Riyadh's retail real estate market is a vibrant and developing landscape, offering a myriad of chances for savvy financiers. Based upon the comprehensive benchmarking report, here are some key dynamics forming this market:
Diversity in Residential Or Commercial Property Sizes: The market showcases a large range 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 retail hubs 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 location however are spread out across the city. This distribution permits a diverse investment technique, targeting different demographics and socio-economic sections.
Growth Prospects: The retail sector in Riyadh is growing, driven by factors such as increasing population, urbanization, and a shift in consumer spending routines. This development trajectory suggests a promising future for retail financial investments in the area.
Quality and Standards: The picked residential or commercial properties for the research study are noted for their high standards and quality occupants. This element is vital as it affects foot traffic, tenant retention, and total residential or commercial property worth.
Catchment Areas
Catchment areas are a critical element of retail genuine estate, especially for shopping centers, as they directly influence the potential success of these residential or commercial properties. In Riyadh's retail landscape, comprehending these areas is essential for investors.
Here's what the report exposes about catchment locations:
- Definition and Importance: A catchment area is the geographical area from which a shopping center or retail center draws its consumers. It's significant due to the fact that it affects foot traffic, sales capacity, and eventually, the profitability of the retail residential or commercial property.
- Granada Center Mall: This shopping center sticks out with its catchment location covering a remarkable 40.5% of Riyadh's population. This high portion suggests its substantial effect and reach within the city.
- Al Nakheel Mall: With a catchment location that incorporates 35% of the city's population, Al Nakheel Mall is another key player in Riyadh's retail landscape. Its significant coverage shows its significance as a retail location.
- Riyadh Park Mall: This mall has a catchment that consists of 32.1% of Riyadh's population, marking it as a significant 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 faithful consumer base that predominantly frequents this 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 greatest 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 one of the largest in Riyadh, reveals an occupancy rate of 64%. It's crucial to keep in mind that some parts of the shopping center were under restoration at the time, which may have impacted this figure.
- Riyadh Park Mall: This shopping center, currently the largest in terms of Gross Leasable Area, has an impressive tenancy rate of 91.2%, showing high occupant retention and consistent consumer traffic.
- Riyadh Gallery Mall: With an occupancy rate of 93.3%, this shopping center stands as another key gamer in the market, showing a strong and stable renter base.
- Al Nakheel Mall: This residential or commercial property, essential 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 each shopping center, the report suggests that all the malls included follow a comparable rates structure. This harmony recommends a market standard, which can be a vital aspect for investors when evaluating the possible return on financial investment.
Quotation from the Report:
- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the second biggest mall in Riyadh according to the Gross Leasable Area." [Granada Center Mall]
- "Another big shopping center in Riyadh. The tenancy is very 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 an extensive take a look at its characteristics, 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 an acreage of 139,118 m TWO, using ample area for a diverse range of retail and entertainment alternatives.
- Size and Structure: The shopping mall includes a total built-up area of 241,220 m two and a Gross Leasable Area (GLA) of 105,290 m TWO. This substantial size is dispersed throughout 3 floors, providing a huge variety of renting choices.
- Leasable Area Distribution: The leasable area is divided as follows:.
- First Floor: 38,499 m ²
. -Ground Floor: 63,687 m TWO
. -Basement: 3,103 m ²
. -This circulation enables a different mix of retail, dining, and entertainment outlets. - Tenant Mix and Anchors: Riyadh Park Mall accommodates a substantial number of anchor stores, further improving its appeal. The variety in its renter mix caters to a broad spectrum of customer choices.
- Occupancy Rates: As of August 2022, the mall had a high occupancy rate of 91.2%. This is a sign of its popularity amongst merchants and customers alike, suggesting a consistent stream of foot traffic and consistent income generation.
- Investment Appeal: Given its strategic place, substantial GLA, diverse renter mix, and high tenancy rate, Riyadh Park Mall represents a robust investment chance. Its success factors work as a guide for what investors should look for 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".
- "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 popular retail destination in Riyadh, provides valuable insights into the city's retail genuine estate market. Let's check out why it stands as a substantial case research study for possible financiers:
- Prime Location: The shopping mall is located in Dammam, Ash Shohda, Ar Rawdah, tactically positioned to bring in a large consumer base.
- Extensive Area: Covering an acreage of 421,330 m TWO, Granada Center Mall is among the biggest in Riyadh. It has a total built-up location of 318,064 m ² and a Gross Leasable Area (GLA) of 102,080 m TWO
. -Leasable Area and Structure: The mall's comprehensive leasable area is attentively distributed over 2 floors, boosting the shopping experience. The floor-wise distribution is as follows:. - First Floor: 60,027 m TWO
. -Ground Floor: 42,052 m ²
. -Tenant Diversity: The shopping mall hosts a variety of renters, consisting of regional and global brand names, which caters to a broad demographic, increasing its appeal as a retail location.
- Occupancy Rate: Despite being partly under remodelling, the shopping center preserved a 64% tenancy rate since August 2022. This figure is likely to improve post-renovation, making it an attractive prospect for future development.
- Investment Potential: Granada Center Mall's size, place, and occupant mix position it as a strong contender in Riyadh's retail market. Its big GLA and renovation strategies signal capacity for value gratitude, making it an attractive choice 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 TWO ".-" Gross Leasable Area: 102,080 m TWO ".-" Occupancy (Aug 2022): 64% (some parts of the shopping mall under renovation)".
Case Study 3: Al Nakheel Mall
Al Nakheel Mall, an essential retail residential or commercial property in Riyadh, emerges 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 mall benefits from its position in a populated and upscale area of Riyadh.
- Substantial Size and Offering: The shopping mall covers a land area of 238,769 m ² with a total built-up location of 299,448 m two and a Gross Leasable Area (GLA) of 81,322 m TWO. This extensive size assists in a varied series 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 distribution caters to different retail and leisure experiences, interesting a large consumer base. - Tenant Diversity: Al Nakheel Mall's tenant mix consists of a series of local and worldwide brands, bring in a varied group of consumers and guaranteeing constant tramp.
- Occupancy and Investment Potential: Since August 2022, the shopping center reported an occupancy rate of 82.0%. This fairly high tenancy 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 center belongs to the Arabian Center Group, including to its credibility and appeal. Its big GLA and diverse renter mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.
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