Explore GROCS: the SiiLA Platform for Shopping Mall Investments
- Navigate the platform to analyze rent, sales, and occupancy costs.
Gross Rent Occupancy Costs, or simply GROCS, is a metric that assists shopping center investors in conducting a cost analysis of their operations. To obtain this metric, the rent value, plus the condominium and the promotion and advertising fund (FPP), are divided by sales, allowing for a GROCS analysis.
SiiLA, a hub for solutions in the commercial real estate market, has created a platform, named after the metric, specifically designed for investors. The central idea behind the platform is to gather information and performance analyses of stores in malls across Brazil, providing clients with a data-driven understanding of the performance of these assets. It covers over 600 establishments, with quarterly updated data and a history spanning over 5 years.
Comprehensive Sector Performance Monitoring
According to the GROCS platform, in the second quarter of 2023, the average sales price per square meter for Class A shopping centers reached R$ 3,353. For Class B and C centers, the figures were R$ 1,665.88/m² and R$ 1,834.91/m², respectively. An analysis of historical data from the platform reveals that current sales volumes have already surpassed pre-pandemic levels. For instance, in the fourth quarter of 2020, the sales volume for Class A properties in the country stood at R$ 2,142/m².
Recently, in an article by REsource, Multiplan revealed some strategies the company has been adopting to bring the public back to their malls! Read more about it here!
This surge in sales is a direct result of the return of consumers to shopping centers. As visitor footfall continues to rise, the SiiLA platform also tracks the GROCS rate, which has been on a downward trend. Starting from the third quarter of 2022, the indicator for Class A shopping centers in Brazil has dropped from 11.38% to 8.60%. For Class B developments, the GROCS rate has decreased from 12.06% to 9.36%, and for Class C centers, it has declined from 12.04% to 9.55%.
Exploring Diverse Markets:
The cities of São Paulo and Rio de Janeiro, due to their high concentration of malls, are separately mapped in addition to the Southeast region, which covers other cities in São Paulo and Rio de Janeiro states, as well as the states of Minas Gerais and Espírito Santo. The South, Midwest, North, and Northeast regions are also included in the mapping.
Within the platform, various analyses can be performed beyond GROCS. Occupancy costs for each region, average rents, sales, and vacancy rates can be accessed. Additionally, users can filter results by store type categories, social class, and demographic division. Subscribers to the solution also gain access to property profiles, providing information about gross leasable area (ABL), key occupants, and more.
Interested in gaining full access? Explore the solution today.
