Riyadh's retail property market is a dynamic and progressing landscape, offering a variety of chances for smart financiers. Based upon the comprehensive benchmarking report, here are some key characteristics shaping this market:
Diversity in Residential Or Commercial Property Sizes: The market showcases a large range of residential or commercial property sizes, from large-scale shopping centers 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 ². This variety accommodates a broad spectrum of consumer requirements and choices.
Geographical Spread: Retail residential or commercial properties in Riyadh are not focused in a single area however are spread out across the city. This circulation enables a different investment method, targeting different 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 customer costs routines. This development trajectory suggests an appealing future for retail financial investments in the region.
Quality and Standards: The picked residential or commercial properties for the study are noted for their high standards and quality tenants. This element is crucial as it influences foot traffic, renter retention, and overall residential or commercial property worth.
Catchment Areas
Catchment locations are a crucial element of retail property, especially for malls, as they directly affect 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 reveals about catchment locations:
- Definition and Importance: A catchment location is the geographical area from which a shopping mall or retail center draws its consumers. It's significant since it affects foot traffic, sales capacity, and eventually, the success of the retail residential or commercial property.
- Granada Center Mall: This shopping mall sticks out with its catchment area covering an amazing 40.5% of Riyadh's population. This high portion shows its significant impact and reach within the city.
- Al Nakheel Mall: With a catchment area that incorporates 35% of the city's population, Al Nakheel Mall is another key gamer in Riyadh's retail landscape. Its significant coverage 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 tourist attraction 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 indicates a strong devoted client base that predominantly frequents this shopping 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 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 tenancy trends is vital for making informed investment decisions.
- Granada Center Mall: Since August 2022, this shopping mall, being one of the largest in Riyadh, reveals an occupancy rate of 64%. It is very important to note that some parts of the shopping mall were under renovation at the time, which may have impacted this figure.
- Riyadh Park Mall: This shopping center, currently the largest in regards to Gross Leasable Area, has an outstanding occupancy rate of 91.2%, suggesting high tenant retention and constant customer traffic.
- Riyadh Gallery Mall: With an occupancy 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, 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 provided for each shopping mall, the report indicates that all the shopping centers consisted of follow a similar prices structure. This uniformity suggests a market requirement, which can be a crucial factor for financiers when assessing the potential 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 big shopping mall in Riyadh. The occupancy is excellent 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 investment in Riyadh's bustling market. Here's an in-depth take a 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 strategically located. It boasts a land location of 139,118 m TWO, offering adequate space for a varied variety of retail and entertainment options.
- Size and Structure: The shopping mall encompasses a total built-up location of 241,220 m two and a Gross Leasable Area (GLA) of 105,290 m TWO. This considerable size is dispersed across three floorings, providing a huge range of leasing alternatives.
- Leasable Area Distribution: The leasable location is divided as follows:.
- First Floor: 38,499 m TWO
. -Ground Floor: 63,687 m ²
. -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 significant number of anchor stores, even more enhancing its appeal. The variety in its tenant mix accommodates a broad spectrum of consumer choices.
- Occupancy Rates: Since August 2022, the mall had a high occupancy rate of 91.2%. This is a sign of its popularity amongst merchants and consumers alike, suggesting a stable stream of foot traffic and constant earnings generation.
- Investment Appeal: Given its strategic place, large GLA, varied tenant mix, and high tenancy rate, Riyadh Park Mall represents a robust financial investment chance. Its success elements work as a guide for what financiers 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 property market. Let's check out why it stands as a considerable case research study for prospective investors:
- Prime Location: The shopping mall is situated in Dammam, Ash Shohda, Ar Rawdah, strategically positioned to bring in a large customer base.
- Extensive Area: Covering a land area of 421,330 m ², Granada Center Mall is among the largest in Riyadh. It has an overall built-up area 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 location is attentively distributed over 2 floorings, improving 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 range of renters, consisting of local and global brands, which caters to a broad market, increasing its appeal as a retail location.
- Occupancy Rate: Despite being partly under restoration, the mall preserved a 64% occupancy rate since August 2022. This figure is most likely to enhance post-renovation, making it an attractive prospect for future growth.
- Investment Potential: Granada Center Mall's size, area, and renter mix position it as a strong contender in Riyadh's retail market. Its large GLA and remodelling strategies 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 ² ".-" Occupancy (Aug 2022): 64% (some parts of the shopping mall under remodelling)".
Case Study 3: Al Nakheel Mall
Al Nakheel Mall, a key retail residential or commercial property in Riyadh, provides itself as an appealing case study for investors. 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 center take advantage of its in a populated and upscale area of Riyadh.
- Substantial Size and Offering: The 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 facilitates 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 various retail and leisure experiences, interesting a large customer base. - Tenant Diversity: Al Nakheel Mall's occupant mix consists of a variety of regional and worldwide brand names, bring in a varied group of shoppers and ensuring steady step.
- Occupancy and Investment Potential: Since August 2022, the shopping center reported an occupancy rate of 82.0%. This reasonably high tenancy rate, combined with its size and place, marks Al Nakheel Mall as a promising investment chance in the Riyadh retail market.
- Additional Considerations: The mall is part of the Arabian Center Group, contributing to its trustworthiness and appeal. Its big GLA and varied tenant mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.
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