Riyadh's retail property market is a dynamic and evolving landscape, providing a wide variety of opportunities for smart financiers. Based on the detailed benchmarking report, here are some crucial characteristics forming this market:
Diversity in Residential Or Commercial Property Sizes: The marketplace showcases a vast array of residential or commercial property sizes, from large-scale malls like Granada Center Mall with a Gross Leasable Area (GLA) of around 100,000 m TWO, to smaller retail hubs 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 concentrated in a single area however are spread across the city. This distribution enables a different financial investment technique, 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 costs routines. This growth trajectory suggests an appealing future for retail investments in the region.
Quality and Standards: The selected residential or commercial properties for the study are noted for their high requirements and quality renters. This element is essential as it influences foot traffic, tenant retention, and overall residential or commercial property value.
Catchment Areas
Catchment locations are a critical aspect of retail property, especially for shopping centers, as they directly affect the prospective success of these residential or commercial properties. In Riyadh's retail landscape, comprehending these areas is necessary for investors.
Here's what the report exposes about catchment locations:
- Definition and Importance: A catchment location is the geographic location from which a mall or retail center draws its customers. It's significant because it affects foot traffic, sales potential, and ultimately, the profitability of the retail residential or commercial property.
- Granada Center Mall: This shopping center stands out with its catchment location covering an amazing 40.5% of Riyadh's population. This high percentage indicates its considerable impact 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 crucial gamer in Riyadh's retail landscape. Its considerable coverage demonstrates its importance 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 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, totaling up to 23.8% of Riyadh's overall population. This suggests a strong loyal 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 greatest share of captive population of Riyadh City with 23.8%.".
Lease Rates and Occupancy Trends
In the Riyadh retail property market, comprehending lease rates and tenancy trends is crucial for making educated investment decisions.
- Granada Center Mall: As of August 2022, this shopping mall, being among the biggest in Riyadh, reveals a tenancy rate of 64%. It is very important to note that some parts of the shopping mall were under renovation at the time, which might have this figure.
- Riyadh Park Mall: This mall, currently the largest in terms of Gross Leasable Area, has an outstanding occupancy rate of 91.2%, suggesting high renter retention and consistent customer traffic.
- Riyadh Gallery Mall: With an occupancy rate of 93.3%, this shopping center stands as another essential gamer 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 an occupancy rate of 82.0%, showcasing its robust standing in the market.
- Lease Rates: While particular figures for lease rates per m ² each year aren't attended to each shopping center, the report suggests that all the malls included follow a similar pricing structure. This uniformity recommends a market standard, which can be a crucial element for financiers when examining the potential roi.
Quotation from the Report:
- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the second largest mall in Riyadh according to the Gross Leasable Area." [Granada Center Mall]
- "Another large shopping mall in Riyadh. The tenancy 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 financial investment in Riyadh's busy market. Here's an in-depth 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 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 mall incorporates a total built-up location of 241,220 m ² and a Gross Leasable Area (GLA) of 105,290 m ². This considerable size is distributed throughout 3 floors, supplying a vast variety of leasing options.
- Leasable Area Distribution: The leasable area is divided as follows:.
- First Floor: 38,499 m TWO
. -Ground Floor: 63,687 m ²
. -Basement: 3,103 m ²
. -This circulation permits a diverse mix of retail, dining, and home entertainment outlets. - Tenant Mix and Anchors: Riyadh Park Mall accommodates a considerable number of anchor shops, even more improving its appeal. The diversity in its occupant mix accommodates a broad spectrum of customer preferences.
- Occupancy Rates: Since August 2022, the shopping center had a high occupancy rate of 91.2%. This is indicative of its appeal among merchants and consumers alike, suggesting a stable stream of foot traffic and consistent income generation.
- Investment Appeal: Given its strategic location, sizable GLA, diverse occupant mix, and high tenancy rate, Riyadh Park Mall represents a robust investment opportunity. Its success factors work as a guide for what investors should 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".
- "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 popular retail destination in Riyadh, uses valuable insights into the city's retail genuine estate market. Let's check out why it stands as a significant case research study for possible financiers:
- Prime Location: The mall is situated in Dammam, Ash Shohda, Ar Rawdah, tactically placed to bring in a broad consumer base.
- Extensive Area: Covering a land area 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 TWO
. -Leasable Area and Structure: The shopping center's substantial leasable area is thoughtfully distributed over 2 floors, boosting the shopping experience. The floor-wise distribution is as follows:. - First Floor: 60,027 m ²
. -Ground Floor: 42,052 m ²
. -Tenant Diversity: The shopping center hosts a variety of occupants, including local and worldwide brands, which accommodates a broad market, increasing its appeal as a retail destination.
- Occupancy Rate: Despite being partly under remodelling, the mall maintained a 64% occupancy rate as of August 2022. This figure is likely to enhance post-renovation, making it an appealing possibility for future development.
- Investment Potential: Granada Center Mall's size, location, and tenant mix position it as a strong contender in Riyadh's retail market. Its large GLA and renovation 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 TWO ".-" Total Built-up Area: 318,064 m ² ".-" 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, emerges as an intriguing case research 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 take advantage of its position in a populated and upscale location of Riyadh.
- Substantial Size and Offering: The shopping mall covers a land location of 238,769 m two with an overall built-up location of 299,448 m ² and a Gross Leasable Area (GLA) of 81,322 m TWO. This comprehensive size assists in a varied variety of retail and leisure offerings.
- Leasable Area Distribution Across Floors:. - Second Floor: 20,767 m ²
. -First Floor: 58,463 m ²
. Ground Floor: 2,091 m ²- This distribution deals with different retail and leisure experiences, appealing to a broad customer base. - Tenant Diversity: Al Nakheel Mall's occupant mix includes a range of regional and global brands, drawing in a diverse group of buyers and guaranteeing steady step.
- Occupancy and Investment Potential: As of August 2022, the shopping center reported a tenancy rate of 82.0%. This fairly high tenancy rate, combined with its size and place, marks Al Nakheel Mall as a promising investment chance in the Riyadh retail market.
- Additional Considerations: The shopping mall is part of 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.