bloglines.com
Riyadh's retail property market is a lively and progressing landscape, using a wide variety of opportunities for savvy financiers. Based on the extensive benchmarking report, here are some essential dynamics shaping this market:
Diversity in Residential Or Commercial Property Sizes: The market showcases a vast array of residential or commercial property sizes, from massive malls like Granada Center Mall with a Gross Leasable Area (GLA) of roughly 100,000 m TWO, to smaller retail centers like Boulevard Mall, boasting a GLA of around 8,000 m ². This diversity accommodates a broad spectrum of consumer needs and preferences.
Geographical Spread: Retail residential or commercial properties in Riyadh are not concentrated in a single area but are spread throughout the city. This circulation permits a different financial investment approach, targeting different demographics and socio-economic sectors.
Growth Prospects: The retail sector in Riyadh is growing, driven by elements such as increasing population, urbanization, and a shift in consumer spending practices. This growth trajectory recommends a promising future for retail financial investments in the region.
Quality and Standards: The chosen residential or commercial properties for the study are kept in mind for their high requirements and quality occupants. This aspect is crucial as it influences foot traffic, tenant retention, and overall residential or commercial property value.
Catchment Areas
consumersearch.com
Catchment areas are an important element of retail real estate, especially for malls, as they directly influence the potential success of these residential or commercial properties. In Riyadh's retail landscape, comprehending these areas is vital for financiers.
Here's what the report exposes about catchment areas:
- Definition and Importance: A catchment area is the geographic area from which a shopping center or retail center draws its customers. It's significant because it impacts foot traffic, sales capacity, and ultimately, the profitability of the retail residential or commercial property.
- Granada Center Mall: This mall stands apart with its catchment location covering a remarkable 40.5% of Riyadh's population. This high percentage shows its substantial impact and reach within the city.
- Al Nakheel Mall: With a catchment location that encompasses 35% of the city's population, Al Nakheel Mall is another essential player in Riyadh's retail landscape. Its substantial protection shows its importance as a retail destination.
- Riyadh Park Mall: This shopping center has a catchment that consists of 32.1% of Riyadh's population, marking it as a major tourist 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, totaling up to 23.8% of Riyadh's total population. This indicates a strong loyal customer base that predominantly 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 greatest share of captive population of Riyadh City with 23.8%.".
Lease Rates and Occupancy Trends
In the Riyadh retail real estate market, comprehending lease rates and tenancy trends is essential for making educated financial investment decisions.
- Granada Center Mall: Since August 2022, this shopping center, being one of the largest in Riyadh, reveals an occupancy rate of 64%. It is necessary to note that some parts of the shopping center were under restoration at the time, which may have affected this figure.
- Riyadh Park Mall: This shopping mall, currently the largest in regards to 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 mall stands as another crucial player in the market, reflecting a strong and steady renter base.
- Al Nakheel Mall: This residential or commercial property, important 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 mall, the report shows that all the malls included follow a comparable pricing structure. This uniformity suggests a market requirement, which can be a vital factor for investors when evaluating the possible roi.
Quotation from the Report:
- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the second largest shopping center in Riyadh as per the Gross Leasable Area." [Granada Center Mall]
- "Another big shopping center in Riyadh. The tenancy is great 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 an effective retail investment in Riyadh's busy market. Here's an in-depth take a look at its characteristics, 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 TWO, using sufficient area for a varied variety of retail and entertainment alternatives.
- Size and Structure: The mall incorporates 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 dispersed across 3 floorings, offering a large selection of leasing alternatives.
- Leasable Area Distribution: The leasable area 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 significant variety of anchor stores, even more boosting its appeal. The diversity in its tenant mix accommodates a broad spectrum of customer choices.
- Occupancy Rates: Since August 2022, the shopping center had a high tenancy rate of 91.2%. This is indicative of its popularity amongst sellers and consumers alike, recommending a consistent stream of foot traffic and consistent profits generation.
- Investment Appeal: Given its tactical place, sizable GLA, diverse renter mix, and high tenancy rate, Mall represents a robust investment chance. Its success elements act as a guide for what investors need to 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".
- "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 valuable insights into the city's retail property market. Let's check out why it stands as a substantial case research study for possible financiers:
- Prime Location: The shopping center is situated in Dammam, Ash Shohda, Ar Rawdah, tactically positioned to attract a broad consumer base.
- Extensive Area: Covering an acreage 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 mall's extensive leasable area is attentively dispersed over two floors, enhancing the shopping experience. The floor-wise circulation is as follows:. - First Floor: 60,027 m ²
. -Ground Floor: 42,052 m ²
. -Tenant Diversity: The shopping center hosts a variety of renters, including regional and worldwide brand names, which caters to a broad market, increasing its appeal as a retail destination.
- Occupancy Rate: Despite being partly under renovation, the shopping mall preserved a 64% occupancy rate since August 2022. This figure is likely to enhance post-renovation, making it an attractive prospect 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 large GLA and renovation plans signal capacity for value appreciation, making it an attractive choice for financiers.
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 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 interesting 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 shopping mall take advantage of its position in a populated and upscale location of Riyadh.
- Substantial Size and Offering: The mall covers an acreage of 238,769 m ² with a total built-up location of 299,448 m two and a Gross Leasable Area (GLA) of 81,322 m ². This extensive size facilitates a diverse series 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 accommodates various retail and leisure experiences, interesting a wide customer base. - Tenant Diversity: Al Nakheel Mall's occupant mix consists of a range of regional and global brands, drawing in a varied group of shoppers and ensuring consistent tramp.
- Occupancy and Investment Potential: Since August 2022, the mall reported an occupancy rate of 82.0%. This relatively high occupancy rate, integrated with its size and area, 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, including to its credibility and appeal. Its large GLA and varied renter mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.