Riyadh's retail real estate market is a lively and progressing landscape, offering a plethora of chances for savvy investors. Based on the thorough benchmarking report, here are some crucial dynamics shaping this market:
Diversity in Residential Or Commercial Property Sizes: The market showcases 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 centers like Boulevard Mall, boasting a GLA of around 8,000 m ². 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 area but are spread throughout the city. This circulation permits a varied financial investment technique, targeting different demographics and socio-economic sections.
Growth Prospects: The retail sector in Riyadh is growing, driven by factors such as increasing population, urbanization, and a shift in customer costs routines. This growth trajectory recommends an appealing future for retail financial investments in the region.
Quality and Standards: The chosen residential or commercial properties for the research study are noted for their high requirements and quality tenants. This aspect is crucial as it influences foot traffic, tenant retention, and total residential or commercial property value.
Catchment Areas
Catchment locations are a vital element of retail real estate, especially for shopping malls, as they directly influence the possible success of these residential or commercial properties. In Riyadh's retail landscape, comprehending these areas is important for financiers.
Here's what the report reveals about catchment locations:
- Definition and Importance: A catchment area is the geographic area from which a shopping mall or retail center draws its consumers. It's substantial because it impacts foot traffic, sales capacity, and eventually, the success of the retail residential or commercial property.
- Granada Center Mall: This mall stands apart with its catchment location covering an amazing 40.5% of Riyadh's population. This high percentage suggests 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 crucial gamer in Riyadh's retail landscape. Its considerable protection shows its importance as a retail location.
- Riyadh Park Mall: This mall 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, totaling up to 23.8% of Riyadh's overall population. This suggests a strong faithful customer base that mainly 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% 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 genuine estate market, understanding lease rates and occupancy patterns is important for making informed investment choices.
- Granada Center Mall: As of August 2022, this mall, being one of the largest in Riyadh, reveals a tenancy rate of 64%. It is necessary to note that some parts of the shopping mall were under renovation at the time, which may have impacted this figure.
- Riyadh Park Mall: This center, presently the biggest in regards to Gross Leasable Area, has an impressive tenancy rate of 91.2%, showing high renter retention and consistent customer traffic.
- Riyadh Gallery Mall: With an occupancy rate of 93.3%, this mall stands as another key player 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 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 shopping mall, the report suggests that all the shopping centers consisted of follow a comparable rates structure. This harmony suggests a market requirement, which can be a vital factor for financiers when evaluating the potential return on investment.
Quotation from the Report:
- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the 2nd biggest shopping center in Riyadh according to the Gross Leasable Area." [Granada Center Mall]
- "Another big shopping center in Riyadh. The occupancy 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 an effective retail investment in Riyadh's dynamic market. Here's an in-depth appearance at its attributes, 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 tactically situated. It boasts an acreage of 139,118 m TWO, providing ample area for a varied variety of retail and entertainment alternatives.
- Size and Structure: The shopping center includes an overall built-up location of 241,220 m two and a Gross Leasable Area (GLA) of 105,290 m ². This considerable size is dispersed throughout three floorings, offering a vast 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 ²
. -Basement: 3,103 m TWO
. -This circulation permits a different mix of retail, dining, and entertainment outlets. - Tenant Mix and Anchors: Riyadh Park Mall accommodates a significant variety of anchor stores, further improving its appeal. The diversity in its tenant mix caters to a broad spectrum of customer choices.
- Occupancy Rates: Since August 2022, the mall had a high tenancy rate of 91.2%. This is indicative of its popularity amongst merchants and consumers alike, recommending a stable stream of foot traffic and constant income generation.
- Investment Appeal: Given its strategic location, large GLA, diverse occupant mix, and high tenancy rate, Riyadh Park Mall represents a robust investment opportunity. Its success elements act as a guide for what financiers need to look for in potential 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 destination in Riyadh, uses important insights into the city's retail property market. Let's check out why it stands as a considerable case research study for potential investors:
- Prime Location: The shopping center lies in Dammam, Ash Shohda, Ar Rawdah, strategically positioned to draw in a large client base.
- Extensive Area: Covering a land area of 421,330 m ², Granada Center Mall is one of 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 ²
. -Leasable Area and Structure: The shopping center's extensive leasable location is attentively dispersed over 2 floorings, boosting the shopping experience. The floor-wise circulation is as follows:. - First Floor: 60,027 m TWO
. -Ground Floor: 42,052 m ²
. -Tenant Diversity: The mall hosts a range of occupants, consisting of local and international brand names, which deals with a broad market, increasing its appeal as a retail destination.
- Occupancy Rate: Despite being partly under restoration, the mall kept a 64% tenancy rate as of August 2022. This figure is most likely to improve post-renovation, making it an appealing possibility for future growth.
- Investment Potential: Granada Center Mall's size, location, and occupant mix position it as a strong contender in Riyadh's retail market. Its big GLA and restoration plans signal capacity for value gratitude, 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 TWO ".-" Occupancy (Aug 2022): 64% (some parts of the shopping center under renovation)".
Case Study 3: Al Nakheel Mall
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Al Nakheel Mall, a key retail residential or commercial property in Riyadh, emerges as an intriguing case study for investors. Here's a detailed exploration of its functions:
- Strategic Location: Located on Othman Bin Affan Road, Abi Sofian Ibn Harb, Mugharazat, Al Olaya, this shopping mall gain from its position in a populous and wealthy area of Riyadh.
- Substantial Size and Offering: The shopping center covers an acreage 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 ². This comprehensive size facilitates a diverse variety of retail and leisure offerings.
- Leasable Area Distribution Across Floors:. - Second Floor: 20,767 m TWO
. -First Floor: 58,463 m TWO
. Ground Floor: 2,091 m TWO- This distribution deals with various retail and leisure experiences, interesting a wide customer base. - Tenant Diversity: Al Nakheel Mall's tenant mix includes a range of regional and international brand names, drawing in a varied group of shoppers and making sure steady footfall.
- Occupancy and Investment Potential: Since August 2022, the shopping mall reported an occupancy rate of 82.0%. This relatively high tenancy rate, combined with its size and area, marks Al Nakheel Mall as a promising 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 big GLA and varied renter mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.
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