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How important is an anchor tenant to attracting further FDI to a location?

Why are anchor tenants considered so important for attracting FDI? And is there a downside to bringing in this kind of big business?

Securing the right anchor tenant can be hugely lucrative for a country or region’s economy. It not only generates significant capital investment and job creation, it can also attract a host of new companies drawn in by any initial success.

Anchor tenants can strengthen regional supply chains and, as they rarely relocate, offer a strong sense of employment security. With so many economic benefits it is easy to see why investment promotion agencies (IPAs) are so keen to attract them. However, is there a downside?

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