National tenant refers to a tenant that has a national footprint with locations throughout the US. The term is most frequently used in the context of retail properties. National tenants are typically those with a “household name” or that would likely be known to the general public. This contrasts from local tenants and regional tenants which have smaller footprints and may only be known to individuals within those areas. Examples of national tenants include McDonalds, Wal-Mart and Starbucks. Note that a national tenant may not necessarily be a credit tenant - although the terms are often used together, they are distinct concepts. Application of the national tenant concept may come into play with cotenancy clauses, loan covenants or attracting retail tenants to a property who require the presence of one or more national tenants in order to drive traffic to the property.
