Riyadh's retail real estate market is a lively and developing landscape, providing a huge selection of chances for smart financiers. Based on the comprehensive benchmarking report, here are some key characteristics shaping this market:
Diversity in Residential Or Commercial Property Sizes: The marketplace showcases a vast array of residential or commercial property sizes, from large-scale shopping malls like Granada Center Mall with a Gross Leasable Area (GLA) of approximately 100,000 m TWO, to smaller retail hubs like Boulevard Mall, boasting a GLA of around 8,000 m TWO. This diversity deals with a broad spectrum of consumer needs and choices.
Geographical Spread: Retail residential or commercial properties in Riyadh are not concentrated in a single location but are spread out across the city. This distribution permits a varied investment approach, targeting different demographics and socio-economic sectors.
Growth Prospects: The retail sector in Riyadh is growing, driven by aspects such as increasing population, urbanization, and a shift in consumer costs routines. This growth trajectory recommends a promising future for retail financial investments in the area.
Quality and Standards: The chosen residential or commercial properties for the research study are kept in mind for their high standards and quality tenants. This element is vital as it influences foot traffic, occupant retention, and general residential or commercial property worth.
Catchment Areas
Catchment locations are a critical element of retail realty, particularly for shopping centers, as they directly affect the potential success of these residential or commercial properties. In Riyadh's retail landscape, understanding these areas is essential for investors.
Here's what the report reveals about catchment areas:
- Definition and Importance: A catchment location is the geographical location from which a mall or retail center draws its clients. It's significant due to the fact that it affects foot traffic, sales capacity, and ultimately, the success of the retail residential or commercial property.
- Granada Center Mall: This shopping center sticks out with its catchment area covering a remarkable 40.5% of Riyadh's population. This high percentage shows its significant impact and reach within the city.
- Al Nakheel Mall: With a catchment area that encompasses 35% of the city's population, Al Nakheel Mall is another key gamer in Riyadh's retail landscape. Its considerable coverage demonstrates its importance as a retail location.
- Riyadh Park Mall: This shopping center has a catchment that consists of 32.1% of Riyadh's population, marking it as a major attraction in the city's retail sector.
- Captive Population: Looking much deeper into the numbers, Granada Center Mall has the highest share of a captive population, amounting to 23.8% of Riyadh's total population. This suggests a strong faithful client base that mainly frequents this shopping mall over others.
Quotation from the Report:
- "The Granada Center Mall covers 40.5% of the population."
- "Al Nakheel Mall covers 35% of the population followed by Riyadh Park Mall with 32.1% protection."
- "The Granada Center Mall has the highest share of captive population of Riyadh City with 23.8%.".
Lease Rates and Occupancy Trends
In the Riyadh retail realty market, comprehending lease rates and occupancy trends is essential for making informed investment decisions.
- Granada Center Mall: Since August 2022, this shopping mall, being among the largest in Riyadh, shows a tenancy rate of 64%. It's crucial to keep in mind that some parts of the shopping mall were under restoration at the time, which may have impacted this figure.
- Riyadh Park Mall: This shopping center, currently the biggest in terms of Gross Leasable Area, has an outstanding occupancy rate of 91.2%, indicating high occupant retention and constant consumer traffic.
- Riyadh Gallery Mall: With a tenancy rate of 93.3%, this mall stands as another crucial gamer in the market, showing a strong and steady occupant base.
- Al Nakheel Mall: This residential or commercial property, important to the Arabian Center Group, reported a tenancy rate of 82.0%, showcasing its robust standing in the market.
- Lease Rates: While particular figures for lease rates per m ² annually aren't offered for each mall, the report indicates that all the shopping centers consisted of follow a comparable prices structure. This harmony recommends a market requirement, which can be an important factor for investors when assessing the possible return on investment.
Quotation from the Report:
- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the 2nd biggest shopping center in Riyadh based on the Gross Leasable Area." [Granada Center Mall]
- "Another large shopping center in Riyadh. The tenancy is excellent at 93.3%." [Riyadh Gallery Mall]
- "A crucial residential or commercial property for the Arabian Center Group (Al Hukair Group)." [Al Nakheel Mall]
Investment Opportunities: Case Studies
Case Study 1: Riyadh Park Mall
Riyadh Park Mall stands as a shining example of a successful retail financial investment in Riyadh's dynamic market. Here's a thorough take a look at its attributes, making it a notable case research study:
- Location and Area: Situated on Alamir Mohamed Ibn Saad Ibn Abdelaziz Road, Al Aqeek, Al Shimal, Riyadh Park Mall is strategically located. It boasts a land area of 139,118 m TWO, using ample area for a diverse variety of retail and home entertainment options.
- Size and Structure: The shopping mall incorporates an overall built-up location of 241,220 m ² and a Gross Leasable Area (GLA) of 105,290 m TWO. This considerable size is distributed across 3 floors, supplying a large array of renting alternatives.
- Leasable Area Distribution: The leasable location is divided as follows:.
- First Floor: 38,499 m TWO
. -Ground Floor: 63,687 m ²
. -Basement: 3,103 m ²
. -This distribution permits a different mix of retail, dining, and entertainment outlets. - Tenant Mix and Anchors: Riyadh Park Mall accommodates a substantial number of anchor shops, further its appeal. The variety in its occupant mix caters to a broad spectrum of customer preferences.
- Occupancy Rates: Since August 2022, the shopping mall had a high occupancy rate of 91.2%. This is a sign of its popularity among sellers and customers alike, recommending a constant stream of foot traffic and consistent revenue generation.
- Investment Appeal: Given its strategic location, sizable GLA, varied tenant mix, and high occupancy rate, Riyadh Park Mall represents a robust investment chance. Its success factors act as a guide for what investors need to search for in potential retail residential or commercial property financial investments in Riyadh.
Quotation from the Report:
- "Address: Parcel No 418, Riyadh Park Mall, Alamir Mohamed Ibn Saad Ibn Abdelaziz Road, Al Aqeek, Al Shimal".
- "Acreage: 139,118 m2".
- "Total Built-up Area: 241,220 m2".
- "Gross Leasable Area: 105,290 m2".
- "Occupancy (Aug 2022): 91.2%".
Case Study 2: Granada Center Mall
Granada Center Mall, a popular retail location in Riyadh, provides valuable insights into the city's retail realty market. Let's check out why it stands as a considerable case research study for possible investors:
- Prime Location: The shopping center lies in Dammam, Ash Shohda, Ar Rawdah, tactically positioned to bring in a broad client base.
- Extensive Area: Covering an acreage of 421,330 m ², Granada Center Mall is among the biggest in Riyadh. It has an overall built-up location of 318,064 m ² and a Gross Leasable Area (GLA) of 102,080 m TWO
. -Leasable Area and Structure: The shopping mall's substantial leasable location is attentively dispersed over two floorings, enhancing the shopping experience. The floor-wise circulation is as follows:. - First Floor: 60,027 m ²
. -Ground Floor: 42,052 m TWO
. -Tenant Diversity: The shopping mall hosts a range of occupants, including regional and global brand names, which caters to a broad demographic, increasing its appeal as a retail destination.
- Occupancy Rate: Despite being partly under renovation, the mall preserved a 64% occupancy rate as of August 2022. This figure is likely to enhance post-renovation, making it an attractive possibility for future development.
- Investment Potential: Granada Center Mall's size, area, and renter mix position it as a strong contender in Riyadh's retail market. Its large GLA and restoration plans signal capacity for worth appreciation, making it an appealing option for financiers.
Quotation from the Report:
- "Address: Granada Center Mall, Dammam, Ash Shohda, Ar Rawdah".
- "Land Area: 421,330 m TWO ".-" Total Built-up Area: 318,064 m ² ".-" Gross Leasable Area: 102,080 m TWO ".-" Occupancy (Aug 2022): 64% (some parts of the shopping mall under restoration)".
Case Study 3: Al Nakheel Mall
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Al Nakheel Mall, a crucial retail residential or commercial property in Riyadh, emerges as an appealing case research study for investors. Here's an in-depth exploration of its features:
- Strategic Location: Located on Othman Bin Affan Road, Abi Sofian Ibn Harb, Mugharazat, Al Olaya, this shopping center gain from its position in a populated and wealthy area of Riyadh.
- Substantial Size and Offering: The mall covers an acreage of 238,769 m two with a total built-up location of 299,448 m two and a Gross Leasable Area (GLA) of 81,322 m ². This substantial size helps with a varied variety of retail and leisure offerings.
- Leasable Area Distribution Across Floors:. - Second Floor: 20,767 m ²
. -First Floor: 58,463 m TWO
. Ground Floor: 2,091 m TWO- This circulation deals with different retail and leisure experiences, appealing to a large customer base. - Tenant Diversity: Al Nakheel Mall's renter mix includes a series of local and international brands, attracting a varied group of buyers and making sure constant tramp.
- Occupancy and Investment Potential: Since August 2022, the mall reported a tenancy rate of 82.0%. This fairly high occupancy rate, integrated with its size and location, marks Al Nakheel Mall as an appealing investment opportunity in the Riyadh retail market.
- Additional Considerations: The shopping mall is part of the Arabian Center Group, contributing to its reliability and appeal. Its big GLA and varied occupant mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.