Riyadh's retail realty market is a lively and progressing landscape, providing a wide variety of opportunities for smart investors. Based upon the thorough benchmarking report, here are some key characteristics shaping this market:
Diversity in Residential Or Commercial Property Sizes: The marketplace showcases a vast array of residential or commercial property sizes, from large-scale shopping centers like Granada Center Mall with a Gross Leasable Area (GLA) of roughly 100,000 m ², to smaller retail centers like Boulevard Mall, boasting a GLA of around 8,000 m ². This diversity deals with a broad spectrum of customer needs and preferences.
Geographical Spread: Retail residential or commercial properties in Riyadh are not concentrated in a single location however are spread throughout the city. This circulation 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 costs practices. This development trajectory suggests a promising future for retail investments in the region.
Quality and Standards: The selected residential or commercial properties for the study are kept in mind for their high standards and quality tenants. This element is important as it influences foot traffic, renter retention, and overall residential or commercial property worth.
Catchment Areas
Catchment areas are an important aspect of retail realty, particularly for malls, as they straight influence the possible success of these residential or commercial properties. In Riyadh's retail landscape, comprehending these locations is necessary for investors.
Here's what the report reveals about catchment locations:
- Definition and Importance: A catchment area is the geographic location from which a shopping mall or retail center draws its clients. It's substantial since it affects foot traffic, sales capacity, and ultimately, the success of the retail residential or commercial property.
- Granada Center Mall: This mall sticks out with its catchment area covering an exceptional 40.5% of Riyadh's population. This high percentage shows its substantial effect 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 shows its importance as a retail destination.
- Riyadh Park Mall: This mall has a catchment that consists of 32.1% of Riyadh's population, marking it as a major tourist attraction in the city's retail sector.
- Captive Population: Looking deeper into the numbers, Granada Center Mall has the greatest share of a captive population, totaling up to 23.8% of Riyadh's overall population. This shows a strong loyal client base that mainly 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 highest share of captive population of Riyadh City with 23.8%.".
Lease Rates and Occupancy Trends
In the Riyadh retail real estate market, understanding lease rates and tenancy patterns is important for making informed investment decisions.
- Granada Center Mall: As of August 2022, this mall, being one of the biggest in Riyadh, reveals an occupancy rate of 64%. It's important to note that some parts of the shopping center were under remodelling at the time, which may have impacted this figure.
- Riyadh Park Mall: This mall, presently the largest in regards to Gross Leasable Area, has a remarkable occupancy rate of 91.2%, showing high occupant retention and consistent customer traffic.
- Riyadh Gallery Mall: With a tenancy rate of 93.3%, this shopping mall stands as another essential player in the market, reflecting a strong and steady tenant 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 ² per year aren't offered for each shopping mall, the report suggests that all the shopping malls consisted of follow a similar rates structure. This uniformity recommends a market requirement, which can be a critical element for investors when assessing the potential return on financial investment.
Quotation from the Report:
- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the second largest shopping center in Riyadh based on the Gross Leasable Area." [Granada Center Mall]
- "Another large shopping center in Riyadh. The occupancy is great 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 a thorough appearance at its qualities, 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 situated. It boasts an acreage of 139,118 m ², offering ample area for a varied variety of retail and home entertainment options.
- Size and Structure: The mall includes a total built-up area of 241,220 m two and a Gross Leasable Area (GLA) of 105,290 m TWO. This considerable size is dispersed across three floors, offering a large array of leasing alternatives.
- Leasable Area Distribution: The leasable location is divided as follows:.
- First Floor: 38,499 m TWO
. -Ground Floor: 63,687 m ²
. -Basement: 3,103 m ²
. -This distribution permits a different mix of retail, dining, and entertainment outlets. - Tenant Mix and Anchors: Riyadh Park Mall accommodates a significant variety of anchor shops, further improving its appeal. The variety in its renter mix caters to a broad spectrum of customer choices.
- Occupancy Rates: Since August 2022, the shopping center had a high tenancy rate of 91.2%. This is a sign of its popularity amongst merchants and consumers alike, suggesting a constant stream of foot traffic and consistent revenue generation.
- Investment Appeal: Given its strategic location, sizable GLA, varied tenant mix, and high tenancy rate, Riyadh Park Mall represents a robust investment opportunity. Its success factors work as a guide for what financiers should try to find in possible 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 popular retail destination in Riyadh, offers important insights into the city's retail property market. Let's explore why it stands as a significant case study for possible investors:
- Prime Location: The mall is located in Dammam, Ash Shohda, Ar Rawdah, strategically placed to bring in a wide customer base.
- Extensive Area: Covering an acreage of 421,330 m ², Granada Center Mall is one of the largest in Riyadh. It has an overall 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 extensive leasable area is attentively distributed over 2 floors, enhancing 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 shopping mall hosts a range of tenants, including regional and global brands, which caters to a broad demographic, increasing its appeal as a retail destination.
- Occupancy Rate: Despite being partly under renovation, the shopping mall maintained a 64% since August 2022. This figure is most likely to improve post-renovation, making it an appealing prospect 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 restoration strategies signal potential for value gratitude, making it an attractive 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 TWO ".-" Occupancy (Aug 2022): 64% (some parts of the mall under remodelling)".
Case Study 3: Al Nakheel Mall
Al Nakheel Mall, a crucial retail residential or commercial property in Riyadh, emerges as an appealing case study for financiers. 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 center gain from its position in a populated and wealthy area of Riyadh.
- Substantial Size and Offering: The shopping mall covers an acreage of 238,769 m two with a total built-up area of 299,448 m two and a Gross Leasable Area (GLA) of 81,322 m ². This comprehensive size facilitates a diverse range 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 ²- This circulation accommodates various retail and leisure experiences, appealing to a broad consumer base. - Tenant Diversity: Al Nakheel Mall's occupant mix consists of a variety of regional and international brands, attracting a diverse group of consumers and guaranteeing constant tramp.
- Occupancy and Investment Potential: Since August 2022, the mall reported a tenancy rate of 82.0%. This fairly high tenancy rate, combined with its size and area, marks Al Nakheel Mall as an appealing investment chance in the Riyadh retail market.
- Additional Considerations: The shopping center belongs to the Arabian Center Group, contributing to its credibility and appeal. Its large GLA and diverse occupant mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.