Riyadh's retail property market is a lively and developing landscape, offering a myriad of chances for savvy financiers. 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 massive shopping centers like Granada Center Mall with a Gross Leasable Area (GLA) of around 100,000 m ², to smaller sized retail hubs like Boulevard Mall, boasting a GLA of around 8,000 m TWO. This variety caters to a broad spectrum of customer needs and preferences.
Geographical Spread: Retail residential or commercial properties in Riyadh are not concentrated in a single location but are spread out across the city. This distribution enables a varied investment approach, 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 consumer spending routines. This growth trajectory suggests an appealing future for retail investments in the area.
Quality and Standards: The picked residential or commercial properties for the study are noted for their high standards and quality tenants. 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 element of retail property, particularly for malls, as they directly influence the potential success of these residential or commercial properties. In Riyadh's retail landscape, comprehending these locations is vital for investors.
Here's what the report exposes about catchment locations:
- Definition and Importance: A catchment area is the geographical area from which a shopping mall or retail center draws its clients. It's considerable because it affects foot traffic, sales potential, and ultimately, the success of the retail residential or commercial property.
- Granada Center Mall: This shopping center stands apart with its catchment location covering an impressive 40.5% of Riyadh's population. This high portion suggests its substantial 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 significant protection demonstrates its significance 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 tourist 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 shows a strong faithful customer 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 greatest 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 choices.
- Granada Center Mall: Since August 2022, this mall, being one of the biggest in Riyadh, reveals an occupancy rate of 64%. It is essential to note that some parts of the shopping center were under renovation at the time, which might have impacted this figure.
- Riyadh Park Mall: This shopping mall, currently the biggest in regards to Gross Leasable Area, has an impressive tenancy rate of 91.2%, indicating high renter retention and consistent customer traffic.
- Riyadh Gallery Mall: With an occupancy rate of 93.3%, this shopping mall stands as another key gamer in the market, reflecting a strong and stable renter 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 two annually aren't supplied for each mall, the report shows that all the shopping centers consisted of follow a similar prices structure. This harmony suggests a market standard, which can be a vital factor for financiers when examining the prospective return on financial investment.
Quotation from the Report:
- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the 2nd biggest mall in Riyadh according to the Gross Leasable Area." [Granada Center Mall]
- "Another large shopping mall in Riyadh. The occupancy is excellent 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 an effective retail investment in Riyadh's dynamic market. Here's a thorough look at its characteristics, 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 tactically situated. It boasts an acreage of 139,118 m ², offering sufficient area for a varied variety of retail and home entertainment alternatives.
- Size and Structure: The shopping mall includes an overall built-up location of 241,220 m two and a Gross Leasable Area (GLA) of 105,290 m TWO. This substantial size is distributed across three floors, supplying a huge range 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 ²
. -This distribution enables 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 tenant mix accommodates a broad spectrum of customer preferences.
- Occupancy Rates: Since August 2022, the shopping center had a high tenancy rate of 91.2%. This is indicative of its popularity among merchants and consumers alike, recommending a consistent stream of foot traffic and constant earnings generation.
- Investment Appeal: Given its strategic location, substantial GLA, diverse occupant mix, and high occupancy rate, Riyadh Park Mall represents a robust financial investment chance. Its success aspects work as a guide for what financiers need to 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 location in Riyadh, offers valuable insights into the city's retail real estate market. Let's explore why it stands as a substantial case study for prospective investors:
- Prime Location: The shopping mall is situated in Dammam, Ash Shohda, Ar Rawdah, tactically positioned to draw in a wide client base.
- Extensive Area: Covering a land area of 421,330 m ², Granada Center Mall is one of the biggest in Riyadh. It has a total built-up area of 318,064 m ² and a Gross Leasable Area (GLA) of 102,080 m ²
. -Leasable Area and Structure: The shopping center's comprehensive leasable area is thoughtfully dispersed over two floorings, enhancing the shopping experience. The floor-wise distribution is as follows:.
- First Floor: 60,027 m ²
. -Ground Floor: 42,052 m TWO
. -Tenant Diversity: The mall hosts a range of renters, including regional and worldwide brand names, which caters to a broad demographic, increasing its appeal as a retail location.
- Occupancy Rate: Despite being partially under restoration, the mall kept a 64% occupancy rate since August 2022. This figure is most likely to enhance post-renovation, making it an appealing prospect for future growth.
- Investment Potential: Granada Center Mall's size, location, and tenant mix position it as a strong competitor in Riyadh's retail market. Its big GLA and restoration plans signal potential for worth appreciation, making it an enticing alternative for financiers.
Quotation from the Report:
- "Address: Granada Center Mall, Dammam, Ash Shohda, Ar Rawdah".
- "Acreage: 421,330 m TWO ".-" Total Built-up Area: 318,064 m ² ".-" Gross Leasable Area: 102,080 m TWO ".-" Occupancy (Aug 2022): 64% (some parts of the shopping mall under remodelling)".
Case Study 3: Al Nakheel Mall
Al Nakheel Mall, a crucial retail residential or commercial property in Riyadh, emerges as an interesting case research study for financiers. Here's a comprehensive exploration of its features:
- Strategic Location: Located on Othman Bin Affan Road, Abi Sofian Ibn Harb, Mugharazat, Al Olaya, this mall advantages from its position in a populous and upscale location of Riyadh.
- Substantial Size and Offering: The shopping mall covers an acreage of 238,769 m ² with an overall built-up area of 299,448 m two and a Gross Leasable Area (GLA) of 81,322 m ². This comprehensive size facilitates a diverse range 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 distribution deals with different retail and leisure experiences, appealing to a broad customer base.
- Tenant Diversity: Al Nakheel Mall's occupant mix includes a series of regional and worldwide brand names, bring in a diverse group of buyers and ensuring steady footfall.
- Occupancy and Investment Potential: Since August 2022, the mall reported an occupancy rate of 82.0%. This reasonably high tenancy rate, combined 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 becomes part of the Arabian Center Group, including 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.
