drivenz.co.nz
Riyadh's retail property market is a dynamic and evolving landscape, providing a wide variety of chances for savvy financiers. Based upon the comprehensive benchmarking report, here are some key characteristics forming this market:
Diversity in Residential Or Commercial Property Sizes: The market showcases a wide range of residential or commercial property sizes, from large-scale shopping malls like Granada Center Mall with a Gross Leasable Area (GLA) of around 100,000 m TWO, to smaller retail centers like Boulevard Mall, boasting a GLA of around 8,000 m TWO. This variety deals with a broad spectrum of customer needs and preferences.
Geographical Spread: Retail residential or commercial properties in Riyadh are not focused in a single location however are spread out throughout the city. This circulation allows for a different financial investment method, targeting various demographics and socio-economic sectors.
Growth Prospects: The retail sector in Riyadh is growing, driven by factors such as increasing population, urbanization, and a shift in customer 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 noted for their high requirements and quality occupants. This element is vital as it affects foot traffic, renter retention, and overall residential or commercial property value.
Catchment Areas
Catchment locations are a critical element of retail property, especially for malls, as they directly influence the potential success of these residential or commercial properties. In Riyadh's retail landscape, understanding these areas is vital for financiers.
Here's what the report reveals about catchment areas:
- Definition and Importance: A catchment area is the geographic area from which a mall or retail center draws its customers. It's considerable because it impacts foot traffic, sales capacity, and eventually, the success of the retail residential or commercial property.
- Granada Center Mall: This shopping mall stands out with its catchment area covering an impressive 40.5% of Riyadh's population. This high portion shows its substantial 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 location.
- Riyadh Park Mall: This shopping mall has a catchment that includes 32.1% of Riyadh's population, marking it as a significant 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 overall population. This indicates a strong loyal consumer 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% 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, understanding lease rates and occupancy trends is vital for making educated investment decisions.
- Granada Center Mall: Since August 2022, this shopping center, being one of the largest in Riyadh, shows 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 impacted this figure.
- Riyadh Park Mall: This shopping mall, presently the largest in terms of Gross Leasable Area, has an impressive occupancy rate of 91.2%, indicating high occupant retention and constant consumer 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 occupant 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 particular figures for lease rates per m two annually aren't provided for each shopping center, the report indicates that all the malls included follow a similar prices structure. This uniformity recommends a market standard, which can be a vital element for financiers when assessing the prospective roi.
Quotation from the Report:
- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the 2nd largest shopping mall in Riyadh as per the Gross Leasable Area." [Granada Center Mall]
- "Another large mall in Riyadh. The tenancy 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
weldplus.com
Riyadh Park Mall stands as a shining example of a successful retail financial investment in Riyadh's bustling market. Here's an extensive look at its qualities, 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 situated. It boasts a land location of 139,118 m TWO, providing adequate area for a diverse series of retail and entertainment alternatives.
- Size and Structure: The mall incorporates an overall built-up area of 241,220 m two and a Gross Leasable Area (GLA) of 105,290 m TWO. This significant size is dispersed throughout 3 floorings, offering a huge range of leasing 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 diverse mix of retail, dining, and home entertainment outlets.
- Tenant Mix and Anchors: Riyadh Park Mall accommodates a considerable variety of anchor shops, further improving its appeal. The diversity in its occupant mix deals with a broad spectrum of .
- Occupancy Rates: Since August 2022, the mall had a high tenancy rate of 91.2%. This is indicative of its appeal among merchants and customers alike, recommending a steady stream of foot traffic and consistent income generation.
- Investment Appeal: Given its strategic area, large GLA, diverse renter mix, and high tenancy rate, Riyadh Park Mall represents a robust investment chance. Its success factors work as a guide for what financiers should 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, provides important insights into the city's retail realty market. Let's check out why it stands as a significant case research study for prospective 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 area 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 location is thoughtfully dispersed over two floorings, improving 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 mall hosts a variety of renters, consisting of regional and global brands, which caters to a broad group, increasing its appeal as a retail destination.
- Occupancy Rate: Despite being partially under restoration, the shopping center kept a 64% tenancy rate as of August 2022. This figure is likely to improve post-renovation, making it an appealing possibility for future growth.
- Investment Potential: Granada Center Mall's size, place, and renter mix position it as a strong competitor in Riyadh's retail market. Its large GLA and renovation strategies signal capacity for value gratitude, making it an appealing choice 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 TWO ".-" Occupancy (Aug 2022): 64% (some parts of the shopping center under remodelling)".
Case Study 3: Al Nakheel Mall
Al Nakheel Mall, a key retail residential or commercial property in Riyadh, presents itself as an intriguing case study for investors. Here's a detailed exploration of its features:
- 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 wealthy location of Riyadh.
- Substantial Size and Offering: The mall covers an acreage of 238,769 m ² with an overall built-up area of 299,448 m two and a Gross Leasable Area (GLA) of 81,322 m TWO. This extensive size assists in a varied variety 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 ²- This circulation caters to various retail and leisure experiences, interesting a large customer base. - Tenant Diversity: Al Nakheel Mall's renter mix includes a variety of local and worldwide brands, bring in a varied group of shoppers and making sure stable tramp.
- Occupancy and Investment Potential: As of August 2022, the mall reported an occupancy rate of 82.0%. This fairly high occupancy rate, integrated with its size and area, marks Al Nakheel Mall as an appealing investment opportunity in the Riyadh retail market.
- Additional Considerations: The shopping mall belongs to the Arabian Center Group, contributing to its credibility and appeal. Its large GLA and varied occupant mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.