Maximizing Anchor Tenant Value

Why Anchor Tenants Still Matter in 2025

Anchor tenants remain essential to shopping center performance, but their value extends far beyond foot traffic. In today’s retail environment—defined by hybrid shopping, experiential preferences, and evolving consumer behavior—anchors shape leasing velocity, financing terms, and long-term NOI.

This article explores how landlords can maximize anchor value by focusing on strategic alignment, optimized lease structures, and the broader ecosystem impact on small tenant success.

The Ripple Effect: Anchor Tenant Impact on NOI

A well-matched anchor tenant can elevate an entire shopping center. Their presence boosts visibility, increases traffic, and provides a foundation of stability that smaller tenants rely on. For landlords, this translates into:

• Higher lease rates for nearby units
• Improved tenant retention
• Favorable financing terms due to reduced risk perception

According to ICSC, grocery-anchored centers consistently outperform their unanchored peers in both traffic and revenue. But the true opportunity isn’t just securing a name-brand tenant—it’s leveraging the anchor's presence to support a thriving, synergistic mix that maximizes NOI across the property.

The goal isn't occupancy—it’s ecosystem.

Beyond the Lease: Negotiating Value-Added Anchor Terms

The value of an anchor tenant is not fixed at the moment the lease is signed. Savvy landlords structure leases to maximize long-term upside—not just fill space. Beyond base rent, the right lease terms can align the anchor’s success with the property’s overall performance.

Consider incorporating value-added provisions such as:

• Co-marketing commitments to promote the center and support smaller tenants
• Flexible exclusivity clauses that protect the anchor’s interests without stifling creative leasing
• Shared common area maintenance (CAM) structures that ensure anchors contribute fairly to operational and maintenance costs
• Data sharing agreements where anchors provide traffic or sales data that can support leasing and repositioning efforts

Well-crafted lease terms can transform an anchor from a fixed feature into a collaborative force—one that strengthens the surrounding mix, reinforces the center’s identity, and plays an active role in long-term growth.

This level of intentionality requires not only strong negotiation, but also a clear understanding of what each anchor brings to the table beyond their square footage.

Anchor Tenant Fit: It’s Not Just About Size

The biggest name or largest footprint doesn’t always translate to the best outcome. A successful anchor tenant is one that reinforces the shopping center’s identity, aligns with community demographics, and supports a complementary tenant mix.

Considerations for evaluating fit:

• Customer overlap – Does the anchor draw the same audience that smaller tenants want to reach?
• Brand synergy – Is the anchor aligned with the experience or lifestyle the center aims to deliver?
• Tenant support – Will the anchor’s traffic patterns flow through the center in a way that benefits neighboring tenants?

For example, pairing a premium fitness chain with health-focused cafes, apparel brands, and wellness providers can create a cohesive ecosystem. The same square footage leased to an off-price big-box retailer might deliver traffic, but not necessarily the right traffic for long-term value.

Recent analysis by Shopping Center Business emphasizes this point—showing that the most successful redevelopments prioritize tenant compatibility over brand recognition. Fit matters more than fame when it comes to sustainable NOI.

Maximizing anchor value means thinking beyond occupancy and toward intentionality—ensuring the tenant contributes to the center’s strategic positioning and long-term NOI.

Adaptive Reuse of Anchor Spaces

When an anchor tenant departs, it can feel like a major setback—but it’s also one of the most powerful repositioning opportunities a landlord can leverage. Instead of pursuing a one-to-one replacement, consider reimagining the space to better reflect market demand.

Successful strategies include:

• Subdividing large boxes into multiple smaller retail, medical, or service-oriented spaces
• Repositioning for experience with gyms, food halls, entertainment concepts, or co-working providers
• Introducing public-facing amenities such as community centers, municipal services, or event spaces

Retail centers across the country have seen success with this model. For instance, the redevelopment of a former Sears store at Westfield Oakridge Mall in San Jose into a multi-tenant format—including a movie theater and dining options—significantly increased traffic and dwell time, according to reporting from Chain Store Age.

By thinking creatively and aligning space reuse with evolving consumer habits, landlords can transform anchor vacancies into NOI-enhancing assets. The key is flexibility: the willingness to break from old models and create value in new forms.

Leveraging Anchor Performance Data

Understanding how your anchor tenant is performing isn’t just useful—it’s essential. Data on foot traffic, sales trends (when shared), and customer dwell time can all reveal whether your anchor is fulfilling its role in driving broader center performance.

Key performance indicators to track:

• Traffic volume and flow – Does the anchor bring in consistent, high-quality foot traffic?
• Cross-shop activity – Are anchor visitors patronizing other tenants?
• Anchor-adjacent sales – Are tenants in proximity seeing a boost from the anchor’s draw?

This data can inform decisions on:

• Tenant mix adjustments
• Marketing and promotional partnerships
• Redevelopment priorities

While not all anchors share sales data, landlords can turn to tools like mobile location analytics and anonymized traffic counters to build a performance picture. A Placer.ai case study shows how analyzing foot traffic data can help identify underutilized anchors—or spotlight opportunities to support high-performing ones with strategic leasing around them.

Anchor performance should be an active part of the asset management strategy—tracked, analyzed, and used to drive leasing, marketing, and reinvestment decisions.

Conclusion: Unlocking Anchor Potential in a Changing Market

Anchor tenants remain a foundational element of shopping center success—but their true potential lies in how they’re integrated into the broader strategy. Landlords who move beyond the basics of occupancy and rent to embrace alignment, data, adaptability, and intentionality will unlock the full value these tenants can bring.

Whether filling a new space or reassessing an existing one, the right anchor strategy can transform a center’s trajectory.‍

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CRE 360 can help evaluate anchor strategies, assess tenant mix alignment, and identify untapped value within your portfolio. Let’s turn your anchor relationships into performance drivers.

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