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Riyadh's retail realty market is a vibrant and progressing landscape, using a huge selection of opportunities for smart investors. Based on the comprehensive benchmarking report, here are some essential characteristics forming this market:
Diversity in Residential Or Commercial Property Sizes: The market 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 approximately 100,000 m ², to smaller retail centers like Boulevard Mall, boasting a GLA of around 8,000 m ². This diversity deals with a broad spectrum of customer requirements and preferences.
Geographical Spread: Retail residential or commercial properties in Riyadh are not focused in a single location however are spread out across the city. This circulation permits a different investment method, targeting different 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 customer costs habits. This development trajectory recommends an appealing future for retail investments in the region.
Quality and Standards: The selected 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, occupant retention, and total residential or commercial property worth.
Catchment Areas
Catchment locations are a vital aspect of retail property, especially for shopping malls, as they straight influence the prospective success of these residential or commercial properties. In Riyadh's retail landscape, understanding these locations is necessary for investors.
Here's what the report reveals about catchment locations:
- Definition and Importance: A catchment location is the geographic area from which a shopping center or retail center draws its consumers. It's considerable since 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 amazing 40.5% of Riyadh's population. This high percentage indicates its significant 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 crucial player in Riyadh's retail landscape. Its significant coverage demonstrates its importance as a retail destination.
- Riyadh Park Mall: This mall has a catchment that includes 32.1% of Riyadh's population, marking it as a significant destination in the city's retail sector.
- Captive Population: Looking 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 shows a strong devoted client base that mainly frequents this shopping center 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 highest share of captive population of Riyadh City with 23.8%.".
Lease Rates and Occupancy Trends
In the Riyadh retail property market, comprehending lease rates and tenancy patterns is important for making informed investment decisions.
- Granada Center Mall: As of August 2022, this mall, being one of the largest in Riyadh, reveals a tenancy rate of 64%. It is necessary to note that some parts of the mall were under renovation at the time, which may have affected this figure.
- Riyadh Park Mall: This mall, 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 mall stands as another crucial player in the market, showing a strong and stable occupant base.
- Al Nakheel Mall: This residential or commercial property, essential 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 each year aren't offered for each shopping mall, the report indicates that all the malls consisted of follow a comparable pricing structure. This harmony recommends a market requirement, 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 2nd largest mall in Riyadh based on the Gross Leasable Area." [Granada Center Mall]
- "Another big shopping center 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 financial investment in Riyadh's bustling market. Here's an in-depth appearance at its qualities, making it a noteworthy case research study:
- Location and Area: Situated on Alamir Mohamed Ibn Saad Ibn Abdelaziz Road, Al Aqeek, Al Shimal, Riyadh Park Mall is strategically situated. It boasts an acreage of 139,118 m ², providing ample area for a diverse range of retail and entertainment alternatives.
- Size and Structure: The shopping center includes a total built-up location of 241,220 m two and a Gross Leasable Area (GLA) of 105,290 m TWO. This significant size is distributed throughout 3 floors, providing a vast array of renting 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 TWO
. -This circulation permits a varied mix of retail, dining, and entertainment outlets. - Tenant Mix and Anchors: Riyadh Park Mall accommodates a substantial number of anchor stores, further boosting its appeal. The diversity in its renter mix deals with a broad spectrum of customer choices.
- Occupancy Rates: Since August 2022, the mall had a high tenancy rate of 91.2%. This is indicative of its popularity amongst retailers and consumers alike, suggesting a stable stream of foot traffic and constant profits generation.
- Investment Appeal: Given its tactical place, substantial GLA, varied tenant mix, and high tenancy rate, Riyadh Park Mall represents a robust investment chance. Its success aspects function as a guide for what should 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".
- "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, provides valuable insights into the city's retail real estate market. Let's explore why it stands as a significant case research study for prospective financiers:
- Prime Location: The shopping center is situated in Dammam, Ash Shohda, Ar Rawdah, strategically positioned to bring in a large customer base.
- Extensive Area: Covering an acreage of 421,330 m TWO, Granada Center Mall is among the largest in Riyadh. It has a total 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 substantial leasable location is thoughtfully dispersed over 2 floors, boosting the shopping experience. The floor-wise distribution is as follows:. - First Floor: 60,027 m ²
. -Ground Floor: 42,052 m ²
. -Tenant Diversity: The mall hosts a range of tenants, consisting of regional and international brands, which caters to a broad group, increasing its appeal as a retail destination.
- Occupancy Rate: Despite being partially under restoration, the shopping mall maintained a 64% tenancy rate as of August 2022. This figure is likely to improve post-renovation, making it an appealing possibility for future growth.
- Investment Potential: Granada Center Mall's size, place, and tenant mix position it as a strong contender in Riyadh's retail market. Its large GLA and restoration strategies signal potential for value appreciation, making it an appealing choice 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 ² ".-" Gross Leasable Area: 102,080 m ² ".-" Occupancy (Aug 2022): 64% (some parts of the 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 interesting case study for financiers. Here's a comprehensive expedition of its features:
- Strategic Location: Located on Othman Bin Affan Road, Abi Sofian Ibn Harb, Mugharazat, Al Olaya, this shopping center advantages from its position in a populated and affluent location of Riyadh.
- Substantial Size and Offering: The shopping center covers a land area of 238,769 m two 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 TWO
. Ground Floor: 2,091 m ²- This distribution deals with different retail and leisure experiences, appealing to a broad customer base. - Tenant Diversity: Al Nakheel Mall's occupant mix consists of a variety of local and global brands, attracting a diverse group of shoppers and making sure constant step.
- Occupancy and Investment Potential: As of August 2022, the shopping mall reported an occupancy rate of 82.0%. This reasonably 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 shopping center is part of the Arabian Center Group, contributing to its trustworthiness 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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