Riyadh's retail realty market is a vibrant and progressing landscape, providing a myriad of opportunities for smart financiers. Based upon the thorough benchmarking report, here are some crucial characteristics shaping this market:
Diversity in Residential Or Commercial Property Sizes: The market showcases a large range of residential or commercial property sizes, from massive malls like Granada Center Mall with a Gross Leasable Area (GLA) of approximately 100,000 m TWO, to smaller retail centers like Boulevard Mall, boasting a GLA of around 8,000 m ². This diversity caters to a broad spectrum of consumer requirements and choices.
Geographical Spread: Retail residential or commercial properties in Riyadh are not concentrated in a single area however are spread out across the city. This circulation enables for a varied financial investment approach, targeting different demographics and socio-economic sectors.
Growth Prospects: The retail sector in Riyadh is growing, driven by aspects such as increasing population, urbanization, and a shift in customer spending practices. This development trajectory suggests a promising future for retail investments in the area.
Quality and Standards: The selected residential or commercial properties for the research study are noted for their high requirements and quality tenants. This aspect is important as it influences foot traffic, renter retention, and total residential or commercial property value.
Catchment Areas
homes.com
Catchment areas are an important aspect of retail realty, especially for shopping centers, as they directly affect the prospective success of these residential or commercial properties. In Riyadh's retail landscape, comprehending these locations is essential for financiers.
Here's what the report exposes about catchment areas:
- Definition and Importance: A catchment area is the geographic area from which a mall or retail center draws its clients. It's considerable since it affects foot traffic, sales capacity, and ultimately, the profitability of the retail residential or commercial property.
- Granada Center Mall: This shopping mall stands apart with its catchment location covering an impressive 40.5% of Riyadh's population. This high portion suggests its considerable 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 key player in Riyadh's retail landscape. Its considerable coverage shows its significance 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 major 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 overall population. This suggests a strong faithful client base that primarily frequents this 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 genuine estate market, understanding lease rates and tenancy patterns is essential for making informed investment decisions.
- Granada Center Mall: Since August 2022, this shopping center, being among the largest in Riyadh, shows a tenancy rate of 64%. It is necessary to keep in mind that some parts of the mall were under restoration at the time, which may have affected this figure.
- Riyadh Park Mall: This shopping center, presently the largest in terms of Gross Leasable Area, has an impressive tenancy rate of 91.2%, showing high renter retention and constant consumer traffic.
- Riyadh Gallery Mall: With an occupancy rate of 93.3%, this shopping center stands as another crucial player in the market, reflecting a strong and stable occupant base.
- Al Nakheel Mall: This residential or commercial property, important 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 ² annually aren't offered each shopping mall, the report shows that all the shopping malls included follow a comparable prices structure. This harmony suggests a market requirement, which can be a vital aspect for investors when examining the potential roi.
Quotation from the Report:
- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the 2nd biggest mall in Riyadh according to the Gross Leasable Area." [Granada Center Mall]
- "Another large shopping center 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 a successful retail financial investment in Riyadh's bustling market. Here's an extensive take a look at its qualities, 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 ², offering sufficient space for a diverse range of retail and entertainment options.
- Size and Structure: The shopping 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 throughout three floorings, supplying a large 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 TWO
. -This circulation enables a varied mix of retail, dining, and entertainment outlets. - Tenant Mix and Anchors: Riyadh Park Mall accommodates a significant variety of anchor stores, further boosting its appeal. The diversity in its occupant mix accommodates a broad spectrum of customer choices.
- Occupancy Rates: As of August 2022, the shopping center had a high occupancy rate of 91.2%. This is indicative of its appeal amongst merchants and customers alike, suggesting a of foot traffic and constant income generation.
- Investment Appeal: Given its tactical area, substantial GLA, diverse renter mix, and high occupancy rate, Riyadh Park Mall represents a robust financial investment chance. Its success elements serve as a guide for what investors should search for in possible 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".
- "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 realty market. Let's explore why it stands as a significant case research study for potential financiers:
- Prime Location: The mall is situated in Dammam, Ash Shohda, Ar Rawdah, strategically placed to bring in a large customer base.
- Extensive Area: Covering a land location of 421,330 m TWO, Granada Center Mall is one of the biggest 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 mall's substantial leasable area is thoughtfully dispersed 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 ²
. -Tenant Diversity: The shopping mall hosts a variety of renters, including regional and global brand names, which accommodates a broad market, increasing its appeal as a retail destination.
- Occupancy Rate: Despite being partially under restoration, the shopping mall preserved a 64% occupancy rate since August 2022. This figure is most likely to improve post-renovation, making it an attractive prospect for future growth.
- Investment Potential: Granada Center Mall's size, area, and occupant mix position it as a strong contender in Riyadh's retail market. Its big GLA and restoration strategies signal capacity for value gratitude, 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 TWO ".-" Total Built-up Area: 318,064 m TWO ".-" Gross Leasable Area: 102,080 m ² ".-" Occupancy (Aug 2022): 64% (some parts of the mall under restoration)".
Case Study 3: Al Nakheel Mall
Al Nakheel Mall, a key retail residential or commercial property in Riyadh, provides itself as an appealing case study for investors. Here's a comprehensive expedition of its functions:
- Strategic Location: Located on Othman Bin Affan Road, Abi Sofian Ibn Harb, Mugharazat, Al Olaya, this mall take advantage of its position in a populated and affluent location of Riyadh.
- Substantial Size and Offering: The shopping mall covers a land area 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 TWO. This substantial size facilitates a varied series 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 circulation deals with different retail and leisure experiences, attracting a large consumer base. - Tenant Diversity: Al Nakheel Mall's tenant mix consists of a variety of regional and international brand names, bring in a diverse group of buyers and making sure steady tramp.
- Occupancy and Investment Potential: As of August 2022, the mall reported a tenancy rate of 82.0%. This relatively high tenancy rate, combined with its size and place, marks Al Nakheel Mall as an appealing financial investment chance in the Riyadh retail market.
- Additional Considerations: The mall is part of the Arabian Center Group, including to its reliability and appeal. Its large GLA and varied renter mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.