Riyadh's retail real estate market is a lively and progressing landscape, providing a huge selection of opportunities for smart financiers. Based upon the extensive benchmarking report, here are some essential characteristics forming this market:
Diversity in Residential Or Commercial Property Sizes: The marketplace showcases a large range of residential or commercial property sizes, from large-scale shopping malls like Granada Center Mall with a Gross Leasable Area (GLA) of around 100,000 m TWO, to smaller retail centers like Boulevard Mall, boasting a GLA of around 8,000 m TWO. This variety caters to a broad spectrum of customer requirements and preferences.
Geographical Spread: Retail residential or commercial properties in Riyadh are not concentrated in a single area however are spread out throughout the city. This distribution enables a varied financial investment method, targeting various 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 spending routines. This growth trajectory recommends an appealing future for retail financial investments in the area.
Quality and Standards: The selected residential or commercial properties for the study are kept in mind for their high requirements and quality occupants. This aspect is crucial as it influences foot traffic, occupant retention, and total residential or commercial property value.
Catchment Areas
Catchment locations are a crucial aspect of retail genuine estate, particularly for shopping malls, as they directly influence the possible success of these residential or commercial properties. In Riyadh's retail landscape, comprehending these locations is necessary for financiers.
Here's what the report reveals about catchment locations:
- Definition and Importance: A catchment location is the geographical location from which a shopping mall or retail center draws its consumers. It's substantial because it affects foot traffic, sales capacity, and ultimately, the profitability of the retail residential or commercial property.
- Granada Center Mall: This shopping mall sticks out with its catchment area covering an exceptional 40.5% of Riyadh's population. This high portion suggests its substantial effect 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 essential gamer in Riyadh's retail landscape. Its significant protection demonstrates its value as a retail destination.
- Riyadh Park Mall: This shopping center has a catchment that includes 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 greatest share of a captive population, totaling up to 23.8% of Riyadh's total population. This suggests a strong devoted client base that mainly frequents this shopping mall over others.
Quotation from the Report:
solarbird.net
- "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 educated financial investment choices.
- Granada Center Mall: Since August 2022, this shopping mall, being one of the biggest in Riyadh, reveals an occupancy rate of 64%. It is necessary to keep in mind that some parts of the mall were under remodelling at the time, which might have affected this figure.
- Riyadh Park Mall: This shopping mall, currently the largest in regards to Gross Leasable Area, has an outstanding occupancy rate of 91.2%, indicating high tenant retention and consistent consumer traffic.
- Riyadh Gallery Mall: With an occupancy rate of 93.3%, this shopping mall stands as another essential player in the market, reflecting a strong and stable renter 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 each year aren't attended to each shopping mall, the report shows that all the malls consisted of follow a similar rates structure. This harmony recommends a market requirement, which can be an important element for investors when evaluating the prospective return on financial investment.
Quotation from the Report:
transworldexpress.org
- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the second largest mall in Riyadh according to the Gross Leasable Area." [Granada Center Mall]
- "Another big shopping mall in Riyadh. The occupancy is great 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 an effective retail financial investment in Riyadh's dynamic market. Here's an extensive look at its qualities, making it a notable case study:
- Location and Area: Situated on Alamir Mohamed Ibn Saad Ibn Abdelaziz Road, Al Aqeek, Al Shimal, Riyadh Park Mall is tactically located. It boasts an acreage of 139,118 m TWO, using ample space for a varied variety of retail and entertainment alternatives.
- Size and Structure: The shopping mall includes a total built-up location of 241,220 m ² and a Gross Leasable Area (GLA) of 105,290 m TWO. This significant size is distributed throughout 3 floors, supplying a large range of renting alternatives.
- Leasable Area Distribution: The leasable area is divided as follows:.
- First Floor: 38,499 m TWO
. -Ground Floor: 63,687 m TWO
. -Basement: 3,103 m TWO
. -This distribution permits for a varied mix of retail, dining, and home entertainment outlets. - Tenant Mix and Anchors: Riyadh Park Mall accommodates a substantial variety of anchor stores, even more enhancing its appeal. The diversity in its tenant mix accommodates a broad spectrum of customer preferences.
- Occupancy Rates: As of August 2022, the mall had a high tenancy rate of 91.2%. This is indicative of its appeal amongst merchants and consumers alike, recommending a consistent stream of foot traffic and constant income generation.
- Investment Appeal: Given its strategic place, substantial GLA, varied tenant mix, and high tenancy rate, Riyadh Park Mall represents a robust financial investment opportunity. Its success factors work as a guide for what investors must look for in possible retail residential or commercial property 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 prominent retail location in Riyadh, offers important insights into the city's retail realty market. Let's explore why it stands as a significant case study for prospective investors:
- Prime Location: The shopping mall is situated in Dammam, Ash Shohda, Ar Rawdah, tactically placed to draw in a broad client base.
- Extensive Area: Covering an acreage of 421,330 m TWO, Granada Center Mall is one of the largest in Riyadh. It has a total built-up area of 318,064 m ² and a Gross Leasable Area (GLA) of 102,080 m ²
. -Leasable Area and Structure: The mall's comprehensive leasable location is thoughtfully dispersed over 2 floors, boosting the shopping experience. The floor-wise circulation is as follows:. - First Floor: 60,027 m TWO
. -Ground Floor: 42,052 m ²
. -Tenant Diversity: The mall hosts a range of renters, consisting of local and global brand names, which deals with a broad demographic, increasing its appeal as a retail location.
- Occupancy Rate: Despite being partly under remodelling, the shopping mall maintained a 64% occupancy rate as of August 2022. This figure is likely to improve post-renovation, making it an appealing possibility for future development.
- Investment Potential: Granada Center Mall's size, location, and renter mix position it as a strong contender in Riyadh's retail market. Its big GLA and renovation plans signal capacity for value appreciation, making it an enticing alternative for financiers.
Quotation from the Report:
- "Address: Granada Center Mall, Dammam, Ash Shohda, Ar Rawdah".
- "Acreage: 421,330 m ² ".-" Total Built-up Area: 318,064 m ² ".-" Gross Leasable Area: 102,080 m TWO ".-" Occupancy (Aug 2022): 64% (some parts of the mall under remodelling)".
Case Study 3: Al Nakheel Mall
Al Nakheel Mall, a key retail residential or commercial property in Riyadh, presents itself as an appealing case study for investors. Here's a detailed exploration of its functions:
- Strategic Location: Located on Othman Bin Affan Road, Abi Sofian Ibn Harb, Mugharazat, Al Olaya, this shopping mall gain from its position in a populated and wealthy area of Riyadh.
- Substantial Size and Offering: The mall covers a land location of 238,769 m ² with a total area of 299,448 m ² and a Gross Leasable Area (GLA) of 81,322 m TWO. This extensive size facilitates a diverse variety of retail and leisure offerings.
- Leasable Area Distribution Across Floors:. - Second Floor: 20,767 m TWO
. -First Floor: 58,463 m ²
. Ground Floor: 2,091 m ²- This distribution accommodates various retail and leisure experiences, attracting a large customer base. - Tenant Diversity: Al Nakheel Mall's occupant mix includes a series of regional and worldwide brands, drawing in a varied group of buyers and making sure constant tramp.
- Occupancy and Investment Potential: Since August 2022, the shopping center reported a tenancy rate of 82.0%. This relatively high occupancy rate, integrated with its size and place, marks Al Nakheel Mall as a promising investment chance in the Riyadh retail market.
- Additional Considerations: The mall becomes part of the Arabian Center Group, including to its credibility and appeal. Its large GLA and diverse tenant mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.