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%.