Riyadh's retail genuine estate market is a lively and progressing landscape, offering a myriad of opportunities for savvy financiers. Based on the extensive benchmarking report, here are some essential dynamics forming 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 around 100,000 m TWO, to smaller retail hubs like Boulevard Mall, boasting a GLA of around 8,000 m ². This variety deals with 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 out throughout the city. This distribution allows for a diverse financial investment technique, targeting various demographics and socio-economic sections.
Growth Prospects: The retail sector in Riyadh is growing, driven by elements such as increasing population, urbanization, and a shift in customer costs practices. This growth trajectory recommends a promising future for retail financial investments in the region.
Quality and Standards: The selected residential or commercial properties for the research study are kept in mind for their high standards and quality occupants. This element is essential as it influences foot traffic, tenant retention, and general residential or commercial property value.
Catchment Areas
Catchment locations are a critical aspect of retail real estate, particularly for malls, as they straight affect the possible success of these residential or commercial properties. In Riyadh's retail landscape, understanding these locations is essential for financiers.
Here's what the report reveals about catchment locations:
- Definition and Importance: A catchment location is the geographic location from which a shopping center or retail center draws its customers. It's substantial 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 mall stands out with its catchment location covering an exceptional 40.5% of Riyadh's population. This high percentage suggests its considerable impact 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 crucial player in Riyadh's retail landscape. Its significant protection shows its value as a retail destination.
- Riyadh Park Mall: This shopping center 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 total population. This indicates a strong devoted consumer 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% protection."
- "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, understanding lease rates and tenancy trends is essential for making educated investment decisions.
- Granada Center Mall: Since August 2022, this shopping center, being one of the biggest in Riyadh, shows a tenancy rate of 64%. It is essential to note that some parts of the mall were under remodelling at the time, which may have affected this figure.
- Riyadh Park Mall: This mall, currently the biggest in terms of Gross Leasable Area, has an excellent occupancy rate of 91.2%, showing high occupant retention and constant customer traffic.
- Riyadh Gallery Mall: With an occupancy rate of 93.3%, this shopping center stands as another essential gamer in the market, showing a strong and stable tenant 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 supplied for each shopping center, the report indicates that all the shopping centers included follow a similar pricing structure. This uniformity suggests a market standard, which can be a vital aspect for investors when assessing the potential roi.
Quotation from the Report:
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- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the 2nd biggest shopping center in Riyadh according to the Gross Leasable Area." [Granada Center Mall]
- "Another big mall in Riyadh. The tenancy is extremely 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 an effective retail financial 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 a land location of 139,118 m ², offering sufficient area for a varied series of retail and entertainment choices.
- Size and Structure: The mall incorporates a total built-up location of 241,220 m ² and a Gross Leasable Area (GLA) of 105,290 m TWO. This considerable size is distributed throughout 3 floors, offering a huge range of renting options.
- 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 TWO
. -This circulation allows for a diverse mix of retail, dining, and home entertainment outlets. - Tenant Mix and Anchors: Riyadh Park Mall accommodates a significant number of anchor stores, even more boosting its appeal. The diversity in its occupant mix accommodates 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 appeal amongst retailers and consumers alike, recommending a steady stream of foot traffic and constant earnings generation.
- Investment Appeal: Given its strategic area, large GLA, varied occupant mix, and high tenancy rate, Riyadh Park Mall represents a robust investment opportunity. Its success factors serve as a guide for what investors ought to look for in possible 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 prominent retail location in Riyadh, uses valuable insights into the city's retail genuine estate market. Let's explore why it stands as a significant case research study for possible investors:
- Prime Location: The shopping mall is situated in Dammam, Ash Shohda, Ar Rawdah, tactically placed to attract a broad client base.
- Extensive Area: Covering a land location of 421,330 m ², 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 ²
. -Leasable Area and Structure: The shopping mall's extensive leasable area is attentively dispersed over 2 floors, boosting the shopping experience. The floor-wise circulation is as follows:. - First Floor: 60,027 m TWO
. -Ground Floor: 42,052 m ²
. -Tenant Diversity: The mall hosts a variety of renters, including regional and global brands, which accommodates a broad market, increasing its appeal as a retail destination.
- Occupancy Rate: Despite being partly under restoration, the mall kept a 64% occupancy rate since August 2022. This figure is most likely to improve post-renovation, making it an appealing possibility for future growth.
- Investment Potential: Granada Center Mall's size, area, and occupant mix position it as a strong competitor in Riyadh's retail market. Its big GLA and restoration plans signal potential for worth gratitude, making it an enticing option for investors.
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, a crucial retail residential or commercial property in Riyadh, provides itself as an interesting case research study for financiers. Here's a detailed expedition of its functions:
- Strategic Location: Located on Othman Bin Affan Road, Abi Sofian Ibn Harb, Mugharazat, Al Olaya, this mall gain from its position in a populous and wealthy area of Riyadh.
- Substantial Size and Offering: The shopping center covers a land area of 238,769 m two with an overall built-up area of 299,448 m ² and a Gross Leasable Area (GLA) of 81,322 m ². This extensive size facilitates a diverse variety of retail and leisure offerings.
- Leasable Area Distribution Across Floors:. - Second Floor: 20,767 m TWO
. -First Floor: 58,463 m TWO
. Ground Floor: 2,091 m TWO- This circulation accommodates different retail and leisure experiences, appealing to a broad consumer base. - Tenant Diversity: Al Nakheel Mall's renter mix consists of a series of local and worldwide brands, drawing in a diverse group of consumers and ensuring consistent footfall.
- Occupancy and Investment Potential: As of August 2022, the shopping center reported a tenancy rate of 82.0%. This fairly high occupancy rate, combined with its size and location, marks Al Nakheel Mall as an appealing investment opportunity in the Riyadh retail market.
- Additional Considerations: The shopping mall becomes part of the Arabian Center Group, adding to its reliability and appeal. Its large GLA and mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.