An ancillary tenant is a smaller, often specialty tenant within a shopping center, which contributes to the diversity and convenience of services available but does not generate as much foot traffic as an anchor tenant.
Commercial property refers to buildings or land intended to generate a profit, either from capital gain or rental income. This category includes a diverse array of properties such as shopping centers, office buildings, hotels, resorts, and restaurants.
A community shopping center, also known as a community center, is a retail property designed to serve a larger area than a neighborhood center, providing a wider array of goods and services.
A provision in a shopping center lease requiring a store to maintain minimum inventory levels and/or remain open certain hours, be adequately staffed, and keep the store name for a certain period of time.
A freestanding building is an independent structure not attached to any other structures, often distinct and self-standing.
Inline stores are smaller retail units lined up in a straight front or L shape within a shopping center. These differ from larger units like junior anchors and are usually home to neighborhood retailers.
The International Council of Shopping Centers (ICSC) is a prominent nonprofit association that supports the shopping center industry through a variety of resources, publications, and events focusing on financial, leasing, and legal matters.
Junior anchors are stores in a community or regional shopping center that are smaller than the anchor tenant, yet larger than the inline stores. They typically range from 15,000 to 40,000 square feet.
Operating covenants in shopping center retail store leases are requirements that lessors and retail store lessees must observe to provide uniformity in the shopping center’s operations.
An outparcel, also known as a pad site, refers to a piece of property on the perimeter of a larger development, such as a shopping center, that is designated for singular commercial use.
Overage in leases for retail stores is the additional amount to be paid based on gross sales that exceed a predetermined threshold in addition to the base rent, often seen in percentage 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 Power Center is a type of shopping center that primarily features a small number of large tenants, typically anchor or junior anchor tenants. These tenants often serve as 'category killers' in their respective markets, dominating the retail segment they represent.
A prime tenant in real estate is the tenant who occupies the most space within a shopping center or office building. These tenants are considered creditworthy and are essential in attracting additional customers or traffic.
A pylon sign is a freestanding sign commonly mounted on a pole or pylon structure, designed to be visible from a distance. These signs are often used to list tenants in a shopping center or to display business names and logos prominently along roadways.
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.
Reilly's Law of Retail Gravitation posits that larger shopping centers attract more customers compared to smaller retail spaces.
Retail gravitation refers to the ability of a shopping center to attract customers from distant areas, with larger centers having a greater drawing power.
A shadow anchor tenant is a large, well-known retail store near or adjacent to a shopping center's inline stores but is not a tenant of the shopping center itself. This store generates significant foot traffic to the neighboring retail spaces within the shopping center, resembling an anchor tenant in function without contributing rental income to the shopping center.
A Specialty (Shopping) Center is characterized by a distinctive environment typically anchored by restaurants, theaters, or other entertainment venues, offering unique merchandise and targeting both tourists and local shoppers.
Amounts paid by a tenant to a landlord for the tenant’s share of expenses, typically encountered in net leases and leases with stop clauses. These payments help cover specific property-related costs such as common area maintenance, property taxes, and utility expenses.
