Occupancy Cost Ratio (OCR) Benchmark Calculator
Monitor the financial health of your retail or restaurant establishment.
This system calculates your exact Occupancy Cost Ratio by dividing the combined annual rent and outgoings bills by your incoming gross store turnover to check options against industry specific benchmark ratios.
Frequently Asked Questions
What is a good occupancy cost ratio for retail in Australia?
In Australia, a sustainable occupancy cost ratio (OCR) typically ranges between 8% and 20% of gross retail sales depending on the category. Highly profitable major supermarket anchors operate at 3% to 5% OCR, whereas specialty fashion outlets in premium Westfield centres range from 15% to 22%.
How do you calculate Occupancy Cost Ratio (OCR)?
OCR is computed by dividing the total annual physical occupancy expenses (base gross rent, outgoings packages, promotional levies) by the operator's total annual gross store revenue.
Disclaimer: The estimations and rules detailed on this platform do not constitute legal or financial advice. Always verify metrics with a certified property professional, licensed accountant, or qualified commercial lawyer before entering into or executing any lease contract.