The Investor's Map To Riyadh Retail Properties

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Riyadh's retail real estate market is a dynamic and evolving landscape, providing a huge selection of chances for savvy financiers. Based upon the detailed benchmarking report, here are some key characteristics shaping this market:

Diversity in Residential Or Commercial Property Sizes: The market showcases a wide variety of residential or commercial property sizes, from large-scale shopping centers like Granada Center Mall with a Gross Leasable Area (GLA) of approximately 100,000 m ², to smaller sized retail centers like Boulevard Mall, boasting a GLA of around 8,000 m TWO. This diversity caters to a broad spectrum of customer needs and preferences.
Geographical Spread: Retail residential or commercial properties in Riyadh are not concentrated in a single location but are spread out across the city. This distribution permits for a diverse financial investment technique, targeting different demographics and socio-economic segments.
Growth Prospects: The retail sector in Riyadh is growing, driven by elements such as increasing population, urbanization, and a shift in consumer costs habits. This growth trajectory recommends an appealing future for retail investments in the region.
Quality and Standards: The picked residential or commercial properties for the research study are kept in mind for their high standards and quality occupants. This aspect is crucial as it influences foot traffic, renter retention, and total residential or commercial property worth.
Catchment Areas

Catchment locations are an important aspect of retail realty, especially for shopping centers, as they straight affect the prospective success of these residential or commercial properties. In Riyadh's retail landscape, understanding these areas is essential for financiers.

Here's what the report exposes about catchment locations:

- Definition and Importance: A catchment area is the geographic area from which a shopping mall or retail center draws its clients. It's substantial because it affects foot traffic, sales potential, and eventually, the profitability of the retail residential or commercial property.
- Granada Center Mall: This mall stands apart with its catchment location covering an impressive 40.5% of Riyadh's population. This high percentage indicates its considerable effect and reach within the city.
- Al Nakheel Mall: With a catchment area that incorporates 35% of the city's population, Al Nakheel Mall is another crucial gamer in Riyadh's retail landscape. Its considerable protection 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 major tourist 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, totaling up to 23.8% of Riyadh's total population. This suggests 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 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 occupancy trends is vital for making informed investment decisions.

- Granada Center Mall: As of August 2022, this shopping center, being one of the largest in Riyadh, reveals a tenancy rate of 64%. It is necessary to keep in mind that some parts of the shopping mall were under remodelling at the time, which may have impacted this figure.
- Riyadh Park Mall: This shopping center, presently the biggest in regards to Gross Leasable Area, has an excellent tenancy rate of 91.2%, indicating high occupant retention and constant customer traffic.
- Riyadh Gallery Mall: With a tenancy rate of 93.3%, this mall stands as another essential player in the market, showing a strong and steady renter 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 annually aren't offered each shopping mall, the report shows that all the shopping centers included follow a comparable prices structure. This harmony suggests a market standard, which can be a critical element for investors when evaluating the prospective roi.
Quotation from the Report:

- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the second biggest shopping mall in Riyadh as per the Gross Leasable Area." [Granada Center Mall]
- "Another large mall 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: Mall

Riyadh Park Mall stands as a shining example of a successful retail financial investment in Riyadh's bustling market. Here's a thorough look at its characteristics, making it a notable 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, providing ample space for a diverse variety of retail and home entertainment alternatives.
- Size and Structure: The mall includes an overall built-up location 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 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 TWO
. -This circulation enables a different mix of retail, dining, and home entertainment outlets.
Tenant Mix and Anchors: Riyadh Park Mall accommodates a considerable variety of anchor stores, further boosting its appeal. The diversity in its occupant mix caters to a broad spectrum of consumer choices.
- Occupancy Rates: As of August 2022, the shopping center had a high tenancy rate of 91.2%. This is indicative of its appeal amongst retailers and consumers alike, suggesting a constant stream of foot traffic and consistent income generation.
- Investment Appeal: Given its strategic location, large GLA, varied occupant mix, and high occupancy rate, Riyadh Park Mall represents a robust investment chance. Its success aspects act as a guide for what financiers must look for in possible 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 prominent retail destination in Riyadh, uses valuable insights into the city's retail realty market. Let's explore why it stands as a substantial case study for potential financiers:

- Prime Location: The shopping center lies in Dammam, Ash Shohda, Ar Rawdah, tactically positioned to bring in 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 a total 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 comprehensive leasable area is attentively distributed over two floors, improving 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 mall hosts a variety of renters, consisting of regional and worldwide brand names, which deals with a broad group, increasing its appeal as a retail destination.
- Occupancy Rate: Despite being partly under renovation, the shopping center preserved a 64% occupancy rate since August 2022. This figure is likely to enhance post-renovation, making it an appealing possibility for future growth.
- 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 worth gratitude, making it an appealing 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 ² ".-" Gross Leasable Area: 102,080 m TWO ".-" Occupancy (Aug 2022): 64% (some parts of the shopping mall under remodelling)".
Case Study 3: Al Nakheel Mall

Al Nakheel Mall, a crucial retail residential or commercial property in Riyadh, provides itself as an interesting case study for investors. Here's an in-depth expedition of its functions:

- Strategic Location: Located on Othman Bin Affan Road, Abi Sofian Ibn Harb, Mugharazat, Al Olaya, this mall gain from its position in a populous and upscale location of Riyadh.
- Substantial Size and Offering: The shopping center covers a land location of 238,769 m two with an overall built-up location of 299,448 m two and a Gross Leasable Area (GLA) of 81,322 m TWO. This extensive size assists in a diverse range 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 deals with different retail and leisure experiences, interesting a wide consumer base.
Tenant Diversity: Al Nakheel Mall's tenant mix includes a variety of local and international brands, attracting a diverse group of shoppers and ensuring stable tramp.
- Occupancy and Investment Potential: As of August 2022, the mall reported an occupancy rate of 82.0%. This fairly high tenancy rate, combined with its size and area, marks Al Nakheel Mall as an appealing financial investment chance in the Riyadh retail market.
- Additional Considerations: The shopping mall belongs to the Arabian Center Group, contributing to its credibility and appeal. Its big GLA and diverse renter mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.