In 2024, the shopping mall industry witnessed significant deal activity. In December, Multiplan (MULT3) sold 25% of Jundiaí Shopping (SP) to XP Malls (XPML11) for R$ 253.2 million, at a 7.39% cap rate.

Allos also made strategic moves, exiting the management of Via Parque Shopping. The new operator, Alqia—part of the HSI group, one of the ten largest owners in the sector—was announced as the new administrator of the property.

XP Malls (XPML11) also acquired stakes in three shopping malls for R$ 393 million. Two are in Rio de Janeiro (Shopping Tijuca and Carioca Shopping) and one in São Paulo (Plaza Sul Shopping). Allos was the seller, offloading his shares in these assets at a 7.5% cap rate.

Additionally, Multiplan invested R$ 66 million in Park Jacarepaguá, securing a stabilized cap rate of 8.59%.

The shopping mall landscape in Brazil is undergoing a transformation. Large-scale malls are becoming multifunctional hubs, extending beyond traditional retail. Many are diversifying their tenant mix to include gyms, supermarkets, healthcare clinics, and coworking spaces, creating a more comprehensive consumer experience.

This shift is accelerating the sector’s recovery. Data from the GROCS platform shows that the Gross Occupancy Cost Index (GROCS) reached its lowest level of the year, continuing a downward trend since Q2 2020. This reflects higher sales per square meter and the retail sector’s resurgence, driven by diversified spaces.

With a GROCS of 7.15%, Class A malls are leading the recovery, followed by Class B and C properties. Mega stores reported the lowest GROCS at 5.49%, while the Leisure sector had the highest at 23.24%, emphasizing the rising demand for experiences and services within malls.

• For more insights: SiiLA Data Highlights Consecutive Drops in GROCS Rates, Signaling a Strong Recovery in Brazil’s Shopping Malls 

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