An ancillary tenant, often referred to as a satellite tenant, is a smaller, complementary retail tenant in a commercial property, such as a shopping centre or mall. Ancillary tenants typically occupy less square footage than anchor tenants and include various retail categories, such as specialty shops, service providers, and restaurants. They help create a diverse and attractive tenant mix, contributing to the overall appeal and functionality of the retail environment.
Ancillary tenants play a vital role in the success of a shopping centre or retail complex. Their significance includes:
Ancillary tenants typically exhibit the following characteristics:
Common examples of ancillary tenants in Australia include:
Consider a shopping centre in Melbourne that has several anchor tenants, including a major department store and a large supermarket. To enhance the shopping experience and attract a diverse customer base, the shopping centre includes various ancillary tenants such as a boutique clothing store, a popular café, a nail salon, and a fitness studio. These ancillary tenants provide complementary products and services, encouraging customers to spend more time and money at the shopping centre. The presence of these tenants enhances the overall appeal and functionality of the retail environment, contributing to the shopping centre’s success.
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Ancillary tenants are essential components of a successful shopping centre or retail complex. They provide a diverse range of products and services that complement anchor tenants, enhance the shopping experience, and attract a broader customer base. By understanding the role and importance of ancillary tenants, property owners and developers can create more attractive and successful retail environments.
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