Glossary

Anchor Replacement (Substitution) Right

Also known as: Substitute anchor right, Comparable replacement clause

A landlord's contractual right to satisfy a named anchor or co-tenancy requirement by installing a comparable substitute tenant, rather than being limited to curing only by re-securing the original named anchor.

Because a departed anchor's exact identity is often impossible to replicate — a specific department store or grocery banner may no longer exist in the market at all — landlords negotiate for the right to satisfy ongoing co-tenancy obligations with a 'comparable' replacement, defined by criteria such as minimum square footage, credit rating, use category, and sometimes a required list of acceptable substitute names agreed upon at lease signing. Tenants scrutinize the comparability standard closely, since a landlord's aggressive interpretation of 'comparable' (installing a much lower-traffic use in a former department store box, for example) can technically cure a co-tenancy failure on paper while doing little to restore the actual foot traffic the tenant bargained for, making the specificity of the replacement criteria one of the more consequential drafting points in the entire co-tenancy clause.