tenant leases a major space (40-50%) in the property that may include office space, retail space or shopping malls. However, it is completely dependent on Property size and number of tenants.
Importance of Anchor Tenant
Adds to the Popularity
An anchor tenant plays an important role in adding up to the popularity of any commercial development. Let say, a renowned international lifestyle brand leases a major portion in your commercial property. So, a developer can use this as the USP to attract other smaller brands to invest in the property.
According to a real estate expert, brands like Apple, popular restaurant chain, food court chain, a retail major like Big Bazaar, Pantaloons, Lifestyle, etc. all come in the category of an anchor tenant. These brands help in influencing the investment decision of other smaller or mid-level brands.
As said above, an anchor tenant plays a significant role in enhancing the popularity of commercial development. In the same way, it also enhances the credibility of that developer as well as the reputation of the development.
For example, a leading IT company like KPMG operates from Advant Navis Business Park, located on Noida Expressway. Now people may not have much idea about this business park but due to the presence of KPMG, the credibility of that business park got increased.
An anchor tenant also helps in easing the financial funding process for commercial development. For instance, if a big brand is associated with the property, then banks and financial institutions easily finance loan on the property and that too with a probability of a higher amount.
Bigger a commercial property, the number of anchor tenants needed to attract other smaller tenants increases. For instance, malls like DLF Mall of India comprise of bigger and international brands and tenants as compared to a small commercial complex.
Tips to Magnetise Anchor Tenants
So, if you want to increase footfall in your commercial development, you need to attract popular anchor tenants. You may offer them exclusive and never-heard-before deals like competitive rentals, attractive leasing agreement that pushes them to invest with you.
But, remember, in order to attract anchor tenant make sure, you don’t cut on your profit and rental price of the property.