Riyadh's retail realty market is a vibrant and evolving landscape, providing a variety of chances for smart financiers. Based on the comprehensive benchmarking report, here are some essential dynamics shaping this market:
Diversity in Residential Or Commercial Property Sizes: The marketplace showcases a large range 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 retail hubs like Boulevard Mall, boasting a GLA of around 8,000 m ². This diversity caters to a broad spectrum of customer requirements and choices.
Geographical Spread: Retail residential or commercial properties in Riyadh are not focused in a single area however are spread out across the city. This distribution enables a different financial investment method, targeting different demographics and socio-economic sectors.
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 development trajectory suggests an appealing future for retail financial investments in the area.
Quality and Standards: The selected residential or commercial properties for the study are noted for their high standards and quality renters. This element is vital as it affects foot traffic, renter retention, and total residential or commercial property worth.
Catchment Areas
Catchment locations are a critical aspect of retail realty, particularly for shopping centers, as they directly affect the potential success of these residential or commercial properties. In Riyadh's retail landscape, comprehending these locations is important for investors.
Here's what the report exposes about catchment areas:
- Definition and Importance: A catchment location is the geographical location from which a 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 shopping center sticks out with its catchment location covering an impressive 40.5% of Riyadh's population. This high percentage indicates its considerable 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 location.
- Riyadh Park Mall: This shopping center has a catchment that consists of 32.1% of Riyadh's population, marking it as a major destination in the city's retail sector.
- Captive Population: Looking deeper into the numbers, Granada Center Mall has the highest share of a captive population, amounting to 23.8% of Riyadh's overall population. This indicates a strong faithful client base that primarily 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 property market, comprehending lease rates and occupancy patterns is crucial for making informed investment decisions.
- Granada Center Mall: As of August 2022, this shopping center, being among the biggest in Riyadh, reveals an occupancy 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 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%, showing high renter retention and constant consumer traffic.
- Riyadh Gallery Mall: With a tenancy rate of 93.3%, this mall stands as another essential player in the market, showing a strong and steady 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 annually aren't supplied for each shopping mall, the report indicates that all the shopping malls included follow a comparable prices structure. This uniformity suggests a market requirement, which can be a crucial element for financiers when evaluating the potential roi.
Quotation from the Report:
- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the second biggest shopping center in Riyadh according to the Gross Leasable Area." [Granada Center Mall]
- "Another big shopping mall in Riyadh. The occupancy is very great at 93.3%." [Riyadh Gallery Mall]
- "A crucial 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 financial investment in Riyadh's bustling market. Here's a thorough 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 strategically located. It boasts an acreage of 139,118 m TWO, using adequate space for a varied series of retail and entertainment options.
- Size and Structure: The shopping center encompasses an overall built-up location of 241,220 m two and a Gross Leasable Area (GLA) of 105,290 m TWO. This significant size is dispersed throughout three floors, supplying a vast array of renting options.
- Leasable Area Distribution: The leasable area is divided as follows:.
- First Floor: 38,499 m ²
. -Ground Floor: 63,687 m ²
. -Basement: 3,103 m ²
. -This distribution enables a varied mix of retail, dining, and home entertainment outlets.
- Tenant Mix and Anchors: Riyadh Park Mall accommodates a considerable variety of anchor stores, even more improving its appeal. The variety in its occupant mix accommodates a broad spectrum of consumer choices.
- Occupancy Rates: Since August 2022, the shopping mall had a high occupancy rate of 91.2%. This is indicative of its popularity amongst retailers and consumers alike, suggesting a consistent stream of foot traffic and consistent earnings generation.
- Investment Appeal: Given its strategic area, sizable GLA, diverse tenant mix, and high occupancy rate, Riyadh Park Mall represents a robust financial investment opportunity. Its success factors work as a guide for what financiers must try to find 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".
- "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 location in Riyadh, provides valuable insights into the city's retail property market. Let's check out why it stands as a substantial case research study for potential financiers:
- Prime Location: The mall lies in Dammam, Ash Shohda, Ar Rawdah, tactically placed to attract a broad customer base.
- Extensive Area: Covering a land location 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 two and a Gross Leasable Area (GLA) of 102,080 m TWO
. -Leasable Area and Structure: The shopping mall's extensive leasable location is attentively distributed over two floorings, enhancing 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 mall hosts a range of occupants, including local and global brand names, which caters to a broad market, increasing its appeal as a retail location.
- Occupancy Rate: Despite being partly under restoration, the shopping center kept a 64% occupancy 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, place, and tenant mix position it as a strong competitor in Riyadh's retail market. Its large GLA and renovation strategies signal potential for value appreciation, making it an appealing alternative for financiers.
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 shopping mall under remodelling)".
Case Study 3: Al Nakheel Mall
Al Nakheel Mall, a key retail residential or commercial property in Riyadh, provides itself as an intriguing case research study for financiers. Here's a detailed exploration of its features:
- Strategic Location: Located on Othman Bin Affan Road, Abi Sofian Ibn Harb, Mugharazat, Al Olaya, this shopping mall benefits from its position in a populated and affluent area of Riyadh.
- Substantial Size and Offering: The shopping center covers a land area of 238,769 m ² with a total built-up location of 299,448 m ² and a Gross Leasable Area (GLA) of 81,322 m TWO. This substantial size assists in a diverse series 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 deals with different retail and leisure experiences, interesting a large consumer base.
- Tenant Diversity: Al Nakheel Mall's occupant mix consists of a variety of local and global brand names, drawing in a varied group of shoppers and making sure consistent footfall.
- Occupancy and Investment Potential: As of August 2022, the mall reported an occupancy rate of 82.0%. This relatively high occupancy rate, integrated with its size and location, marks Al Nakheel Mall as an appealing financial investment opportunity in the Riyadh retail market.
- Additional Considerations: The mall becomes part of the Arabian Center Group, contributing to its trustworthiness and appeal. Its large GLA and diverse tenant mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.
