An anchor tenant is a principal or main tenant in a shopping center, whose presence draws a significant number of customers to the retail establishment, benefiting smaller stores and positively influencing the center’s overall performance.
A Cotenancy Agreement in a shopping center lease allows a tenant to reduce rent, decrease payments for common area maintenance, or terminate the lease if other named tenants cease operations, also known as 'going dark'.
The term 'Go Dark' refers to the situation where a retail tenant ceases its operations in a leased space, while potentially continuing to pay rent. This can impact the viability and appeal of a shopping center as the absence of an anchor tenant may lead to a decrease in customer foot traffic and potentially cause other tenants to relocate or terminate their leases.
Percentage rent is an additional rent under a percentage lease agreement, often applied to retail property tenants. It is calculated as a percentage of gross sales that exceed a pre-determined base amount or break point.
A radius clause in a shopping center tenant's lease restricts the tenant from opening another store within a specified distance from the shopping center to prevent competition and reduced traffic to both the existing store and the shopping center. This is often crucial for anchor tenants and can also apply to ancillary tenants.
Satellite tenants in a shopping center or mall are those tenants other than the anchor tenants, typically smaller retailers that benefit from the foot traffic generated by the anchor stores.
