So, you own a strip mall or office building and need to fill it with tenants. When you’re tenant shopping, you want to make sure you make sound decisions. Your success is closely linked. If your tenants are doing well in their business, they’ll pay rent on time, making your investment worthwhile. But, if you pick poor tenants who don’t draw in customers, you’re in trouble too. Chronic vacancy can put your real estate dreams down the tubes.
Anchor tenants promise to solve many of these problems. Attracting large crowds of shoppers, clients, or patrons, anchor tenants can make your mall or office building successful. They bring in the traffic so that other, smaller tenants can also succeed. Your local mall likely makes use of stores like JCPenney and Kohl’s as anchor tenants.
Do you need an anchor tenant too?
An anchor tenant can undoubtedly help make your property succeed. Not only will this tenant bring in customers, but it will boost the visibility of your property and also give other tenants the confidence to sign with you. So, yes, it’s essential to have an anchor tenant. However, it’s time to think outside the box.
With the recent decline in the popularity of department stores like Sears and K-Mart (hello, Amazon), anchor tenants for commercial real estate properties are changing. Many alternatives will make your property far more popular than these dinosaur stores.
What are some popular new anchor tenant ideas?
Mobile Phone Services
Businesses like Verizon and T-Mobile continue to attract customers in-store to purchase phones and set up plans. There, they can try products and speak to experts. Most people own smart phones, so anchoring commercial properties with providers will draw a diverse crowd.
Popular gyms can also get lots of foot traffic into your building. There’s no shortage of interest in exercise, so the right gym might get people moving inside.
Popular cafes and restaurants can also serve as anchors, bringing in loyal patrons over and over again. Places that serve craft beer, as well as unique, niche restaurants that will draw foot traffic are an excellent target.
Green and Public Spaces
This doesn’t qualify exactly as an anchor tenant, but rather, an anchor space. A fountain, park benches, garden beds, and other similar, attractive public spaces invite shoppers and patrons to stay in the area. The longer your customer stays in your space, the more purchases they’ll make. So, investing in a small public space that welcomes visitors may be worth your while to ensure the success of other tenants.
How To Sign An Anchor Tenant
How do you convince an anchor tenant to sign a lease on your property? Many landlords make exclusive deals with anchor tenants due to the many advantages they offer. You may also provide attractive rent and lease terms for the tenant. Also, some agreements include limits on what other types of tenants can lease in the building to limit competition.
Rely on MGR Property Management for Anchor Tenants
As an experienced property management company, we can ensure that you sign an excellent anchor tenant for your property. We can also help you make a favorable lease agreement that will meet both your needs and those of your anchor tenant.
Although not essential, an anchor tenant can bring lots to the table when setting up your commercial real estate property for success.
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