Riyadh's retail genuine estate market is a vibrant and developing landscape, providing a variety of chances for savvy investors. Based on the detailed benchmarking report, here are some essential 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 malls like Granada Center Mall with a Gross Leasable Area (GLA) of around 100,000 m ², to smaller sized retail hubs like Boulevard Mall, boasting a GLA of around 8,000 m ². This variety accommodates a broad spectrum of consumer requirements and preferences.
Geographical Spread: Retail residential or commercial properties in Riyadh are not concentrated in a single area but are spread out throughout the city. This circulation enables a diverse financial investment approach, targeting various demographics and socio-economic sections.
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 suggests an appealing future for retail investments in the region.
Quality and Standards: The chosen residential or commercial properties for the research study are noted for their high standards and quality occupants. This aspect is important as it affects foot traffic, tenant retention, and overall residential or commercial property worth.
Catchment Areas
Catchment areas are a crucial element of retail genuine estate, especially for shopping malls, as they directly affect the potential success of these residential or commercial properties. In Riyadh's retail landscape, comprehending these areas is necessary for financiers.
Here's what the report reveals about catchment areas:
- Definition and Importance: A catchment area is the geographical area from which a shopping center or retail center draws its clients. It's considerable due to the fact that it affects foot traffic, sales potential, and ultimately, the profitability of the retail residential or commercial property.
- Granada Center Mall: This shopping center sticks out with its catchment area covering an impressive 40.5% of Riyadh's population. This high shows its significant 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 key player in Riyadh's retail landscape. Its substantial protection demonstrates its importance 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 significant destination 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, totaling up to 23.8% of Riyadh's total population. This suggests a strong devoted client base that mainly 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% 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 patterns is important for making educated financial investment decisions.
- Granada Center Mall: As of August 2022, this shopping center, being among the biggest in Riyadh, reveals a tenancy rate of 64%. It is very important to keep in mind that some parts of the shopping mall were under restoration at the time, which might have affected this figure.
- Riyadh Park Mall: This mall, presently the biggest in regards to Gross Leasable Area, has an excellent occupancy rate of 91.2%, indicating high tenant retention and constant customer traffic.
- Riyadh Gallery Mall: With an occupancy rate of 93.3%, this mall stands as another essential gamer in the market, reflecting a strong and stable occupant base.
- Al Nakheel Mall: This residential or commercial property, essential to the Arabian Center Group, reported an occupancy rate of 82.0%, showcasing its robust standing in the market.
- Lease Rates: While specific figures for lease rates per m ² annually aren't attended to each shopping mall, the report indicates that all the shopping centers included follow a similar pricing structure. This harmony recommends a market requirement, which can be a crucial factor for investors when examining the possible roi.
Quotation from the Report:
- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the second biggest mall in Riyadh based on the Gross Leasable Area." [Granada Center Mall]
- "Another large shopping mall in Riyadh. The occupancy is really 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 a successful retail investment in Riyadh's busy market. Here's an extensive 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 tactically situated. It boasts an acreage of 139,118 m TWO, providing ample area for a diverse range of retail and home entertainment choices.
- Size and Structure: The mall encompasses an overall built-up location of 241,220 m ² and a Gross Leasable Area (GLA) of 105,290 m TWO. This significant size is dispersed throughout 3 floorings, providing a large array of leasing 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 circulation permits a varied mix of retail, dining, and entertainment outlets. - Tenant Mix and Anchors: Riyadh Park Mall accommodates a significant variety of anchor shops, further enhancing its appeal. The diversity in its occupant mix deals with a broad spectrum of consumer preferences.
- Occupancy Rates: Since August 2022, the shopping mall had a high occupancy rate of 91.2%. This is indicative of its popularity amongst sellers and customers alike, suggesting a consistent stream of foot traffic and constant profits generation.
- Investment Appeal: Given its strategic place, large GLA, diverse renter mix, and high occupancy rate, Riyadh Park Mall represents a robust investment opportunity. Its success factors work as a guide for what investors should try to find in potential 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".
- "Land Area: 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 destination in Riyadh, provides valuable insights into the city's retail genuine estate market. Let's explore why it stands as a considerable case research study for prospective financiers:
- Prime Location: The shopping mall lies in Dammam, Ash Shohda, Ar Rawdah, tactically positioned to attract a large customer base.
- Extensive Area: Covering a land location of 421,330 m ², Granada Center Mall is one of the largest in Riyadh. It has a total built-up area 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 area is attentively dispersed over 2 floorings, boosting the shopping experience. The floor-wise distribution is as follows:. - First Floor: 60,027 m TWO
. -Ground Floor: 42,052 m TWO
. -Tenant Diversity: The shopping mall hosts a variety of occupants, consisting of regional and international brand names, which deals with a broad market, increasing its appeal as a retail destination.
- Occupancy Rate: Despite being partly under renovation, the shopping mall kept a 64% occupancy rate since August 2022. This figure is likely to improve post-renovation, making it an attractive prospect for future growth.
- Investment Potential: Granada Center Mall's size, area, and tenant mix position it as a strong competitor in Riyadh's retail market. Its big GLA and renovation strategies signal potential for value appreciation, making it an attractive option for financiers.
Quotation from the Report:
- "Address: Granada Center Mall, Dammam, Ash Shohda, Ar Rawdah".
- "Land Area: 421,330 m ² ".-" Total Built-up Area: 318,064 m TWO ".-" Gross Leasable Area: 102,080 m ² ".-" Occupancy (Aug 2022): 64% (some parts of the shopping mall under renovation)".
Case Study 3: Al Nakheel Mall
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Al Nakheel Mall, an essential retail residential or commercial property in Riyadh, presents itself as an intriguing case research study for financiers. Here's a comprehensive exploration 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 populous and upscale 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 ² and a Gross Leasable Area (GLA) of 81,322 m TWO. This extensive size helps with a varied series 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 TWO- This circulation caters to different retail and leisure experiences, interesting a broad customer base. - Tenant Diversity: Al Nakheel Mall's renter mix includes a range of local and worldwide brands, drawing in a varied group of consumers and guaranteeing stable footfall.
- Occupancy and Investment Potential: Since August 2022, the shopping mall reported a tenancy rate of 82.0%. This relatively high occupancy rate, integrated with its size and area, marks Al Nakheel Mall as a promising investment opportunity in the Riyadh retail market.
- Additional Considerations: The mall belongs to the Arabian Center Group, contributing to its trustworthiness and appeal. Its big GLA and diverse tenant mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.