Riyadh's retail realty market is a dynamic and evolving landscape, offering a wide variety of opportunities for savvy investors. Based upon the thorough benchmarking report, here are some essential characteristics shaping this market:
Diversity in Residential Or Commercial Property Sizes: The market showcases a vast array of residential or commercial property sizes, from massive malls like Granada Center Mall with a Gross Leasable Area (GLA) of approximately 100,000 m TWO, to smaller sized retail centers like Boulevard Mall, boasting a GLA of around 8,000 m ². This variety deals with a broad spectrum of customer requirements and preferences.
Geographical Spread: Retail residential or commercial properties in Riyadh are not concentrated in a single area however are spread throughout the city. This distribution enables for a varied financial investment technique, 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 spending routines. This growth trajectory suggests an appealing future for retail financial investments in the region.
Quality and Standards: The selected residential or commercial properties for the study are kept in mind for their high requirements and quality occupants. This aspect is vital as it influences foot traffic, occupant retention, and overall residential or commercial property worth.
Catchment Areas
Catchment locations are a crucial element of retail real estate, especially for shopping centers, as they straight affect the possible success of these residential or commercial properties. In Riyadh's retail landscape, understanding these areas is essential for financiers.
Here's what the report exposes about catchment areas:
- Definition and Importance: A catchment location is the geographical location from which a shopping mall or retail center draws its customers. It's significant because it impacts foot traffic, sales capacity, and eventually, the success of the retail residential or commercial property.
- Granada Center Mall: This mall sticks out with its catchment area covering an amazing 40.5% of Riyadh's population. This high percentage indicates its considerable impact and reach within the city.
- Al Nakheel Mall: With a catchment location that includes 35% of the city's population, Al Nakheel Mall is another crucial gamer in Riyadh's retail landscape. Its substantial protection demonstrates its value 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 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 total population. This shows a strong faithful client base that primarily frequents this shopping 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 highest share of captive population of Riyadh City with 23.8%.".
Lease Rates and Occupancy Trends
In the Riyadh retail realty market, comprehending lease rates and occupancy trends is important for making educated investment decisions.
- Granada Center Mall: As of August 2022, this shopping mall, being one of the biggest in Riyadh, reveals an occupancy rate of 64%. It is necessary to keep in mind that some parts of the shopping center were under restoration at the time, which might have impacted this figure.
- Riyadh Park Mall: This shopping center, currently the biggest in terms of Gross Leasable Area, has a remarkable 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 mall stands as another essential player in the market, reflecting a strong and steady occupant base.
- Al Nakheel Mall: This residential or commercial property, essential to the Arabian Center Group, reported a tenancy rate of 82.0%, showcasing its robust standing in the market.
- Lease Rates: While particular figures for lease rates per m two each year aren't attended to each mall, the report indicates that all the shopping centers included follow a comparable rates structure. This uniformity suggests a market requirement, which can be a crucial element for investors 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 as per the Gross Leasable Area." [Granada Center Mall]
- "Another large shopping center in Riyadh. The tenancy 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 investment in Riyadh's dynamic market. Here's an in-depth take a look 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 tactically situated. It boasts an acreage of 139,118 m ², using ample area for a diverse range of retail and home entertainment choices.
- Size and Structure: The shopping center encompasses an overall built-up area of 241,220 m ² and a Gross Leasable Area (GLA) of 105,290 m ². This significant size is distributed across 3 floorings, offering a large 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 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, further boosting its appeal. The diversity in its renter mix caters to a broad spectrum of consumer choices.
- Occupancy Rates: As of August 2022, the mall had a high tenancy rate of 91.2%. This is a sign of its appeal among merchants and customers alike, recommending a steady stream of foot traffic and constant revenue generation.
- Investment Appeal: Given its tactical location, large GLA, varied tenant mix, and high occupancy rate, Riyadh Park Mall represents a robust investment chance. Its success factors serve as a guide for what investors ought to try to find 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".
- "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, provides valuable insights into the city's retail property market. Let's check out why it stands as a significant case study for prospective financiers:
- Prime Location: The shopping center lies in Dammam, Ash Shohda, Ar Rawdah, strategically placed to bring in a large consumer base.
- Extensive Area: Covering an acreage of 421,330 m ², Granada Center Mall is among the largest in Riyadh. It has a total built-up area of 318,064 m ² and a Gross Leasable Area (GLA) of 102,080 m TWO
. -Leasable Area and Structure: The mall's extensive leasable area is attentively distributed over two floorings, improving the shopping experience. The floor-wise circulation is as follows:.
- First Floor: 60,027 m ²
. -Ground Floor: 42,052 m ²
. -Tenant Diversity: The shopping mall hosts a variety of renters, consisting of regional and global brands, which accommodates a broad demographic, increasing its appeal as a retail location.
- Occupancy Rate: Despite being partially under renovation, the shopping mall maintained a 64% occupancy rate as of August 2022. This figure is likely to improve post-renovation, making it an attractive possibility for future development.
- Investment Potential: Granada Center Mall's size, area, and tenant mix position it as a strong contender in Riyadh's retail market. Its big GLA and remodelling plans signal capacity for worth appreciation, 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 ² ".-" Occupancy (Aug 2022): 64% (some parts of the mall under renovation)".
Case Study 3: Al Nakheel Mall
Al Nakheel Mall, an essential retail residential or commercial property in Riyadh, emerges as an appealing case 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 take advantage of its position in a populous and wealthy area of Riyadh.
- Substantial Size and Offering: The shopping mall covers an acreage of 238,769 m ² 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 assists in a diverse range of retail and leisure offerings.
- Leasable Area Distribution Across Floors:.
- Second Floor: 20,767 m ²
. -First Floor: 58,463 m ²
. Ground Floor: 2,091 m TWO- This distribution deals with different retail and leisure experiences, interesting a large consumer base.
- Tenant Diversity: Al Nakheel Mall's renter mix consists of a series of local and global brand names, drawing in a diverse group of buyers and ensuring consistent footfall.
- Occupancy and Investment Potential: As of August 2022, the mall reported a tenancy rate of 82.0%. This reasonably high tenancy rate, integrated with its size and location, marks Al Nakheel Mall as a promising financial investment opportunity in the Riyadh retail market.
- Additional Considerations: The mall belongs to the Arabian Center Group, including to its reliability and appeal. Its big GLA and diverse renter mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.
