Riyadh's retail property market is a dynamic and evolving landscape, providing a myriad of chances for smart financiers. Based on the thorough benchmarking report, here are some key dynamics 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 retail centers like Boulevard Mall, boasting a GLA of around 8,000 m TWO. This diversity accommodates a broad spectrum of consumer 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 enables a diverse financial investment technique, targeting different demographics and socio-economic segments.
Growth Prospects: The retail sector in Riyadh is growing, driven by elements such as increasing population, urbanization, and a shift in consumer spending habits. This development trajectory recommends an appealing future for retail financial investments in the area.
Quality and Standards: The picked residential or commercial properties for the study are kept in mind for their high standards and quality renters. This element is crucial as it influences foot traffic, renter retention, and overall residential or commercial property value.
Catchment Areas
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Catchment locations are a critical element of retail realty, particularly for shopping centers, as they straight influence the potential success of these residential or commercial properties. In Riyadh's retail landscape, understanding these locations is essential for investors.
Here's what the report reveals about catchment locations:
- Definition and Importance: A catchment location is the geographic area from which a mall or retail center draws its customers. It's substantial since it impacts foot traffic, sales potential, and eventually, the success of the retail residential or commercial property.
- Granada Center Mall: This shopping center sticks out with its catchment location covering an amazing 40.5% of Riyadh's population. This high portion suggests its considerable effect and reach within the city.
- Al Nakheel Mall: With a catchment location that encompasses 35% of the city's population, Al Nakheel Mall is another essential player in Riyadh's retail landscape. Its substantial coverage 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 tourist 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 indicates a strong devoted customer base that predominantly 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 realty market, comprehending lease rates and occupancy trends is essential for making informed financial investment decisions.
- Granada Center Mall: Since August 2022, this shopping center, being one of the biggest in Riyadh, reveals a tenancy rate of 64%. It's important to note that some parts of the mall were under restoration at the time, which may have impacted this figure.
- Riyadh Park Mall: This shopping center, presently the largest in terms of Gross Leasable Area, has an outstanding occupancy rate of 91.2%, showing high tenant retention and consistent consumer traffic.
- Riyadh Gallery Mall: With an occupancy rate of 93.3%, this mall stands as another crucial gamer in the market, reflecting a strong and steady renter 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 specific figures for lease rates per m ² per year aren't supplied for each mall, the report shows that all the malls included follow a comparable prices structure. This harmony recommends a market standard, which can be an important element for investors when examining the possible roi.
Quotation from the Report:
- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the 2nd largest shopping mall in Riyadh as per the Gross Leasable Area." [Granada Center Mall]
- "Another large mall in Riyadh. The tenancy is very great 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 an effective retail investment in Riyadh's dynamic market. Here's a thorough take a 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 strategically located. It boasts a land area of 139,118 m TWO, providing ample space for a varied series of retail and entertainment choices.
- Size and Structure: The mall includes a total 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 floors, offering a huge variety of leasing choices.
- Leasable Area Distribution: The leasable location is divided as follows:.
- First Floor: 38,499 m ²
. -Ground Floor: 63,687 m TWO
. -Basement: 3,103 m TWO
. -This distribution permits a varied mix of retail, dining, and home outlets. - Tenant Mix and Anchors: Riyadh Park Mall accommodates a significant number of anchor shops, further boosting its appeal. The variety in its renter mix caters to a broad spectrum of consumer preferences.
- Occupancy Rates: As of August 2022, the shopping mall had a high tenancy rate of 91.2%. This is indicative of its popularity amongst retailers and consumers alike, suggesting a consistent stream of foot traffic and constant earnings generation.
- Investment Appeal: Given its tactical location, substantial GLA, varied tenant mix, and high occupancy rate, Riyadh Park Mall represents a robust investment opportunity. Its success aspects work as a guide for what financiers need to search for in prospective 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, offers valuable insights into the city's retail property market. Let's explore why it stands as a significant case research study for potential financiers:
- Prime Location: The shopping center is located in Dammam, Ash Shohda, Ar Rawdah, strategically positioned to draw in a broad consumer base.
- Extensive Area: Covering a land area of 421,330 m TWO, Granada Center Mall is one of the largest in Riyadh. It has an overall built-up area of 318,064 m ² and a Gross Leasable Area (GLA) of 102,080 m ²
. -Leasable Area and Structure: The mall's substantial leasable area is thoughtfully distributed over two floors, boosting the shopping experience. The floor-wise circulation is as follows:. - First Floor: 60,027 m TWO
. -Ground Floor: 42,052 m TWO
. -Tenant Diversity: The shopping center hosts a variety of occupants, including local and global brand names, which accommodates a broad group, increasing its appeal as a retail location.
- Occupancy Rate: Despite being partially under remodelling, the mall preserved a 64% occupancy rate since August 2022. This figure is most likely to enhance post-renovation, making it an attractive possibility for future development.
- Investment Potential: Granada Center Mall's size, location, 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 appealing choice for financiers.
Quotation from the Report:
- "Address: Granada Center Mall, Dammam, Ash Shohda, Ar Rawdah".
- "Acreage: 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 mall under renovation)".
Case Study 3: Al Nakheel Mall
Al Nakheel Mall, a crucial retail residential or commercial property in Riyadh, presents itself as an appealing case study for investors. 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 gain from its position in a populated and wealthy area of Riyadh.
- Substantial Size and Offering: The 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 substantial size helps with 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 ²- This circulation deals with various retail and leisure experiences, appealing to a large customer base. - Tenant Diversity: Al Nakheel Mall's occupant mix consists of a series of local and worldwide brand names, bring in a varied group of shoppers and guaranteeing stable footfall.
- Occupancy and Investment Potential: As of August 2022, the shopping mall reported a tenancy rate of 82.0%. This reasonably high occupancy rate, combined with its size and place, marks Al Nakheel Mall as a promising investment chance in the Riyadh retail market.
- Additional Considerations: The shopping mall belongs to the Arabian Center Group, contributing to its reliability and appeal. Its large GLA and varied occupant mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.