AVERAGE EFFORT RATES (%) BY TENANT CATEGORY
One of the most important profitability indices is an effort rate. The ratio is defined as the
relationship between rent and service charges vs. turnover. According to CBRE’s database
the average effort rate is at 14.5% and ranges depending on the tenant’s category as well
as the size of the city and where the subject shopping centre is located.
The highest effort rate is registered by entertainment brands, multiplex cinemas as well as
tenants from the accessories & gifts and children’s fashion & toys categories. Conversely,
the lowest effort rate is recorded by grocery stores and multimedia brands.
The higher the effort rate, the greater the occupancy cost for tenants. This could cause
retailers to struggle with covering occupation costs.
In the case of tenants representing electronic equipment, an effort ratio at the level
of about 5% is considered as healthy, due to the fact, that such tenants operate on low
0% 5% 10% 15% 20% 25% 30% 35%
Accessories & Gifts
Children Fashion & Toys
Entertainment & Cinema
Health & Beauty
Homeware & Electronics
Restaurants & Cafes
Shoes & Leather
Source: CBRE, 2016
© 2016 CBRE