Why is an anchor tenant critical to a shopping mall's success?

An anchor tenant is a key component of a shopping mall's success primarily because they have the capacity to draw a significant number of shoppers to the center. These tenants, which are typically large stores or well-known brands, attract customers not only for their offerings but also because shoppers often plan their visits around the experience of shopping at these popular destinations. This increased foot traffic benefits smaller retailers in the mall, as more visitors lead to higher chances of sales for all stores.

While factors like rent levels and storefront design may also play a role in a mall's overall appeal, the primary function of an anchor tenant is their ability to generate traffic. This characteristic is crucial, as it helps create a bustling shopping environment that attracts a diverse range of customers, ultimately contributing to the financial viability and success of the entire shopping center.