Riyadh's retail realty market is a vibrant and developing landscape, providing a myriad of opportunities for savvy investors. Based on the thorough benchmarking report, here are some key characteristics shaping this market:
Diversity in Residential Or Commercial Property Sizes: The marketplace showcases a wide variety 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 centers like Boulevard Mall, boasting a GLA of around 8,000 m TWO. This diversity caters to a broad spectrum of consumer requirements and preferences.
Geographical Spread: Retail residential or commercial properties in Riyadh are not focused in a single area however are spread across the city. This circulation allows for a diverse financial investment approach, targeting different demographics and socio-economic sectors.
Growth Prospects: The retail sector in Riyadh is growing, driven by factors such as increasing population, urbanization, and a shift in consumer costs routines. This growth trajectory suggests an appealing future for retail financial 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 element is essential as it affects foot traffic, renter retention, and total residential or commercial property worth.
Catchment Areas
Catchment locations are a critical aspect of retail realty, especially for shopping malls, as they straight influence the potential success of these residential or commercial properties. In Riyadh's retail landscape, understanding these areas is important for financiers.
Here's what the report reveals about catchment areas:
- Definition and Importance: A catchment area is the geographic 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 ultimately, the profitability of the retail residential or commercial property.
- Granada Center Mall: This shopping mall stands out with its catchment area covering a remarkable 40.5% of Riyadh's population. This high percentage suggests its significant effect and reach within the city.
- Al Nakheel Mall: With a catchment location that encompasses 35% of the city's population, Al Nakheel Mall is another key player in Riyadh's retail landscape. Its substantial coverage shows its importance as a retail destination.
- 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, totaling up to 23.8% of Riyadh's overall population. This suggests a strong loyal consumer base that primarily 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% 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, understanding lease rates and tenancy patterns is crucial for making informed financial investment choices.
- Granada Center Mall: As of August 2022, this mall, being one of the largest in Riyadh, shows an occupancy rate of 64%. It is very important to keep in mind that some parts of the shopping center were under restoration at the time, which may have affected this figure.
- Riyadh Park Mall: This shopping mall, presently the largest in terms of Gross Leasable Area, has an excellent tenancy rate of 91.2%, showing high renter retention and constant consumer traffic.
- Riyadh Gallery Mall: With a tenancy rate of 93.3%, this shopping mall stands as another crucial gamer in the market, showing a strong and stable occupant base.
- Al Nakheel Mall: This residential or commercial property, integral 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 ² annually aren't offered for each mall, the report suggests that all the shopping centers included follow a comparable rates structure. This harmony suggests a market requirement, which can be a vital aspect for investors when evaluating the potential roi.
Quotation from the Report:
- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the 2nd largest shopping mall in Riyadh according to the Gross Leasable Area." [Granada Center Mall]
- "Another large shopping center in Riyadh. The occupancy is really good 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 market. Here's a thorough 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 a land location of 139,118 m ², providing ample area for a varied variety of retail and home entertainment choices.
- Size and Structure: The shopping center encompasses an overall built-up location of 241,220 m two and a Gross Leasable Area (GLA) of 105,290 m ². This significant size is dispersed across 3 floorings, supplying a vast selection of leasing 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 distribution enables a diverse mix of retail, dining, and entertainment outlets. - Tenant Mix and Anchors: Riyadh Park Mall accommodates a significant variety of anchor shops, even more enhancing its appeal. The diversity in its renter mix caters to a broad spectrum of consumer preferences.
- Occupancy Rates: Since August 2022, the mall had a high occupancy rate of 91.2%. This is indicative of its popularity among sellers and customers alike, suggesting a consistent stream of foot traffic and constant earnings generation.
- Investment Appeal: Given its strategic place, substantial GLA, varied renter mix, and high occupancy rate, Riyadh Park Mall represents a robust financial investment opportunity. Its success aspects serve as a guide for what investors must try to find in potential 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 location in Riyadh, uses valuable insights into the city's retail realty market. Let's check out why it stands as a substantial case study for possible financiers:
- Prime Location: The shopping mall is located in Dammam, Ash Shohda, Ar Rawdah, strategically positioned to draw in a broad client base.
- Extensive Area: Covering a land area of 421,330 m ², Granada Center Mall is among the biggest in Riyadh. It has a total built-up location of 318,064 m two and a Gross Leasable Area (GLA) of 102,080 m ²
. -Leasable Area and Structure: The shopping center's comprehensive leasable area is attentively distributed over 2 floors, enhancing the shopping experience. The floor-wise circulation is as follows:. - First Floor: 60,027 m TWO
. -Ground Floor: 42,052 m TWO
. -Tenant Diversity: The mall hosts a variety of tenants, including local and global brand names, which deals with a broad market, increasing its appeal as a retail location.
- Occupancy Rate: Despite being partly under renovation, the shopping mall preserved a 64% tenancy 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, place, and renter mix position it as a strong competitor in Riyadh's retail market. Its big GLA and restoration strategies signal capacity for value gratitude, 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 TWO ".-" 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 restoration)".
Case Study 3: Al Nakheel Mall
Al Nakheel Mall, a crucial retail residential or commercial property in Riyadh, provides itself as an intriguing case research study for financiers. 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 mall benefits from its position in a populated and wealthy area of Riyadh.
- Substantial Size and Offering: The shopping center covers a land area of 238,769 m ² with an overall built-up location of 299,448 m ² and a Gross Leasable Area (GLA) of 81,322 m TWO. This comprehensive size helps with a diverse range 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 circulation deals with different retail and leisure experiences, interesting a large consumer base. - Tenant Diversity: Al Nakheel Mall's renter mix consists of a variety of regional and worldwide brands, drawing in a diverse group of consumers and making sure constant step.
- Occupancy and Investment Potential: Since August 2022, the mall reported an occupancy rate of 82.0%. This relatively high tenancy rate, integrated with its size and location, marks Al Nakheel Mall as a promising investment opportunity in the Riyadh retail market.
- Additional Considerations: The mall becomes part of the Arabian Center Group, adding to its trustworthiness and appeal. Its big GLA and diverse occupant mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.
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