Riyadh's retail property market is a lively and progressing landscape, providing a variety of chances for smart financiers. Based upon the comprehensive benchmarking report, here are some key characteristics forming this market:
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Diversity in Residential Or Commercial Property Sizes: The marketplace showcases a wide variety 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 retail centers like Boulevard Mall, boasting a GLA of around 8,000 m TWO. This diversity caters to a broad spectrum of consumer needs and preferences.
Geographical Spread: Retail residential or commercial properties in Riyadh are not focused in a single location however are spread throughout the city. This distribution permits a different investment method, targeting different demographics and socio-economic sections.
Growth Prospects: The retail sector in Riyadh is growing, driven by aspects such as increasing population, urbanization, and a shift in consumer costs routines. This growth trajectory suggests a promising future for retail financial investments in the area.
Quality and Standards: The picked residential or commercial properties for the research study are kept in mind for their high standards and quality occupants. This aspect is important as it affects foot traffic, tenant retention, and general residential or commercial property value.
Catchment Areas
Catchment areas are an important element of retail property, especially for malls, as they straight influence 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 locations:
- Definition and Importance: A catchment area is the geographical area from which a shopping center or retail center draws its customers. It's significant since it impacts foot traffic, sales potential, and ultimately, the success of the retail residential or commercial property.
- Granada Center Mall: This shopping center stands out with its catchment area 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 location that encompasses 35% of the city's population, Al Nakheel Mall is another crucial gamer in Riyadh's retail landscape. Its substantial coverage demonstrates its significance as a retail destination.
- Riyadh Park Mall: This shopping center has a catchment that consists of 32.1% of Riyadh's population, marking it as a significant tourist attraction 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 suggests a strong faithful consumer 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% 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, comprehending lease rates and tenancy trends is crucial for making informed investment choices.
- Granada Center Mall: As of August 2022, this shopping center, being one of the largest in Riyadh, reveals a tenancy rate of 64%. It's essential to note that some parts of the shopping mall were under remodelling at the time, which might have impacted this figure.
- Riyadh Park Mall: This mall, presently the biggest in regards to Gross Leasable Area, has an outstanding tenancy rate of 91.2%, indicating high occupant retention and consistent customer traffic.
- Riyadh Gallery Mall: With a tenancy rate of 93.3%, this mall stands as another crucial player in the market, reflecting a strong and stable occupant 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 specific figures for lease rates per m two each year aren't supplied for each mall, the report indicates that all the shopping centers consisted of follow a similar pricing structure. This harmony recommends a market requirement, which can be a crucial aspect for investors when assessing the potential return on investment.
Quotation from the Report:
- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the second biggest shopping mall in Riyadh based on the Gross Leasable Area." [Granada Center Mall]
- "Another large shopping mall in Riyadh. The occupancy 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 an effective retail investment in Riyadh's busy market. Here's an in-depth 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 tactically located. It boasts an acreage of 139,118 m ², using sufficient area for a diverse series of retail and home entertainment options.
- Size and Structure: The shopping mall encompasses an overall built-up location of 241,220 m two and a Gross Leasable Area (GLA) of 105,290 m ². This substantial size is dispersed across 3 floorings, supplying a large selection of renting choices.
- 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 TWO
. -This distribution permits a diverse mix of retail, dining, and home entertainment outlets. - Tenant Mix and Anchors: Riyadh Park Mall accommodates a significant number of anchor stores, further boosting its appeal. The diversity in its renter mix caters to a broad spectrum of customer preferences.
- Occupancy Rates: Since August 2022, the shopping mall had a high occupancy rate of 91.2%. This is a sign of its appeal among retailers and consumers alike, suggesting a stable stream of foot traffic and consistent revenue generation.
- Investment Appeal: Given its strategic place, sizable GLA, varied occupant mix, and high occupancy rate, Riyadh Park Mall represents a robust financial investment opportunity. Its success elements serve as a guide for what investors ought to look for in prospective 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 valuable insights into the city's retail property market. Let's explore why it stands as a significant case research study for possible investors:
- Prime Location: The shopping mall lies in Dammam, Ash Shohda, Ar Rawdah, tactically positioned to bring in a wide client base.
- Extensive Area: Covering an acreage of 421,330 m TWO, Granada Center Mall is among 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 ²
. -Leasable Area and Structure: The mall's extensive leasable location is attentively distributed over two floorings, improving 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 mall hosts a variety of tenants, consisting of local and worldwide brands, which accommodates a broad market, increasing its appeal as a retail destination.
- Occupancy Rate: Despite being partly under remodelling, the shopping mall preserved a 64% occupancy rate since August 2022. This figure is most likely to enhance post-renovation, making it an appealing prospect for future growth.
- Investment Potential: Granada Center Mall's size, area, and tenant mix position it as a strong competitor in Riyadh's retail market. Its big GLA and remodelling strategies signal capacity for worth gratitude, making it an enticing choice for investors.
Quotation from the Report:
- "Address: Granada Center Mall, Dammam, Ash Shohda, Ar Rawdah".
- "Acreage: 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 restoration)".
Case Study 3: Al Nakheel Mall
Al Nakheel Mall, a key retail residential or commercial property in Riyadh, presents itself as an appealing case study for financiers. Here's a comprehensive expedition of its features:
- Strategic Location: Located on Othman Bin Affan Road, Abi Sofian Ibn Harb, Mugharazat, Al Olaya, this mall take advantage of its position in a populous and wealthy location of Riyadh.
- Substantial Size and Offering: The shopping mall covers a land location of 238,769 m two with a total built-up location of 299,448 m two and a Gross Leasable Area (GLA) of 81,322 m ². This extensive size helps with a varied 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 circulation caters to different retail and leisure experiences, appealing to a wide customer base. - Tenant Diversity: Al Nakheel Mall's occupant mix includes a variety of regional and international brands, bring in a varied group of shoppers and guaranteeing constant tramp.
- Occupancy and Investment Potential: As of August 2022, the mall reported an occupancy rate of 82.0%. This reasonably high tenancy rate, integrated with its size and area, marks Al Nakheel Mall as an appealing financial investment opportunity in the Riyadh retail market.
- Additional Considerations: The mall is 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.
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