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Riyadh's retail real estate market is a lively and progressing landscape, offering a variety of opportunities for smart financiers. Based upon the detailed benchmarking report, here are some essential dynamics shaping this market:
Diversity in Residential Or Commercial Property Sizes: The marketplace showcases a large range of residential or commercial property sizes, from massive shopping malls like Granada Center Mall with a Gross Leasable Area (GLA) of roughly 100,000 m ², to smaller retail hubs like Boulevard Mall, boasting a GLA of around 8,000 m TWO. This diversity deals with a broad spectrum of customer requirements and choices.
Geographical Spread: Retail residential or commercial properties in Riyadh are not concentrated in a single location however are spread throughout the city. This circulation enables a different investment method, 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 consumer spending habits. This growth trajectory recommends an appealing future for retail investments in the area.
Quality and Standards: The picked residential or commercial properties for the study are noted for their high requirements and quality tenants. This aspect is essential as it affects foot traffic, tenant retention, and overall residential or commercial property worth.
Catchment Areas
Catchment areas are a critical element of retail property, especially for shopping malls, as they directly influence 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 reveals about catchment locations:
- Definition and Importance: A catchment area is the geographical area from which a shopping center or retail center draws its customers. It's considerable since it affects foot traffic, sales capacity, and ultimately, the success of the retail residential or commercial property.
- Granada Center Mall: This mall sticks out with its catchment area covering a remarkable 40.5% of Riyadh's population. This high portion shows its considerable impact and reach within the city.
- Al Nakheel Mall: With a catchment location that includes 35% of the city's population, Al Nakheel Mall is another key player in Riyadh's retail landscape. Its significant 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 major attraction in the city's retail sector.
- Captive Population: Looking much 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 shows a strong devoted customer base that primarily 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 highest 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 important for making educated investment decisions.
- Granada Center Mall: Since August 2022, this mall, being among the largest in Riyadh, shows an occupancy rate of 64%. It is essential to keep in mind that some parts of the mall were under renovation at the time, which may have impacted this figure.
- Riyadh Park Mall: This mall, presently the biggest in regards to Gross Leasable Area, has an excellent tenancy rate of 91.2%, showing high occupant retention and constant consumer traffic.
- Riyadh Gallery Mall: With an occupancy rate of 93.3%, this shopping mall stands as another essential gamer in the market, reflecting a strong and steady 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 specific figures for lease rates per m two each year aren't provided for each shopping center, the report shows that all the malls consisted of follow a similar rates structure. This harmony suggests a market requirement, which can be a critical aspect for financiers when evaluating the prospective return on financial investment.
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 large shopping mall in Riyadh. The tenancy is extremely excellent 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 financial investment in Riyadh's dynamic market. Here's an in-depth appearance at its characteristics, 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 tactically located. It boasts a land location of 139,118 m TWO, using adequate space for a diverse range of retail and home entertainment choices.
- Size and Structure: The mall includes a total built-up area of 241,220 m two and a Gross Leasable Area (GLA) of 105,290 m ². This substantial size is dispersed across three floorings, supplying a large selection of leasing choices.
- Leasable Area Distribution: The leasable location is divided as follows:.
- First Floor: 38,499 m TWO
. -Ground Floor: 63,687 m TWO
. -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 variety of anchor stores, even more enhancing its appeal. The diversity in its tenant mix accommodates a broad spectrum of customer preferences.
- Occupancy Rates: As of August 2022, the shopping mall had a high occupancy rate of 91.2%. This is indicative of its appeal amongst retailers and customers alike, suggesting a constant stream of and constant earnings generation.
- Investment Appeal: Given its strategic area, substantial GLA, diverse renter mix, and high occupancy rate, Riyadh Park Mall represents a robust financial investment opportunity. Its success aspects function as a guide for what investors must try to find 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 location in Riyadh, provides important insights into the city's retail genuine estate market. Let's explore why it stands as a substantial case study for potential financiers:
- Prime Location: The shopping mall lies in Dammam, Ash Shohda, Ar Rawdah, tactically positioned to attract a large client 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 location of 318,064 m ² and a Gross Leasable Area (GLA) of 102,080 m TWO
. -Leasable Area and Structure: The shopping center's extensive leasable area is thoughtfully dispersed over 2 floorings, boosting the shopping experience. The floor-wise distribution is as follows:. - First Floor: 60,027 m ²
. -Ground Floor: 42,052 m TWO
. -Tenant Diversity: The shopping mall hosts a range of tenants, consisting of regional and worldwide brand names, which caters to a broad demographic, increasing its appeal as a retail destination.
- Occupancy Rate: Despite being partially under restoration, the shopping mall preserved a 64% tenancy 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, area, and renter mix position it as a strong contender in Riyadh's retail market. Its big GLA and restoration plans signal potential for value appreciation, making it an appealing alternative for financiers.
Quotation from the Report:
- "Address: Granada Center Mall, Dammam, Ash Shohda, Ar Rawdah".
- "Land Area: 421,330 m ² ".-" Total Built-up Area: 318,064 m ² ".-" Gross Leasable Area: 102,080 m TWO ".-" Occupancy (Aug 2022): 64% (some parts of the shopping center under renovation)".
Case Study 3: Al Nakheel Mall
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Al Nakheel Mall, a crucial retail residential or commercial property in Riyadh, provides itself as an intriguing case study for investors. Here's a detailed expedition of its functions:
- Strategic Location: Located on Othman Bin Affan Road, Abi Sofian Ibn Harb, Mugharazat, Al Olaya, this shopping mall advantages from its position in a populated and affluent area of Riyadh.
- Substantial Size and Offering: The mall covers a land area of 238,769 m two with a total built-up location of 299,448 m ² and a Gross Leasable Area (GLA) of 81,322 m TWO. This substantial size assists in a diverse variety of retail and leisure offerings.
- Leasable Area Distribution Across Floors:. - Second Floor: 20,767 m TWO
. -First Floor: 58,463 m ²
. Ground Floor: 2,091 m TWO- This distribution caters to various retail and leisure experiences, attracting a broad consumer base. - Tenant Diversity: Al Nakheel Mall's tenant mix includes a range of local and international brand names, drawing in a diverse group of shoppers and making sure constant tramp.
- Occupancy and Investment Potential: As of August 2022, the mall reported a tenancy rate of 82.0%. This reasonably high occupancy rate, combined with its size and location, marks Al Nakheel Mall as an appealing financial investment opportunity in the Riyadh retail market.
- Additional Considerations: The shopping mall is part of the Arabian Center Group, contributing to its trustworthiness and appeal. Its large GLA and varied renter mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.