Riyadh's retail realty market is a vibrant and progressing landscape, providing a wide variety of opportunities for smart financiers. Based upon the extensive benchmarking report, here are some essential dynamics shaping this market:
Diversity in Residential Or Commercial Property Sizes: The market showcases a broad range of residential or commercial property sizes, from massive shopping centers like Granada Center Mall with a Gross Leasable Area (GLA) of around 100,000 m ², to smaller retail centers like Boulevard Mall, boasting a GLA of around 8,000 m ². This variety deals with a broad spectrum of consumer requirements and preferences.
Geographical Spread: Retail residential or commercial properties in Riyadh are not focused in a single location but are spread out throughout the city. This circulation permits a different investment method, targeting different demographics and socio-economic sections.
Growth Prospects: The retail sector in Riyadh is growing, driven by elements such as increasing population, urbanization, and a shift in consumer spending routines. This growth trajectory recommends an appealing future for retail investments in the area.
Quality and Standards: The chosen residential or commercial properties for the study are noted for their high standards and quality occupants. This aspect 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 property, particularly for shopping centers, as they directly influence the possible success of these residential or commercial properties. In Riyadh's retail landscape, understanding these locations is necessary for investors.
Here's what the report exposes about catchment areas:
- Definition and Importance: A catchment area is the geographic location from which a shopping center or retail center draws its consumers. It's substantial due to the fact that it affects foot traffic, sales capacity, and ultimately, the success of the retail residential or commercial property.
- Granada Center Mall: This shopping mall stands out with its catchment location covering a remarkable 40.5% of Riyadh's population. This high portion shows its substantial impact 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 coverage shows its significance as a retail destination.
- Riyadh Park Mall: This shopping center has a catchment that includes 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 highest share of a captive population, totaling up to 23.8% of Riyadh's total population. This shows a strong faithful customer 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 property market, understanding lease rates and tenancy patterns is essential for making educated investment choices.
- Granada Center Mall: As of August 2022, this mall, being among the biggest in Riyadh, shows a tenancy rate of 64%. It is essential to keep in mind that some parts of the shopping center were under renovation at the time, which might have affected this figure.
- Riyadh Park Mall: This mall, presently the biggest in regards to Gross Leasable Area, has a remarkable occupancy rate of 91.2%, suggesting high occupant retention and constant customer traffic.
- Riyadh Gallery Mall: With a tenancy rate of 93.3%, this mall stands as another key player in the market, reflecting a strong and steady tenant 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 ² annually aren't attended to each mall, the report indicates that all the shopping malls consisted of follow a comparable rates structure. This uniformity recommends a market requirement, which can be a vital factor for financiers when evaluating the potential 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 big shopping mall in Riyadh. The occupancy is great at 93.3%." [Riyadh Gallery Mall]
- "A crucial 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 take a look at its attributes, 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 tactically situated. It boasts an acreage of 139,118 m TWO, using sufficient space for a diverse series 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 distributed throughout 3 floorings, offering a huge variety of leasing alternatives.
- Leasable Area Distribution: The leasable area is divided as follows:.
- First Floor: 38,499 m ²
. -Ground Floor: 63,687 m TWO
. -Basement: 3,103 m TWO
. -This distribution permits a diverse mix of retail, dining, and entertainment outlets.
- Tenant Mix and Anchors: Riyadh Park Mall accommodates a considerable variety of anchor shops, further improving its appeal. The variety in its tenant mix deals with a broad spectrum of consumer choices.
- Occupancy Rates: As of August 2022, the mall had a high occupancy rate of 91.2%. This is a sign of its popularity amongst retailers and customers alike, suggesting a stable stream of foot traffic and constant income generation.
- Investment Appeal: Given its tactical location, large GLA, varied renter mix, and high tenancy rate, Riyadh Park Mall represents a robust financial investment chance. Its success elements serve as a guide for what investors need to search 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".
- "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 prominent retail destination in Riyadh, provides important insights into the city's retail property market. Let's explore why it stands as a significant case study for potential investors:
- Prime Location: The shopping center is situated in Dammam, Ash Shohda, Ar Rawdah, strategically placed to draw in a large consumer base.
- Extensive Area: Covering a land location of 421,330 m ², Granada Center Mall is among the largest in Riyadh. It has an overall 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 thoughtfully dispersed over two floorings, boosting 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 mall hosts a variety of occupants, consisting of regional and international brand names, which accommodates a broad demographic, increasing its appeal as a retail destination.
- Occupancy Rate: Despite being partially under renovation, the shopping center maintained a 64% tenancy rate as of August 2022. This figure is most likely to improve post-renovation, making it an attractive possibility for future growth.
- Investment Potential: Granada Center Mall's size, area, and tenant mix position it as a strong contender in Riyadh's retail market. Its big GLA and remodelling strategies signal potential for value gratitude, making it an appealing option 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 TWO ".-" Occupancy (Aug 2022): 64% (some parts of the mall under renovation)".
Case Study 3: Al Nakheel Mall
Al Nakheel Mall, a key retail residential or commercial property in Riyadh, emerges as an interesting case study for investors. Here's a detailed exploration of its features:
- 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 affluent location of Riyadh.
- Substantial Size and Offering: The shopping center covers a land location of 238,769 m ² with an overall 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 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 circulation caters to various retail and leisure experiences, attracting a broad customer base.
- Tenant Diversity: Al Nakheel Mall's renter mix includes a series of regional and global brands, drawing in a diverse group of consumers and guaranteeing constant tramp.
- Occupancy and Investment Potential: As of August 2022, the shopping mall reported a tenancy rate of 82.0%. This fairly high occupancy rate, combined with its size and place, marks Al Nakheel Mall as a promising financial investment chance in the Riyadh retail market.
- Additional Considerations: The shopping mall becomes part of the Arabian Center Group, contributing to its reliability and appeal. Its large GLA and diverse tenant mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.
