Transcript:
Hey everybody, Joseph here with Eureka Business Group, and today we’re at a shopping center we manage. And if you see in the background behind me, April, it’s April. It’s pretty empty and it’s an opportunity to talk about what is an anchor and what it means to lose an anchor. So don’t worry, we didn’t lose an anchor.
Our anchor over there, the Guatemala restaurant is under renovation and they’re actually expanding to the next door suite. That’s why they’re not operating, which means look how empty it is. But on a regular day, they are very busy. They’re very popular and they drive a lot of customers to the shopping center that everybody of the other tenants are enjoying.
So just wanted to kind of share with you a little bit about how it looks like when your anchor is gone. Uh, lucky for us, they’re just gone temporarily, but this is the reality. If you have an anchor in your shopping center, it is a blessing and a risk at the same time. I am back in my car. It’s a little bit more quiet so we can finish the conversation.
So as I was saying, um, a blessing and a risk at the same time. So do I want an anchor or don’t I want an anchor in my shopping center? Um, the answer is. I want an anchor as long as it’s a strong, steady business. If it is a strong, steady business, they bring traffic to the shopping center. They create a synergy with the other businesses in the shopping center.
And it absolutely is a blessing. Yes, you take a risk that if one day they decide to move, you’re going to be empty all of the sudden, but most of the time, if the design is correct, you can take that bigger space and cut it into multiple units and have more tenants, or you can find a replacement anchor, whichever comes first, that’s okay too.
But at the very least, you will have multiple years of a lot of traffic into the shopping center because An anchor tenant usually has a lot of money invested in the space. So for them to get up and move is really, really hard. But it also means you have to be listening to their needs. So they reach out to us and say, Hey, look, we’re bursting at the scenes.
Our business is doing great. We really don’t want to leave because we like the location. We’ve been here for many years. But we need more space. So we had to work out deals and we had to move things around, um, in the shopping center in order to allow them to expand. So, uh, Blessing or Risk, I go with the Blessing.
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