Riyadh's retail realty market is a vibrant and evolving landscape, providing a myriad of opportunities for savvy financiers. Based upon the thorough benchmarking report, here are some crucial dynamics forming this market:
Diversity in Residential Or Commercial Property Sizes: The market showcases a large range of residential or commercial property sizes, from massive shopping malls like Granada Center Mall with a Gross Leasable Area (GLA) of around 100,000 m ², 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 location however are spread out throughout the city. This circulation permits a varied investment technique, targeting various 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 costs habits. This growth trajectory recommends an appealing future for retail 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 occupants. This element is essential as it affects foot traffic, occupant retention, and total residential or commercial property value.
Catchment Areas
Catchment areas are an important element of retail realty, particularly for shopping malls, as they directly affect the prospective success of these residential or commercial properties. In Riyadh's retail landscape, comprehending these locations is necessary for financiers.
Here's what the report reveals about catchment areas:
- Definition and Importance: A catchment area is the geographical area from which a shopping mall or retail center draws its customers. It's significant because it affects foot traffic, sales capacity, and ultimately, the success of the retail residential or commercial property.
- Granada Center Mall: This mall stands out with its catchment area covering an impressive 40.5% of Riyadh's population. This high portion suggests its substantial 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 essential player in Riyadh's retail landscape. Its substantial protection shows its importance as a retail location.
- Riyadh Park Mall: This shopping center has a catchment that includes 32.1% of Riyadh's population, marking it as a significant 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, amounting to 23.8% of Riyadh's total population. This suggests a strong faithful client base that predominantly 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 tenancy patterns is essential for making informed investment choices.
- Granada Center Mall: As of August 2022, this shopping mall, being one of the biggest in Riyadh, shows a tenancy rate of 64%. It is very important to note that some parts of the shopping mall were under remodelling at the time, which may have affected this figure.
- Riyadh Park Mall: This shopping mall, presently the largest in regards to Gross Leasable Area, has an outstanding tenancy rate of 91.2%, indicating high tenant retention and consistent consumer traffic.
- Riyadh Gallery Mall: With a tenancy rate of 93.3%, this shopping center stands as another essential gamer in the market, reflecting a strong and stable occupant base.
- Al Nakheel Mall: This residential or commercial property, integral 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 per year aren't offered each shopping center, the report indicates that all the shopping malls included follow a comparable pricing structure. This harmony recommends a market requirement, which can be an important element for investors when evaluating the possible roi.
Quotation from the Report:
- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the second largest shopping mall in Riyadh as per the Gross Leasable Area." [Granada Center Mall]
- "Another large shopping center in Riyadh. The tenancy is 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 financial investment in Riyadh's busy market. Here's an in-depth look at its characteristics, 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 strategically located. It boasts a land location of 139,118 m TWO, offering sufficient space for a varied variety of retail and home entertainment alternatives.
- Size and Structure: The shopping mall includes 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 throughout three floors, offering a huge range of leasing choices.
- Leasable Area Distribution: The leasable location is divided as follows:.
- First Floor: 38,499 m TWO
. -Ground Floor: 63,687 m TWO
. -Basement: 3,103 m ²
. -This distribution enables a varied mix of retail, dining, and entertainment outlets. - Tenant Mix and Anchors: Riyadh Park Mall accommodates a considerable number of anchor stores, further improving its appeal. The diversity in its caters to a broad spectrum of customer choices.
- Occupancy Rates: Since August 2022, the shopping mall had a high occupancy rate of 91.2%. This is indicative of its popularity amongst merchants and customers alike, suggesting a constant stream of foot traffic and constant profits generation.
- Investment Appeal: Given its tactical place, large GLA, diverse occupant mix, and high tenancy rate, Riyadh Park Mall represents a robust financial investment opportunity. Its success elements serve as a guide for what investors need to try to find 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".
- "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, provides valuable insights into the city's retail property market. Let's explore why it stands as a significant case research study for potential investors:
- Prime Location: The shopping center is situated in Dammam, Ash Shohda, Ar Rawdah, tactically positioned to draw in a wide consumer base.
- Extensive Area: Covering an acreage of 421,330 m TWO, Granada Center Mall is among the largest in Riyadh. It has an overall built-up location of 318,064 m two and a Gross Leasable Area (GLA) of 102,080 m TWO
. -Leasable Area and Structure: The shopping center's comprehensive leasable area is attentively distributed over two floors, boosting the shopping experience. The floor-wise circulation is as follows:. - First Floor: 60,027 m ²
. -Ground Floor: 42,052 m TWO
. -Tenant Diversity: The shopping center hosts a range of occupants, including regional and international brands, which deals with a broad demographic, increasing its appeal as a retail destination.
- Occupancy Rate: Despite being partly under restoration, the shopping center maintained a 64% occupancy rate since August 2022. This figure is likely to improve post-renovation, making it an attractive possibility for future development.
- 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 plans signal potential for value appreciation, making it an appealing alternative 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 TWO ".-" Occupancy (Aug 2022): 64% (some parts of the shopping center under renovation)".
Case Study 3: Al Nakheel Mall
Al Nakheel Mall, a key retail residential or commercial property in Riyadh, provides itself as an interesting case study for financiers. Here's a detailed expedition 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 location of Riyadh.
- Substantial Size and Offering: The shopping mall covers an acreage 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 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 ²- This circulation deals with various retail and leisure experiences, attracting a large customer base. - Tenant Diversity: Al Nakheel Mall's tenant mix consists of a series of regional and global brands, attracting a varied group of shoppers and ensuring constant step.
- Occupancy and Investment Potential: Since August 2022, the shopping mall reported an occupancy rate of 82.0%. This fairly high tenancy rate, integrated with its size and place, marks Al Nakheel Mall as a promising financial investment chance in the Riyadh retail market.
- Additional Considerations: The mall is part of the Arabian Center Group, adding to its credibility and appeal. Its big GLA and diverse renter mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.