Riyadh's retail real estate market is a dynamic and developing landscape, using a variety of chances for savvy financiers. Based upon the detailed benchmarking report, here are some essential characteristics forming this market:
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Diversity in Residential Or Commercial Property Sizes: The marketplace showcases a large range 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 retail hubs like Boulevard Mall, boasting a GLA of around 8,000 m ². This diversity accommodates a broad spectrum of customer requirements and preferences.
Geographical Spread: Retail residential or commercial properties in Riyadh are not concentrated in a single area however are spread out throughout the city. This distribution permits a different investment technique, 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 spending habits. This development trajectory suggests an appealing future for retail financial 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 crucial as it influences foot traffic, occupant retention, and overall residential or commercial property worth.
Catchment Areas
Catchment locations are an important aspect of retail genuine estate, particularly for malls, as they straight influence the prospective success of these residential or commercial properties. In Riyadh's retail landscape, understanding these areas is essential for investors.
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 consumers. It's significant since it impacts foot traffic, sales capacity, and ultimately, the profitability of the retail residential or commercial property.
- Granada Center Mall: This shopping mall stands out with its catchment location covering an impressive 40.5% of Riyadh's population. This high portion shows its considerable 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 essential player in Riyadh's retail landscape. Its substantial protection demonstrates its importance as a retail destination.
- Riyadh Park Mall: This shopping mall has a catchment that includes 32.1% of Riyadh's population, marking it as a significant destination in the city's retail sector.
- Captive Population: Looking deeper into the numbers, Granada Center Mall has the greatest share of a captive population, amounting to 23.8% of Riyadh's total population. This indicates a strong devoted customer 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% protection."
- "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 realty market, comprehending lease rates and occupancy patterns is vital for making informed investment decisions.
- Granada Center Mall: As of August 2022, this shopping mall, being one of the largest in Riyadh, reveals an occupancy rate of 64%. It is necessary to note that some parts of the shopping mall were under remodelling at the time, which might have affected this figure.
- Riyadh Park Mall: This shopping mall, presently the largest in terms of 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 shopping mall stands as another key player in the market, showing 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 specific figures for lease rates per m two annually aren't supplied for each shopping center, the report indicates that all the shopping malls included follow a similar prices structure. This uniformity suggests a market requirement, which can be an important factor for investors when examining the possible roi.
Quotation from the Report:
- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the second biggest mall in Riyadh as per the Gross Leasable Area." [Granada Center Mall]
- "Another big shopping mall in Riyadh. The tenancy is really good 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 a successful retail investment in Riyadh's dynamic 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 a land location of 139,118 m TWO, providing sufficient area for a varied variety of retail and home entertainment options.
- Size and Structure: The mall encompasses a total built-up location of 241,220 m ² and a Gross Leasable Area (GLA) of 105,290 m TWO. This significant size is dispersed across 3 floors, offering a large range 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 ²
. -This distribution permits a varied mix of retail, dining, and entertainment outlets. - Tenant Mix and Anchors: Riyadh Park Mall accommodates a significant variety of anchor shops, further enhancing its appeal. The variety in its renter mix accommodates a broad spectrum of consumer preferences.
- Occupancy Rates: As of August 2022, the shopping center had a high tenancy rate of 91.2%. This is indicative of its appeal among sellers and customers alike, suggesting a consistent stream of foot traffic and consistent profits generation.
- Investment Appeal: Given its strategic place, sizable GLA, varied occupant mix, and high occupancy rate, Riyadh Park Mall represents a robust investment chance. Its success aspects work as a guide for what financiers must look for 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".
- "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 location in Riyadh, offers important insights into the city's retail property market. Let's check out why it stands as a significant case study for potential financiers:
- Prime Location: The shopping mall lies in Dammam, Ash Shohda, Ar Rawdah, strategically placed to attract a broad consumer base.
- Extensive Area: Covering a land area 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 ² and a Gross Leasable Area (GLA) of 102,080 m ²
. -Leasable Area and Structure: The mall's extensive leasable area is attentively dispersed over two floors, enhancing the shopping experience. The floor-wise distribution is as follows:. - First Floor: 60,027 m TWO
. -Ground Floor: 42,052 m TWO
. -Tenant Diversity: The shopping center hosts a variety of occupants, including regional and worldwide brands, which caters to a broad group, increasing its appeal as a retail destination.
- Occupancy Rate: Despite being partially under restoration, the shopping center kept a 64% tenancy rate since August 2022. This figure is likely to improve post-renovation, making it an attractive possibility for future growth.
- Investment Potential: Granada Center Mall's size, area, and occupant mix position it as a strong competitor in Riyadh's retail market. Its big GLA and renovation strategies signal capacity for value gratitude, making it an enticing alternative for financiers.
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 remodelling)".
Case Study 3: Al Nakheel Mall
Al Nakheel Mall, an essential retail residential or commercial property in Riyadh, emerges as an intriguing case research study for . Here's an in-depth expedition of its functions:
- Strategic Location: Located on Othman Bin Affan Road, Abi Sofian Ibn Harb, Mugharazat, Al Olaya, this shopping center advantages from its position in a populated and affluent area of Riyadh.
- Substantial Size and Offering: The shopping mall covers a land area of 238,769 m ² with an overall built-up area of 299,448 m ² and a Gross Leasable Area (GLA) of 81,322 m TWO. This substantial size helps with 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 caters to different retail and leisure experiences, appealing to a wide consumer base. - Tenant Diversity: Al Nakheel Mall's tenant mix consists of a series of regional and worldwide brands, bring in a diverse group of shoppers and guaranteeing constant tramp.
- Occupancy and Investment Potential: Since August 2022, the shopping mall reported a tenancy rate of 82.0%. This reasonably high occupancy rate, integrated with its size and location, marks Al Nakheel Mall as a promising investment opportunity in the Riyadh retail market.
- Additional Considerations: The shopping center belongs to the Arabian Center Group, including 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.