The Investor's Map To Riyadh Retail Properties
Riyadh's retail property market is a lively and developing landscape, providing a variety of chances for smart financiers. Based on the thorough benchmarking report, here are some key dynamics shaping this market:
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Diversity in Residential Or Commercial Property Sizes: The marketplace showcases a wide variety 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 ², to smaller retail hubs like Boulevard Mall, boasting a GLA of around 8,000 m TWO. This diversity caters to a broad spectrum of customer requirements and choices.
Geographical Spread: Retail residential or commercial properties in Riyadh are not focused in a single location however are spread throughout the city. This circulation allows for a different financial investment approach, targeting different demographics and socio-economic sections.
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 development trajectory recommends a promising future for retail financial investments in the area.
Quality and Standards: The chosen residential or commercial properties for the research study are kept in mind for their high requirements and quality occupants. This aspect is essential as it affects foot traffic, tenant retention, and general residential or commercial property value.
Catchment Areas
Catchment locations are a crucial aspect of retail real estate, especially for shopping centers, as they directly affect the potential success of these residential or commercial properties. In Riyadh's retail landscape, understanding these locations is necessary for investors.
Here's what the report exposes about catchment locations:
- Definition and Importance: A catchment area is the geographic area from which a mall or retail center draws its clients. It's significant due to the fact that it impacts foot traffic, sales potential, 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 shows its significant impact and reach within the city.
- Al Nakheel Mall: With a catchment area that encompasses 35% of the city's population, Al Nakheel Mall is another crucial gamer in Riyadh's retail landscape. Its considerable protection shows its value as a retail location.
- 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, totaling up to 23.8% of Riyadh's overall population. This indicates a strong loyal client base that mainly 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 highest share of captive population of Riyadh City with 23.8%.".
Lease Rates and Occupancy Trends
In the Riyadh retail genuine estate market, understanding lease rates and tenancy patterns is important for making educated investment decisions.
- Granada Center Mall: Since August 2022, this shopping center, being among the biggest in Riyadh, reveals 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, presently the biggest in terms of Gross Leasable Area, has an impressive tenancy rate of 91.2%, indicating high renter retention and constant consumer traffic.
- Riyadh Gallery Mall: With a tenancy rate of 93.3%, this shopping center stands as another key gamer in the market, reflecting a strong and stable occupant 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 specific figures for lease rates per m two annually aren't offered for each shopping center, the report suggests that all the shopping centers consisted of follow a comparable prices structure. This harmony recommends a market standard, which can be a crucial element for investors when assessing the possible 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 mall in Riyadh. The occupancy is great 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 busy market. Here's a thorough look at its attributes, making it a notable case 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, using sufficient area for a varied variety of retail and entertainment options.
- Size and Structure: The shopping center includes an overall built-up location of 241,220 m ² and a Gross Leasable Area (GLA) of 105,290 m ². This considerable size is distributed throughout 3 floorings, providing a vast array 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 distribution permits a different mix of retail, dining, and home entertainment outlets.
- Tenant Mix and Anchors: Riyadh Park Mall accommodates a significant number of anchor stores, even more its appeal. The diversity in its occupant mix caters to a broad spectrum of consumer choices.
- Occupancy Rates: Since August 2022, the shopping center had a high occupancy rate of 91.2%. This is a sign of its appeal among sellers and customers alike, recommending a steady stream of foot traffic and consistent earnings generation.
- Investment Appeal: Given its tactical location, sizable GLA, varied occupant mix, and high occupancy rate, Riyadh Park Mall represents a robust financial investment opportunity. Its success aspects serve as a guide for what financiers should 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 popular retail destination in Riyadh, provides important insights into the city's retail real estate 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, tactically placed to attract a broad client base.
- Extensive Area: Covering an acreage of 421,330 m ², Granada Center Mall is one of 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 comprehensive leasable location is attentively dispersed over 2 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 mall hosts a range of occupants, consisting of regional and worldwide brands, which caters to a broad group, increasing its appeal as a retail location.
- Occupancy Rate: Despite being partially under restoration, the shopping mall kept a 64% tenancy rate since August 2022. This figure is most likely to enhance post-renovation, making it an appealing prospect for future development.
- Investment Potential: Granada Center Mall's size, place, and tenant mix position it as a strong contender in Riyadh's retail market. Its big GLA and restoration strategies signal potential for worth gratitude, making it an enticing alternative for investors.
Quotation from the Report:
- "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
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Al Nakheel Mall, an essential retail residential or commercial property in Riyadh, emerges as an intriguing case research study for investors. Here's a detailed expedition of its functions:
- Strategic Location: Located on Othman Bin Affan Road, Abi Sofian Ibn Harb, Mugharazat, Al Olaya, this shopping mall take advantage of its position in a populated and affluent location of Riyadh.
- Substantial Size and Offering: The mall covers a land location of 238,769 m two with an overall built-up location of 299,448 m ² and a Gross Leasable Area (GLA) of 81,322 m TWO. This extensive size facilitates a diverse series 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, attracting a wide customer base.
- Tenant Diversity: Al Nakheel Mall's tenant mix includes a series of regional and global brands, attracting a varied group of shoppers and ensuring steady tramp.
- Occupancy and Investment Potential: Since August 2022, the mall reported a tenancy rate of 82.0%. This relatively high occupancy rate, combined with its size and place, marks Al Nakheel Mall as an appealing investment chance in the Riyadh retail market.
- Additional Considerations: The mall becomes part of the Arabian Center Group, adding to its reliability and appeal. Its big GLA and varied renter mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.