Riyadh's retail real estate market is a dynamic and evolving landscape, offering a myriad of chances for smart investors. Based on the thorough benchmarking report, here are some crucial dynamics forming this market:
Diversity in Residential Or Commercial Property Sizes: The marketplace showcases a wide variety of residential or commercial property sizes, from massive malls like Granada Center Mall with a Gross Leasable Area (GLA) of approximately 100,000 m TWO, to smaller sized retail centers like Boulevard Mall, boasting a GLA of around 8,000 m TWO. This variety deals with a broad spectrum of consumer needs and preferences.
Geographical Spread: Retail residential or commercial properties in Riyadh are not concentrated in a single area but are spread throughout the city. This circulation permits a diverse financial investment technique, targeting different demographics and socio-economic segments.
Growth Prospects: The retail sector in Riyadh is growing, driven by aspects such as increasing population, urbanization, and a shift in customer costs routines. This growth trajectory suggests a promising future for retail investments in the area.
Quality and Standards: The selected residential or commercial properties for the study are noted for their high requirements and quality occupants. This element is important as it influences foot traffic, occupant retention, and overall residential or commercial property worth.
Catchment Areas
Catchment areas are a critical element of retail realty, particularly for shopping malls, as they straight affect the prospective success of these residential or commercial properties. In Riyadh's retail landscape, understanding these areas is essential for financiers.
Here's what the report exposes about catchment areas:
- Definition and Importance: A catchment area is the geographical location from which a shopping mall or retail center draws its customers. It's considerable due to the fact that it impacts foot traffic, sales potential, and ultimately, the profitability of the retail residential or commercial property.
- Granada Center Mall: This shopping center stands apart with its catchment location covering an impressive 40.5% of Riyadh's population. This high portion suggests its substantial 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 crucial player in Riyadh's retail landscape. Its considerable protection shows its importance as a retail location.
- Riyadh Park Mall: This shopping mall 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 greatest share of a captive population, amounting to 23.8% of Riyadh's overall population. This suggests a strong devoted client base that predominantly 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 property market, understanding lease rates and occupancy trends is essential for making informed investment choices.
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- Granada Center Mall: As of August 2022, this mall, being one of the biggest in Riyadh, shows an occupancy rate of 64%. It is necessary to keep in mind that some parts of the shopping mall were under renovation at the time, which may have affected this figure.
- Riyadh Park Mall: This shopping center, presently the biggest in terms of Gross Leasable Area, has an impressive occupancy rate of 91.2%, showing high tenant retention and constant customer traffic.
- Riyadh Gallery Mall: With a tenancy rate of 93.3%, this mall stands as another key gamer in the market, reflecting a strong and stable occupant base.
- Al Nakheel Mall: This residential or commercial property, important to the Arabian Center Group, reported an occupancy rate of 82.0%, showcasing its robust standing in the market.
- Lease Rates: While particular figures for lease rates per m two annually aren't attended to each shopping center, the report suggests that all the shopping malls included follow a similar prices structure. This harmony suggests a market requirement, which can be a vital element for financiers when evaluating the possible roi.
Quotation from the Report:
- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the 2nd biggest shopping center in Riyadh as per the Gross Leasable Area." [Granada Center Mall]
- "Another large mall in Riyadh. The occupancy is excellent at 93.3%." [Riyadh Gallery Mall]
- "A key 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 bustling market. Here's an in-depth take a look at its characteristics, making it a noteworthy 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, offering sufficient area for a diverse variety of retail and entertainment alternatives.
- Size and Structure: The shopping mall incorporates a total built-up location of 241,220 m two and a Gross Leasable Area (GLA) of 105,290 m ². This substantial size is distributed across three floorings, supplying a vast variety of leasing options.
- Leasable Area Distribution: The leasable location is divided as follows:.
- First Floor: 38,499 m TWO
. -Ground Floor: 63,687 m TWO
. -Basement: 3,103 m ²
. -This distribution enables a varied mix of retail, dining, and home entertainment outlets.
- Tenant Mix and Anchors: Riyadh Park Mall accommodates a considerable variety of anchor shops, further enhancing its appeal. The variety in its tenant mix deals with a broad spectrum of customer choices.
- Occupancy Rates: As of August 2022, the shopping mall had a high occupancy rate of 91.2%. This is indicative of its appeal amongst retailers and customers alike, suggesting a stable stream of foot traffic and consistent revenue generation.
- Investment Appeal: Given its tactical place, substantial GLA, diverse renter mix, and high tenancy rate, Riyadh Park Mall represents a robust financial investment opportunity. Its success factors work as a guide for what investors ought to try to find in prospective 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 prominent retail location in Riyadh, provides important insights into the city's retail property market. Let's check out why it stands as a substantial case research study for potential investors:
- Prime Location: The mall is located in Dammam, Ash Shohda, Ar Rawdah, tactically placed to attract a large client base.
- Extensive Area: Covering a land location of 421,330 m TWO, Granada Center Mall is among the largest in Riyadh. It has a total built-up location of 318,064 m two and a Gross Leasable Area (GLA) of 102,080 m TWO
. -Leasable Area and Structure: The shopping mall's extensive leasable area is thoughtfully dispersed over two floorings, boosting 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 range of tenants, including regional and worldwide brand names, which caters to a broad demographic, increasing its appeal as a retail destination.
- Occupancy Rate: Despite being partly under remodelling, the mall preserved a 64% occupancy rate since August 2022. This figure is likely to enhance post-renovation, making it an appealing prospect for future growth.
- Investment Potential: Granada Center Mall's size, area, and renter mix position it as a strong competitor in Riyadh's retail market. Its big GLA and renovation plans signal potential for worth appreciation, making it an enticing choice 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 shopping center under restoration)".
Case Study 3: Al Nakheel Mall
Al Nakheel Mall, an essential retail residential or commercial property in Riyadh, emerges as an interesting case study for financiers. Here's an in-depth expedition of its features:
- Strategic Location: Located on Othman Bin Affan Road, Abi Sofian Ibn Harb, Mugharazat, Al Olaya, this shopping mall take advantage of its position in a populous and wealthy location of Riyadh.
- Substantial Size and Offering: The mall covers an acreage of 238,769 m ² with an overall built-up area of 299,448 m ² 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 ²
. Ground Floor: 2,091 m TWO- This distribution deals with different retail and leisure experiences, attracting a broad consumer base.
- Tenant Diversity: Al Nakheel Mall's tenant mix consists of a variety of regional and worldwide brands, drawing in a diverse group of shoppers and guaranteeing stable step.
- Occupancy and Investment Potential: As of August 2022, the shopping center reported an occupancy rate of 82.0%. This relatively high occupancy rate, combined with its size and area, marks Al Nakheel Mall as an appealing financial investment chance in the Riyadh retail market.
- Additional Considerations: The shopping center belongs to the Arabian Center Group, contributing to its credibility and appeal. Its large GLA and varied occupant mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.
