SAO PAULO, June 29, 2017 /PRNewswire/ -- SiiLA Brasil announces today the launch of GROCS, a revolutionary shopping center market analytics product for retailers, operators, and investors. The new GROCS product allows SiiLA Brasil subscribers to access retail occupancy costs, rental rates, new stock projections, custom data visualizations, and much more.
The term GROCS is derived from a retail property's Gross Rent Occupancy Costs, or GROCS ratio. This percentage is a simple and quick way to analyze retail performance, and is calculated based on the minimum and percentage rent paid by the tenants, plus all of the occupancy fees, divided by the total sales.
"For a healthy shopping center, the overall GROCS ratio should range between 12 and 15 percent. When the ratio exceeds 15 percent, it is a sign that occupancy costs are too high and not sustainable in the long run," according to Giancarlo Nicastro, CEO of SiiLA Brasil.
For example, the GROCS ratio for São Paulo's Class A shopping centers was 11.84 percent during Q1 2017, with a vacancy rate of 12.01 percent. During the same period, the GROCS ratio for Rio de Janeiro's Class A shopping centers was 8.24 percent, with a vacancy rate of 2.98 percent.
"Since Rio de Janeiro is a significantly smaller market, with limited ability to add new supply, the region maintains a low vacancy rate in spite of the difficult economic conditions. Moreover, Rio's low GROCS ratio means operators have the ability to command higher rents," explains Nicastro.
GROCS' shopping center research and market statistics encompass the entire country of Brazil, which is divided into seven submarkets: São Paulo, Rio de Janeiro, North, Northeast, Midwest, South, and Southeast.
The shopping centers are classified by a rating of A, B, or C, considering several factors, such as location, physical characteristics, tenant mix, accessibility, and average household income of its patrons.
"Considering the experience that SiiLA Brasil has in monitoring high-standard commercial office and logistics markets, the relationships we have forged with shopping mall operators, and the clear demand for this information, developing the GROCS module was a logical next step in the development of our platform. We are confident that GROCS will bring tremendous efficiency to Brazil's shopping center industry and this will be beneficial to retailers, investors, operators, and the economy as a whole," said Nicastro.
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SOURCE SiiLA Brasil