Riyadh's retail genuine estate market is a lively and developing landscape, providing a variety of opportunities for savvy investors. Based on the detailed benchmarking report, here are some crucial characteristics shaping this market:
Diversity in Residential Or Commercial Property Sizes: The marketplace a vast array of residential or commercial property sizes, from large-scale malls like Granada Center Mall with a Gross Leasable Area (GLA) of roughly 100,000 m TWO, to smaller sized retail hubs like Boulevard Mall, boasting a GLA of around 8,000 m TWO. This variety accommodates a broad spectrum of customer needs and choices.
Geographical Spread: Retail residential or commercial properties in Riyadh are not focused in a single location but are spread out across the city. This distribution permits a diverse financial 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 spending practices. This growth trajectory recommends a promising future for retail financial investments in the region.
Quality and Standards: The picked residential or commercial properties for the research study are noted for their high requirements and quality renters. This element is essential as it affects foot traffic, occupant retention, and total residential or commercial property worth.
Catchment Areas
Catchment locations are an important aspect of retail realty, especially for shopping malls, 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 location is the geographical location from which a mall or retail center draws its customers. It's significant due to the fact that it impacts foot traffic, sales potential, and ultimately, the success of the retail residential or commercial property.
- Granada Center Mall: This shopping mall sticks out with its catchment location covering a remarkable 40.5% of Riyadh's population. This high percentage suggests its considerable effect and reach within the city.
- Al Nakheel Mall: With a catchment location that incorporates 35% of the city's population, Al Nakheel Mall is another key gamer in Riyadh's retail landscape. Its significant protection demonstrates its significance as a retail location.
- Riyadh Park Mall: This mall has a catchment that includes 32.1% of Riyadh's population, marking it as a major attraction in the city's retail sector.
- Captive Population: Looking 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 suggests a strong loyal client base that predominantly 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 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 occupancy trends is essential for making educated investment decisions.
- Granada Center Mall: As of August 2022, this shopping mall, being one of the largest in Riyadh, reveals a tenancy rate of 64%. It's essential to keep in mind that some parts of the shopping center were under renovation 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 an outstanding occupancy rate of 91.2%, suggesting high renter retention and consistent customer traffic.
- Riyadh Gallery Mall: With a tenancy rate of 93.3%, this shopping center stands as another crucial player in the market, reflecting a strong and stable tenant 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 attended to each mall, the report indicates that all the shopping centers consisted of follow a comparable pricing structure. This uniformity recommends a market requirement, which can be a critical 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 second biggest shopping mall in Riyadh based on the Gross Leasable Area." [Granada Center Mall]
- "Another large mall in Riyadh. The occupancy is 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 a successful retail investment in Riyadh's busy market. Here's an extensive look at its attributes, 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 TWO, providing sufficient space for a varied series of retail and entertainment choices.
- Size and Structure: The shopping mall encompasses a total built-up location of 241,220 m two and a Gross Leasable Area (GLA) of 105,290 m TWO. This considerable size is dispersed across three floorings, providing a huge selection of leasing options.
- Leasable Area Distribution: The leasable area is divided as follows:.
- First Floor: 38,499 m TWO
. -Ground Floor: 63,687 m TWO
. -Basement: 3,103 m TWO
. -This distribution permits a different mix of retail, dining, and home entertainment outlets. - Tenant Mix and Anchors: Riyadh Park Mall accommodates a considerable variety of anchor shops, even more enhancing its appeal. The diversity in its occupant mix deals with a broad spectrum of consumer preferences.
- Occupancy Rates: Since August 2022, the shopping mall had a high occupancy rate of 91.2%. This is indicative of its appeal among merchants and customers alike, suggesting a steady stream of foot traffic and consistent revenue generation.
- Investment Appeal: Given its strategic location, substantial GLA, diverse renter mix, and high tenancy rate, Riyadh Park Mall represents a robust investment chance. Its success aspects function as a guide for what investors must look for in potential retail residential or commercial property 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 realty market. Let's check out why it stands as a significant case research study for potential investors:
- Prime Location: The shopping center is located in Dammam, Ash Shohda, Ar Rawdah, strategically placed to draw in a large consumer 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 area of 318,064 m ² and a Gross Leasable Area (GLA) of 102,080 m TWO
. -Leasable Area and Structure: The shopping center's substantial leasable location is thoughtfully distributed over 2 floorings, boosting 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 occupants, including regional and global brands, which deals with a broad group, increasing its appeal as a retail destination.
- Occupancy Rate: Despite being partly under restoration, the mall maintained a 64% occupancy rate since August 2022. This figure is most likely to enhance post-renovation, making it an attractive prospect for future growth.
- Investment Potential: Granada Center Mall's size, place, and renter mix position it as a strong contender in Riyadh's retail market. Its big GLA and remodelling strategies signal capacity for value gratitude, 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 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 mall under remodelling)".
Case Study 3: Al Nakheel Mall
reference.com
Al Nakheel Mall, an essential retail residential or commercial property in Riyadh, emerges as an interesting case study for financiers. Here's an in-depth expedition of its features:
- Strategic Location: Located on Othman Bin Affan Road, Abi Sofian Ibn Harb, Mugharazat, Al Olaya, this shopping center take advantage of its position in a populous and wealthy location of Riyadh.
- Substantial Size and Offering: The shopping center covers a land location of 238,769 m ² with an overall built-up location of 299,448 m two and a Gross Leasable Area (GLA) of 81,322 m ². This comprehensive size helps with a diverse variety of retail and leisure offerings.
- Leasable Area Distribution Across Floors:. - Second Floor: 20,767 m TWO
. -First Floor: 58,463 m ²
. Ground Floor: 2,091 m TWO- This distribution caters to various retail and leisure experiences, attracting a broad customer base. - Tenant Diversity: Al Nakheel Mall's occupant mix consists of a range of regional and worldwide brands, bring in a varied group of buyers and guaranteeing consistent step.
- Occupancy and Investment Potential: As of August 2022, the shopping center reported an occupancy rate of 82.0%. This reasonably high tenancy rate, integrated with its size and location, marks Al Nakheel Mall as an appealing investment opportunity in the Riyadh retail market.
- Additional Considerations: The shopping mall is part of the Arabian Center Group, adding to its reliability and appeal. Its big GLA and varied tenant mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.
reference.com