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Riyadh's retail genuine estate market is a dynamic and developing landscape, using a huge selection of chances for savvy financiers. Based upon the thorough benchmarking report, here are some key dynamics forming this market:
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Diversity in Residential Or Commercial Property Sizes: The market showcases a wide variety of residential or commercial property sizes, from massive shopping malls 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 needs and choices.
Geographical Spread: Retail residential or commercial properties in Riyadh are not focused in a single area but are spread out across the city. This distribution allows for a diverse financial investment method, targeting various demographics and socio-economic sections.
Growth Prospects: The retail sector in Riyadh is growing, driven by factors such as increasing population, urbanization, and a shift in consumer spending practices. 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 standards and quality renters. This element is essential as it affects foot traffic, renter retention, and total residential or commercial property value.
Catchment Areas
Catchment areas are an important aspect of retail realty, especially for malls, as they straight influence the prospective success of these residential or commercial properties. In Riyadh's retail landscape, understanding these locations is important for investors.
Here's what the report exposes about catchment locations:
- Definition and Importance: A catchment area is the geographical area from which a mall or retail center draws its customers. It's significant because it affects foot traffic, sales potential, and eventually, the profitability of the retail residential or commercial property.
- Granada Center Mall: This shopping center sticks out with its catchment area covering an amazing 40.5% of Riyadh's population. This high percentage suggests its significant 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 protection demonstrates its value as a retail location.
- Riyadh Park Mall: This shopping mall has a catchment that consists of 32.1% of Riyadh's population, marking it as a major attraction 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 overall population. This indicates a strong loyal customer 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 trends is vital for making informed investment decisions.
- Granada Center Mall: Since August 2022, this shopping mall, being one of the largest in Riyadh, reveals a tenancy rate of 64%. It is very important to note that some parts of the mall were under renovation at the time, which may have affected this figure.
- Riyadh Park Mall: This mall, presently the biggest in terms of Gross Leasable Area, has an outstanding tenancy rate of 91.2%, suggesting high tenant retention and constant consumer traffic.
- Riyadh Gallery Mall: With a tenancy rate of 93.3%, this shopping center stands as another key player in the market, reflecting a strong and stable renter base.
- Al Nakheel Mall: This residential or commercial property, integral to the Arabian Center Group, reported an occupancy 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 offered each shopping center, the report suggests that all the shopping centers included follow a similar rates structure. This uniformity suggests a market standard, which can be a crucial element for financiers when assessing the potential roi.
Quotation from the Report:
- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the 2nd largest mall in Riyadh as per the Gross Leasable Area." [Granada Center Mall]
- "Another big 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 financial investment in Riyadh's busy market. Here's an in-depth look 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 strategically situated. It boasts an acreage of 139,118 m TWO, providing adequate area for a varied range of retail and entertainment options.
- Size and Structure: The shopping center encompasses a total built-up area of 241,220 m ² and a Gross Leasable Area (GLA) of 105,290 m ². This considerable size is distributed across three floorings, supplying a large selection of leasing alternatives.
- 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 distribution enables a varied mix of retail, dining, and entertainment outlets. - Tenant Mix and Anchors: Riyadh Park Mall accommodates a considerable number of anchor shops, even more enhancing its appeal. The variety in its tenant mix deals with a broad spectrum of customer choices.
- Occupancy Rates: Since August 2022, the shopping center had a high occupancy rate of 91.2%. This is a sign of its appeal among merchants and consumers alike, suggesting a stable stream of foot traffic and constant profits generation.
- Investment Appeal: Given its strategic place, substantial GLA, varied tenant mix, and high tenancy rate, Riyadh Park Mall represents a robust investment chance. Its success aspects act as a guide for what investors 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 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 shopping center is situated in Dammam, Ash Shohda, Ar Rawdah, tactically positioned to attract a wide client 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 ² and a Gross Leasable Area (GLA) of 102,080 m TWO
. -Leasable Area and Structure: The shopping mall's comprehensive leasable area is attentively dispersed over two floors, 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 mall hosts a variety of tenants, including local and global brands, which accommodates a broad demographic, increasing its appeal as a retail location.
- Occupancy Rate: Despite being partially under restoration, the shopping center preserved a 64% occupancy rate as of August 2022. This figure is likely to post-renovation, making it an appealing prospect for future development.
- Investment Potential: Granada Center Mall's size, place, and renter mix position it as a strong contender in Riyadh's retail market. Its large GLA and renovation plans signal capacity for worth 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 center under restoration)".
Case Study 3: Al Nakheel Mall
Al Nakheel Mall, a crucial retail residential or commercial property in Riyadh, presents itself as an intriguing case study for investors. 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 benefits from 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 ² with a total built-up area 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 TWO
. Ground Floor: 2,091 m TWO- This distribution caters to various retail and leisure experiences, appealing to a large customer base. - Tenant Diversity: Al Nakheel Mall's tenant mix consists of a series of local and worldwide brands, drawing in a diverse group of consumers and ensuring constant footfall.
- Occupancy and Investment Potential: As of August 2022, the shopping mall reported a tenancy rate of 82.0%. This fairly high tenancy rate, integrated with its size and location, marks Al Nakheel Mall as a promising financial investment opportunity in the Riyadh retail market.
- Additional Considerations: The mall is part of the Arabian Center Group, adding to its credibility and appeal. Its big GLA and varied tenant mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.