Riyadh's retail property market is a dynamic and evolving landscape, providing a plethora of chances for savvy investors. Based upon the extensive benchmarking report, here are some essential dynamics shaping this market:
Diversity in Residential Or Commercial Property Sizes: The market showcases a large range of residential or commercial property sizes, from large-scale shopping malls like Granada Center Mall with a Gross Leasable Area (GLA) of around 100,000 m TWO, to smaller sized retail centers like Boulevard Mall, boasting a GLA of around 8,000 m ². This diversity caters to a broad spectrum of consumer needs and preferences.
Geographical Spread: Retail residential or commercial properties in Riyadh are not concentrated in a single area but are spread out throughout the city. This distribution permits a diverse financial investment method, targeting various demographics and socio-economic sectors.
Growth Prospects: The retail sector in Riyadh is growing, driven by aspects such as increasing population, urbanization, and a shift in customer spending habits. This growth trajectory recommends a promising future for retail investments in the region.
Quality and Standards: The picked residential or commercial properties for the study are noted for their high standards and quality occupants. This aspect is crucial as it affects foot traffic, tenant retention, and overall residential or commercial property value.
Catchment Areas
Catchment areas are an important element of retail property, especially for malls, as they straight influence the potential success of these residential or commercial properties. In Riyadh's retail landscape, understanding these areas is essential for investors.
Here's what the report exposes about catchment areas:
- Definition and Importance: A catchment area is the geographical area from which a mall or retail center draws its consumers. It's substantial due to the fact that it impacts foot traffic, sales capacity, and ultimately, the success of the retail residential or commercial property.
- Granada Center Mall: This shopping center sticks out with its catchment location covering a remarkable 40.5% of Riyadh's population. This high percentage indicates its significant effect and reach within the city.
- Al Nakheel Mall: With a catchment area that includes 35% of the city's population, Al Nakheel Mall is another essential player in Riyadh's retail landscape. Its significant coverage demonstrates its significance as a retail location.
- Riyadh Park Mall: This shopping mall has a catchment that includes 32.1% of Riyadh's population, marking it as a significant destination 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 total population. This indicates a strong devoted consumer 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 highest share of captive population of Riyadh City with 23.8%.".
Lease Rates and Occupancy Trends
In the Riyadh retail property market, understanding lease rates and occupancy patterns is crucial for making informed financial investment decisions.
- Granada Center Mall: Since August 2022, this mall, being among the largest in Riyadh, shows a tenancy rate of 64%. It is essential to keep in mind that some parts of the shopping mall were under remodelling at the time, which might have affected this figure.
- Riyadh Park Mall: This mall, presently the largest in terms of Gross Leasable Area, has an outstanding occupancy rate of 91.2%, showing high tenant retention and constant customer traffic.
- Riyadh Gallery Mall: With a tenancy rate of 93.3%, this shopping center stands as another essential player in the market, showing a strong and stable occupant base.
- Al Nakheel Mall: This residential or commercial property, important 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 suggests that all the malls included follow a similar pricing structure. This harmony recommends a market standard, which can be a crucial aspect for financiers when assessing the possible return on investment.
Quotation from the Report:
- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the 2nd biggest shopping mall in Riyadh according to the Gross Leasable Area." [Granada Center Mall]
- "Another large mall in Riyadh. The occupancy is very 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 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 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 adequate space for a diverse range of retail and home entertainment alternatives.
- Size and Structure: The mall encompasses a total 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 three floorings, providing a vast variety of renting alternatives.
- 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 enables a varied mix of retail, dining, and home entertainment outlets.
- Tenant Mix and Anchors: Riyadh Park Mall accommodates a significant number of anchor shops, further boosting its appeal. The diversity in its tenant mix caters to a broad spectrum of customer preferences.
- Occupancy Rates: As of August 2022, the shopping mall had a high tenancy rate of 91.2%. This is a sign of its popularity among sellers and consumers alike, recommending a consistent stream of foot traffic and consistent earnings generation.
- Investment Appeal: Given its tactical location, sizable GLA, diverse tenant mix, and high occupancy rate, Riyadh Park Mall represents a robust financial investment chance. Its success aspects function as a guide for what investors ought to look for in prospective 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 popular retail destination in Riyadh, provides important insights into the city's retail realty market. Let's check out why it stands as a considerable case research study for prospective financiers:
- Prime Location: The mall is located in Dammam, Ash Shohda, Ar Rawdah, strategically placed to attract a broad client base.
- Extensive Area: Covering an acreage of 421,330 m ², Granada Center Mall is among the biggest in Riyadh. It has a total built-up location of 318,064 m ² and a Gross Leasable Area (GLA) of 102,080 m TWO
. -Leasable Area and Structure: The shopping mall's substantial leasable area is thoughtfully distributed over two floors, boosting the shopping experience. The floor-wise distribution is as follows:.
- First Floor: 60,027 m TWO
. -Ground Floor: 42,052 m TWO
. -Tenant Diversity: The shopping center hosts a range of occupants, consisting of regional and worldwide brands, which caters to a broad demographic, increasing its appeal as a retail destination.
- Occupancy Rate: Despite being partly under renovation, the shopping mall preserved a 64% tenancy rate as of August 2022. This figure is most likely to improve post-renovation, making it an attractive prospect 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 large GLA and remodelling strategies signal potential for worth gratitude, making it an appealing 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 ² ".-" 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, provides itself as an appealing case research 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 populated and upscale location of Riyadh.
- Substantial Size and Offering: The mall 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 extensive size assists in a diverse variety of retail and leisure offerings.
- Leasable Area Distribution Across Floors:.
- Second Floor: 20,767 m ²
. -First Floor: 58,463 m TWO
. Ground Floor: 2,091 m TWO- This circulation deals with various retail and leisure experiences, attracting a broad customer base.
- Tenant Diversity: Al Nakheel Mall's tenant mix includes a variety of local and worldwide brands, bring in a diverse group of shoppers and making sure steady step.
- Occupancy and Investment Potential: As of August 2022, the shopping mall reported a tenancy rate of 82.0%. This reasonably high tenancy rate, combined with its size and area, marks Al Nakheel Mall as a promising investment chance in the Riyadh retail market.
- Additional Considerations: The shopping center is part of the Arabian Center Group, contributing to its reliability and appeal. Its large GLA and diverse tenant mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.
