Riyadh's retail realty market is a vibrant and progressing landscape, offering a plethora of opportunities for savvy investors. Based on the thorough benchmarking report, here are some crucial characteristics forming this market:
Diversity in Residential Or Commercial Property Sizes: The market showcases a large variety of residential or commercial property sizes, from massive shopping centers like Granada Center Mall with a Gross Leasable Area (GLA) of around 100,000 m TWO, to smaller sized retail hubs like Boulevard Mall, boasting a GLA of around 8,000 m ². This diversity deals with a broad spectrum of consumer needs and choices.
Geographical Spread: Retail residential or commercial properties in Riyadh are not focused in a single area but are spread out throughout the city. This distribution enables a diverse investment method, targeting various demographics and socio-economic segments.
Growth Prospects: The retail sector in Riyadh is growing, driven by factors such as increasing population, urbanization, and a shift in consumer spending habits. This growth trajectory recommends an appealing 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 tenants. This element is crucial as it affects foot traffic, tenant retention, and general residential or commercial property worth.
Catchment Areas
Catchment areas are a crucial element of retail genuine estate, especially for shopping malls, as they directly influence the possible success of these residential or commercial properties. In Riyadh's retail landscape, understanding these areas is necessary for investors.
Here's what the report exposes about catchment areas:
- Definition and Importance: A catchment area is the geographical location from which a shopping center or retail center draws its customers. It's substantial due to the fact that it impacts foot traffic, sales capacity, and ultimately, the success of the retail residential or commercial property.
- Granada Center Mall: This shopping mall stands apart with its catchment location covering an exceptional 40.5% of Riyadh's population. This high portion shows its considerable impact and reach within the city.
- Al Nakheel Mall: With a catchment area that includes 35% of the city's population, Al Nakheel Mall is another essential gamer in Riyadh's retail landscape. Its significant coverage shows its importance as a retail destination.
- Riyadh Park Mall: This shopping center has a catchment that includes 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 highest share of a captive population, amounting to 23.8% of Riyadh's overall population. This indicates a strong devoted client base that primarily 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 greatest share of captive population of Riyadh City with 23.8%.".
Lease Rates and Occupancy Trends
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In the Riyadh retail property market, comprehending lease rates and occupancy trends is important for making educated financial investment decisions.
- Granada Center Mall: As of August 2022, this shopping mall, being one of the biggest in Riyadh, shows a tenancy rate of 64%. It's essential to keep in mind that some parts of the mall were under remodelling at the time, which may have affected this figure.
- Riyadh Park Mall: This mall, presently the biggest in regards to Gross Leasable Area, has an excellent occupancy rate of 91.2%, suggesting high renter retention and consistent consumer traffic.
- Riyadh Gallery Mall: With a tenancy rate of 93.3%, this shopping center stands as another essential gamer in the market, reflecting a strong and steady tenant 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 ² per year aren't provided for each mall, the report suggests that all the shopping malls consisted of follow a comparable pricing structure. This harmony suggests a market standard, which can be an important factor for investors when assessing the potential roi.
Quotation from the Report:
- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the second biggest mall in Riyadh as per the Gross Leasable Area." [Granada Center Mall]
- "Another big 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 financial investment in Riyadh's bustling market. Here's an in-depth 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 tactically located. It boasts an acreage of 139,118 m TWO, using ample space for a varied range of retail and home entertainment options.
- Size and Structure: The mall encompasses an overall built-up area of 241,220 m two and a Gross Leasable Area (GLA) of 105,290 m ². This significant size is distributed across three floors, offering a vast selection of leasing alternatives.
- 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 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, even more boosting its appeal. The diversity in its occupant mix accommodates a broad spectrum of consumer choices.
- Occupancy Rates: Since August 2022, the mall had a high tenancy rate of 91.2%. This is indicative of its popularity among retailers and consumers alike, recommending a constant stream of foot traffic and consistent income generation.
- Investment Appeal: Given its tactical area, large GLA, varied tenant mix, and high occupancy rate, Riyadh Park Mall represents a robust financial investment opportunity. Its success elements act as a guide for what financiers must try to find in prospective 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 destination 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 investors:
- Prime Location: The mall lies in Dammam, Ash Shohda, Ar Rawdah, tactically placed to bring in a wide consumer base.
- Extensive Area: Covering a land area of 421,330 m ², Granada Center Mall is among the biggest 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 mall's extensive leasable location is thoughtfully distributed over two floorings, enhancing 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 group, increasing its appeal as a retail location.
- Occupancy Rate: Despite being partly under renovation, the mall preserved a 64% tenancy rate since August 2022. This figure is likely to enhance post-renovation, making it an appealing possibility for future development.
- Investment Potential: Granada Center Mall's size, area, and tenant mix position it as a strong competitor in Riyadh's retail market. Its big GLA and restoration plans signal capacity for value gratitude, making it an enticing alternative for financiers.
Quotation from the Report:
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- "Address: Granada Center Mall, Dammam, Ash Shohda, Ar Rawdah".
- "Land Area: 421,330 m ² ".-" Total Built-up Area: 318,064 m TWO ".-" Gross Leasable Area: 102,080 m ² ".-" Occupancy (Aug 2022): 64% (some parts of the shopping center 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 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 populated and upscale area of Riyadh.
- Substantial Size and Offering: The shopping center covers an acreage of 238,769 m ² with a total built-up location of 299,448 m ² and a Gross Leasable Area (GLA) of 81,322 m TWO. This substantial size assists in 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 ²- This distribution accommodates various retail and leisure experiences, attracting a large consumer base. - Tenant Diversity: Al Nakheel Mall's renter mix includes a variety of regional and names, drawing in a varied group of buyers and guaranteeing steady tramp.
- Occupancy and Investment Potential: As of August 2022, the mall reported a tenancy rate of 82.0%. This relatively high tenancy rate, integrated with its size and place, marks Al Nakheel Mall as an appealing financial investment chance in the Riyadh retail market.
- Additional Considerations: The shopping center is part of the Arabian Center Group, adding to its reliability and appeal. Its big GLA and varied occupant mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.