Power Center
A power center is a large multi-tenant retail center (typically 250,000–750,000 square feet) anchored by three or more big-box retailers, often with peripheral pad sites for restaurants and service retailers.
What it means
Power centers combine multiple national anchor tenants (TJMaxx, Ross, PetSmart, Best Buy, Dick's, etc.) in a single center, typically on a large suburban site near major arterial roads. Leases are typically NNN with the anchors on long-term commitments and smaller shop spaces on shorter terms.
Power center economics depend heavily on anchor tenant health and co-tenancy clauses. If a major anchor closes, the smaller shop tenants may have rights under co-tenancy provisions to reduce rent or terminate.
Related terms
Keep reading