Riyadh's retail realty market is a vibrant and progressing landscape, using a huge selection of opportunities for savvy financiers. Based on the comprehensive benchmarking report, here are some key characteristics forming this market:
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Diversity in Residential Or Commercial Property Sizes: The marketplace showcases a wide variety of residential or commercial property sizes, from massive shopping malls like Granada Center Mall with a Gross Leasable Area (GLA) of around 100,000 m ², to smaller sized retail centers like Boulevard Mall, boasting a GLA of around 8,000 m ². This variety deals with a broad spectrum of customer requirements and preferences.
Geographical Spread: Retail residential or commercial properties in Riyadh are not concentrated in a single location but are spread across the city. This distribution permits for a different 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 spending habits. This development trajectory recommends a promising future for retail investments in the area.
Quality and Standards: The selected residential or commercial properties for the research study are noted for their high standards and quality occupants. This element is crucial as it influences foot traffic, tenant retention, and total residential or commercial property worth.
Catchment Areas
Catchment areas are a crucial aspect of retail property, particularly for malls, as they directly affect the potential success of these residential or commercial properties. In Riyadh's retail landscape, understanding these locations is vital for investors.
Here's what the report reveals about catchment locations:
- Definition and Importance: A catchment area is the geographical location from which a mall or retail center draws its customers. It's significant due to the fact that it affects foot traffic, sales capacity, and eventually, the success of the retail residential or commercial property.
- Granada Center Mall: This mall sticks out with its catchment location covering a remarkable 40.5% of Riyadh's population. This high portion indicates its substantial impact and reach within the city.
- Al Nakheel Mall: With a catchment location that includes 35% of the city's population, Al Nakheel Mall is another key gamer in Riyadh's retail landscape. Its substantial protection shows its value as a retail destination.
- Riyadh Park Mall: This mall has a catchment that consists of 32.1% of Riyadh's population, marking it as a major destination in the city's retail sector.
- Captive Population: Looking deeper into the numbers, Granada Center Mall has the greatest share of a captive population, amounting to 23.8% of Riyadh's overall population. This indicates a strong loyal client base that primarily frequents this 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% coverage."
- "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 tenancy trends is crucial for making informed financial investment decisions.
- Granada Center Mall: Since August 2022, this shopping center, being among the biggest in Riyadh, reveals an occupancy rate of 64%. It is very important to keep in mind that some parts of the mall were under remodelling at the time, which might have impacted this figure.
- Riyadh Park Mall: This shopping mall, presently the biggest in regards to Gross Leasable Area, has a remarkable occupancy rate of 91.2%, showing high occupant retention and consistent customer traffic.
- Riyadh Gallery Mall: With an occupancy rate of 93.3%, this mall stands as another crucial player in the market, reflecting a strong and stable occupant base.
- Al Nakheel Mall: This residential or commercial property, integral to the Arabian Center Group, reported a tenancy rate of 82.0%, showcasing its robust standing in the market.
- Lease Rates: While specific figures for lease rates per m two annually aren't offered for each mall, the report indicates that all the shopping centers consisted of follow a comparable pricing structure. This uniformity recommends a market standard, which can be a crucial aspect for investors when assessing the possible roi.
Quotation from the Report:
- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the second biggest shopping mall in Riyadh as per the Gross Leasable Area." [Granada Center Mall]
- "Another large shopping center in Riyadh. The occupancy is great at 93.3%." [Riyadh Gallery Mall]
- "An essential 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 investment in Riyadh's dynamic market. Here's a thorough look at its characteristics, making it a noteworthy case research study:
- Location and Area: Situated on Alamir Mohamed Ibn Saad Ibn Abdelaziz Road, Al Aqeek, Al Shimal, Riyadh Park Mall is tactically situated. It boasts an acreage of 139,118 m TWO, offering sufficient area for a diverse series of retail and home entertainment choices.
- Size and Structure: The shopping center includes a total built-up area of 241,220 m ² and a Gross Leasable Area (GLA) of 105,290 m TWO. This significant size is dispersed throughout 3 floors, offering a huge selection of leasing alternatives.
- Leasable Area Distribution: The leasable area 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 home entertainment outlets. - Tenant Mix and Anchors: Riyadh Park Mall accommodates a substantial number of anchor shops, even more enhancing its appeal. The variety in its tenant mix deals with a broad spectrum of consumer choices.
- Occupancy Rates: As of August 2022, the shopping mall had a high occupancy rate of 91.2%. This is indicative of its appeal among merchants and customers alike, suggesting a constant stream of foot traffic and consistent earnings generation.
- Investment Appeal: Given its tactical location, sizable GLA, varied occupant mix, and high occupancy rate, Riyadh Park Mall represents a robust financial investment chance. Its success factors function as a guide for what financiers must look for in possible 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, offers important insights into the city's retail real estate market. Let's check out why it stands as a considerable case study for prospective financiers:
- Prime Location: The shopping mall is located in Dammam, Ash Shohda, Ar Rawdah, tactically placed to draw in a broad customer base.
- Extensive Area: Covering an acreage of 421,330 m TWO, Granada Center Mall is among the largest in Riyadh. It has an overall built-up location of 318,064 m two and a Gross Leasable Area (GLA) of 102,080 m TWO
. -Leasable Area and Structure: The mall's substantial leasable location is attentively distributed over two floorings, enhancing the shopping experience. The floor-wise distribution is as follows:. - First Floor: 60,027 m ²
. -Ground Floor: 42,052 m TWO
. -Tenant Diversity: The mall hosts a variety of tenants, including local and global brand names, which caters to a broad demographic, increasing its appeal as a retail location.
- Occupancy Rate: Despite being partially under renovation, the mall preserved a 64% tenancy rate since August 2022. This figure is likely to improve post-renovation, making it an appealing prospect for future growth.
- Investment Potential: Granada Center Mall's size, place, and renter mix position it as a strong competitor in Riyadh's retail market. Its large GLA and remodelling strategies signal potential for worth appreciation, making it an enticing choice for investors.
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 shopping center under restoration)".
Case Study 3: Al Nakheel Mall
Al Nakheel Mall, an essential retail residential or commercial property in Riyadh, provides itself as an appealing case research study for investors. Here's an in-depth expedition of its functions:
- Strategic Location: Located on Othman Bin Affan Road, Abi Sofian Ibn Harb, Mugharazat, Al Olaya, this shopping center take advantage of its position in a populated and upscale location of Riyadh.
- Substantial Size and Offering: The shopping center covers a land location of 238,769 m ² with a total built-up location of 299,448 m ² and a Gross Leasable Area (GLA) of 81,322 m ². This extensive size facilitates a diverse variety of retail and leisure offerings.
- Leasable Area Across Floors:. - Second Floor: 20,767 m ²
. -First Floor: 58,463 m TWO
. Ground Floor: 2,091 m ²- This distribution accommodates different retail and leisure experiences, appealing to a large customer base. - Tenant Diversity: Al Nakheel Mall's renter mix consists of a variety of regional and global brand names, attracting a varied group of buyers and guaranteeing consistent footfall.
- Occupancy and Investment Potential: As of August 2022, the mall reported an occupancy rate of 82.0%. This relatively high tenancy rate, integrated with its size and place, marks Al Nakheel Mall as an appealing financial investment opportunity in the Riyadh retail market.
- Additional Considerations: The mall is part of the Arabian Center Group, adding to its reliability and appeal. Its large GLA and varied tenant mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.