The Investor's Map To Riyadh Retail Properties

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Riyadh's retail property market is a vibrant and developing landscape, offering a plethora of chances for savvy financiers. Based upon the thorough benchmarking report, here are some key characteristics forming 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 TWO, to smaller retail hubs like Boulevard Mall, boasting a GLA of around 8,000 m TWO. This variety caters to a broad spectrum of customer requirements and choices.
Geographical Spread: Retail residential or commercial properties in Riyadh are not focused in a single location however are spread out across the city. This circulation allows for a different investment technique, targeting various 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 customer costs routines. This development trajectory suggests an appealing future for retail 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 occupants. This aspect is vital as it affects foot traffic, occupant retention, and overall residential or commercial property worth.
Catchment Areas

Catchment areas are a crucial element of retail realty, especially for shopping malls, as they straight affect the potential success of these residential or commercial properties. In Riyadh's retail landscape, understanding these locations is essential for investors.

Here's what the report reveals about catchment locations:

- Definition and Importance: A catchment area is the geographical location from which a mall or retail center draws its customers. It's substantial due to the fact that it affects foot traffic, sales capacity, and eventually, the profitability of the retail residential or commercial property.
- Granada Center Mall: This shopping center stands apart with its catchment area covering a remarkable 40.5% of Riyadh's population. This high portion suggests its significant effect and reach within the city.
- Al Nakheel Mall: With a catchment area that encompasses 35% of the city's population, Al Nakheel Mall is another key gamer in Riyadh's retail landscape. Its substantial protection demonstrates its significance 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 significant destination 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 total population. This indicates a strong loyal client base that mainly 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 genuine estate market, understanding lease rates and tenancy patterns is vital for making educated financial investment decisions.

- Granada Center Mall: Since August 2022, this mall, being one of the largest in Riyadh, shows an occupancy rate of 64%. It is necessary to note that some parts of the mall were under renovation at the time, which might have impacted this figure.
- Riyadh Park Mall: This shopping mall, currently the largest in terms of Gross Leasable Area, has an impressive occupancy rate of 91.2%, showing high tenant retention and constant customer traffic.
- Riyadh Gallery Mall: With an occupancy rate of 93.3%, this shopping mall stands as another essential 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 ² per year aren't offered each shopping center, the report indicates that all the shopping centers consisted of follow a comparable pricing . This uniformity suggests a market standard, which can be a vital aspect for financiers when assessing the potential roi.
Quotation from the Report:

- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the 2nd largest shopping center in Riyadh as per the Gross Leasable Area." [Granada Center Mall]
- "Another big mall in Riyadh. The occupancy is extremely excellent at 93.3%." [Riyadh Gallery Mall]
- "A crucial 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 extensive take a 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 located. It boasts an acreage of 139,118 m ², using sufficient space for a diverse variety of retail and entertainment choices.
- 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 TWO. This substantial size is distributed across three floorings, providing a vast variety of renting options.
- Leasable Area Distribution: The leasable location is divided as follows:.

First Floor: 38,499 m ²
. -Ground Floor: 63,687 m TWO
. -Basement: 3,103 m TWO
. -This distribution enables a different mix of retail, dining, and entertainment outlets.
Tenant Mix and Anchors: Riyadh Park Mall accommodates a considerable variety of anchor shops, even more improving its appeal. The diversity in its tenant mix caters to a broad spectrum of customer choices.
- Occupancy Rates: As of August 2022, the mall had a high tenancy rate of 91.2%. This is indicative of its popularity amongst merchants and customers alike, recommending a consistent stream of foot traffic and constant profits generation.
- Investment Appeal: Given its tactical location, sizable GLA, varied renter mix, and high occupancy rate, Riyadh Park Mall represents a robust investment opportunity. Its success factors act as a guide for what investors need to 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 popular retail destination in Riyadh, offers important insights into the city's retail property market. Let's check out why it stands as a significant case research study for prospective investors:

- Prime Location: The mall lies in Dammam, Ash Shohda, Ar Rawdah, strategically positioned to draw in a wide consumer base.
- Extensive Area: Covering a land location of 421,330 m TWO, Granada Center Mall is one of the biggest in Riyadh. It has a total 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 substantial leasable area is thoughtfully dispersed over 2 floors, boosting the shopping experience. The floor-wise circulation is as follows:.
First Floor: 60,027 m TWO
. -Ground Floor: 42,052 m TWO
. -Tenant Diversity: The shopping mall hosts a variety of occupants, consisting of regional and worldwide brand names, which accommodates a broad group, increasing its appeal as a retail location.
- Occupancy Rate: Despite being partially under renovation, the mall kept a 64% tenancy rate since August 2022. This figure is most likely to improve post-renovation, making it an attractive possibility for future development.
- Investment Potential: Granada Center Mall's size, place, and occupant mix position it as a strong contender in Riyadh's retail market. Its big GLA and renovation strategies signal potential for value appreciation, making it an enticing option for financiers.
Quotation from the Report:

- "Address: Granada Center Mall, Dammam, Ash Shohda, Ar Rawdah".
- "Acreage: 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 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 research study for investors. Here's an in-depth exploration of its features:

- Strategic Location: Located on Othman Bin Affan Road, Abi Sofian Ibn Harb, Mugharazat, Al Olaya, this mall advantages from its position in a populous and affluent area of Riyadh.
- Substantial Size and Offering: The shopping mall covers a land area of 238,769 m ² with a total built-up location of 299,448 m ² and a Gross Leasable Area (GLA) of 81,322 m TWO. This comprehensive size helps with a varied series 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 caters to different retail and leisure experiences, appealing to a wide customer base.
Tenant Diversity: Al Nakheel Mall's occupant mix consists of a series of local and international brand names, attracting a diverse group of buyers and ensuring steady tramp.
- Occupancy and Investment Potential: Since August 2022, the shopping mall reported an occupancy rate of 82.0%. This fairly high tenancy rate, integrated with its size and area, marks Al Nakheel Mall as an appealing financial investment chance in the Riyadh retail market.
- Additional Considerations: The shopping center is part of the Arabian Center Group, including to its reliability and appeal. Its big GLA and diverse renter mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.